NFTs, or nonfungible tokens, have created a sort of hysteria recently. There are stories of record-breaking digital art sales making mainstream media headlines. One project that has made the most of the trend is Enjin Coin, which trades under ENJ. Its co-founder, Witek Radomski, was involved the development of a token standard called ERC-1155. That standard enabled the creation of NFTs on Ethereum's platform.
One news outlet's analysis showed that ENJ's price has gone up by 800% in March 2021. It went from a low of $0.34 at the end of February to $3.09 on March 15. There has been a continuously high trading volume on this NFT, and here are three possible reasons why.
Low Fees Enjin uses JumpNet. this is a private version of Ethereum's blockchain. It uses a gas-free, instant transaction. JumpNet gets around high fees by allowing users to send and receive the coins and tokens for free. Enjin plans to build a decentralized blockchain that will support more token features and allow trades of any asset from any blockchain. This will enhance interoperability.
Better Exchange Listings Enjin has been listed on a variety of cryptocurrency exchanges. More visibility means more trading. The greater visibility has also led to more chain activity and a higher number of active addresses.
Enjin's Ecosystem Is Growing The third reason why Enjin's price soared is the popularity of NFTs in general. They're growing in the art and business sectors of the worldwide economy. More partnerships have been established. This has yielded more attention. Enjin has gotten attention from Age of Rust, Six Dragons and GameTalkTalk. The widespread adoption of NFTs and their ability to create an environment free of fees has put Enjin in a good position to see more growth during what is widely considered to be a bull market.
The continued tokenization of cryptocurrency is likely to move beyond art. Many think it will soon touch real estate and history. Those projects could offer a good UI in the NFT world. They could also become centerpieces in the industry of digital assets. This is a rapidly changing field.