In recent news, Enjin has managed to rally well over a whopping 800%. Many experts and analysts alike have delved into why this occurred, and they believe that there may be a few key factors that did contribute to this happening, and these factors will be discussed in detail in this article.
In summary, NFT’s rise in popularity, new partnerships, and JumpNet’s imminent launch are the key reasons that will be comprehensively talked about.
Userbase expanded thanks to exchange listings
A key factor behind the 800% rally for Enjin is due to all the crypto exchanges that listed this cryptocurrency. This listing resulted in trading volumes being pushed to grander heights, and it also led to an increase in activities being conducted on-chain.
The listing on the exchanges had begun towards the end of last month, and this is around the time when Enjin trading pairs had been added to FTX and Crypto.com. This helped the rally to be initiated in the first place.
NFT transactions to have cheaper fees amid the rise in popularity
Enjin’s momentum really picked up earlier in March following the announcement of JumpNet. JumpNet itself is essentially a version of Ethereum’s blockchain and is also private. The ETH blockchain in question utilizes a PoA (Proof of Authority) mechanism. The mechanism itself is based on consensus, and this, in turn, enables gas-free and instant transactions to occur on-chain.
Few would argue that rising transaction costs are and continue to be a big challenge that the cryptocurrency world face. This issue had been made even worse within the previous six months due to the ETH network being used more often by DeFi (decentralized finance) protocols as well as NFTs skyrocketing in popularity. Therefore, the aforementioned mechanism will certainly be useful.
NFTs (non-fungible tokens) have really exploded in popularity as of late, and we hear about it all the time nowadays. Record-breaking sales and success stories regarding digital art have become commonplace on mainstream media outlets and communities. NFTs have even been discussed on well-known news channels such as BBC and CNN.
Ultimately, it would seem that all of these points in the direction of NFT ecosystems are becoming the center of attention for an industry that is rapidly evolving in both business and popularity.