- A project under the Enjin banner raises $20 million
- The NFT marketplace will be built on Polkadot
- ENJ price shows a negative trend
BELGIUM (CoinChapter.com) — There used to be a time when cryptocurrency assets noted a strong price increase or decrease depending on news and developments. That no longer seems to be the case, particularly during bear markets. For example, Enjin is subject to a big development, yet its price momentum heads in the opposite direction.
Big Enjin News Regarding NFTs
As the blockchain that positions itself as the next layer for Non-Fungible Tokens, there is a keen interest in what Enjin can provide. Its technology is home to dozens of NFT-related projects, all of which have varying degrees of success.
Efinity, a relatively new NFT marketplace that will reside on the Polkadot network and achieve cross-chain interoperability, raised $20 million this week. Marketplaces like this must extend beyond their default blockchain to unlock the full potential of NFT technology.
Although it is not the first time this marketplace succeeds in gathering funding, it shows the industry is still in an early stage. While most NFTs are issued on Ethereum, the high transaction costs and minting fees hold that ecosystem back. Enjin provides much cheaper and accessible options in this regard. The team is also responsible for creating the ERC-1155 token standard, which lets contracts manage multiple tokens.
Raising an extra $20 million from selling the EFI token on CoinList is a significant milestone. It shows there is a lot of interest in this marketplace.
Moreover, it is a validation of Enjin’s vision for NFTs, as the focus on cross-chain interoperability is a top priority. Efinity will eventually run across Polkadot, Kusama, Ethereum, Enjin’s JumpNet, and many other blockchains. While the EFI token is primarily used within the Efinity ecosystem for staking, governance, rewards, and paying transaction fees, it also serves a purpose on Enjin’s JumpNet.
ENJ Price Goes Down Instead Of Up
Whereas one would expect this development to impact the ENJ price positively, the opposite has come true.
Due to a bigger bearish market engulfing all crypto assets, the value of Enjin’s asset is going down with the ship. That is somewhat unfortunate, but it appears the negative trend may not remain in place for too long. Today’s bearish candle is tiny in size, although the overarching momentum for Bitcoin and Ethereum is not too promising yet.
For Enjin, this is another big development, but one that may not necessarily contribute to the ENJ price. It is a project under the team’s banner, but one that has its own token. As such, the $20m in token sales will do nothing for ENJ itself. All it does is highlight a project under the team’s banner, but one that is – for the most part – separate from Enjin’s ecosystem or the native asset itself.
It may take a market recovery by either Bitcoin, Ethereum, or both before alternative assets show any momentum again. For now, that recovery remains unlikely, although things can change at any given moment. There is still no stable support level for cryptocurrencies today, even if this week’s momentum seemed somewhat promising. With the weekend around the corner, the more bearish pressure is slightly likely.