Enjin Coin (CCC:ENJ-USD) is a crypto token that blockchain social game players can use to buy in-game virtual items. In addition, Enjin is a store of value that can be used in the fast-growing non-fungible token (NFT) marketplace.
This makes it quite unique among the numerous cryptocurrencies out there. Enjin has a $2.2 billion market capitalization and is ranked No. 62 in the universe of cryptos in terms of market cap.
Moreover, in the last three months, from its recent trough of $1.203 on Sept. 27, ENJ-USD has risen 124% to $2.71 as of Dec. 6. And this is after it peaked at $3.50 on Nov. 5. So Enjin has been on quite a ride recently.
Most likely one of the main reasons for this huge gain has been Enjin’s ability to provide value for owners of NFTs. Let’s look at this further.
The Enjin Platform’s Standout Features
Enjin Coin is controlled by Enjin, the company that created the Enjin Network. It’s an Ethereum-based (CCC:ETH-USD) social gaming platform on which users can create websites, clans, chat and host virtual item stores.
Moreover, every Enjin token has a “melting” feature. For example, if it is used to buy, sell, or mint an NFT, then the NFT can be melted down to its core ENJ-USD value. That makes it very unique among Ethereum-based social games.
If that wasn’t enough, recently Enjin announced on Nov. 4 it had formed the Efinity Metaverse Fund. This fund will raise $100 million to support the growth of its network and will support its “ecosystem partners.” This apparently primarily refers to Enjin’s Polkadot (CCC:DOT-USD) based NFT blockchain called Efinity (CCC:EFI-USD).
This $100 million fund will be from crowd loans to support Efinity in its auction bids on the Polkadot chain. The goal will be to support groups that help integrate Enjin with Efinity, its Enjin wallet, and the NFT.io marketplace for its Efinity NFTs.
The fund will also help fund metaverse projects that use Efinity on Polkadot and integrate Enjin and the token with these projects. The fund will also support gaming projects and even buy back tokens for some of their smaller cryptos.
The bottom line is that the fund will support organizations that provide cross-chain integrations with the Enjin ecosystem. In effect, it’s good marketing spending that promotes the whole Enjin platform.
Where This Leaves Enjin Today
One of the fresh aspects of the Enjin is that it’s deeply embedded in both gaming and NFT tokens. This is the heart of the metaverse universe that is so popular these days.
However, based on measurements kept by DefiLlama.com, ENJ-USD does not show up as a meaningful participant with Total Value Locked (TVL) in either its wallets or any apps. But this might not necessarily be expected with ENJ-USD as it is not really involved in decentralized finance (DeFi).
Most of its integrations are with games, NFTs, NFT related decentralized applications (DApps), and Efinity’s pioneering projects and games. As Coin Telegraph points out, the fund will also support gaming projects built on “all platforms” alongside other areas related to the metaverse, NFTs, and Efinity’s core infrastructure.
Projections for Enjin Coin
This essentially means that it will take time for the Enjin network and the ENJ-USD token to build popularity and value. Over time that will feed into the price.
This implies that Enjin investors should be patient. It’s nice that the token has risen so much in the last three months. But it may take a while for the network to build into this valuation. As a result, don’t be surprised if it takes some time for ENJ-USD to move significantly higher from here.
On the date of publication, Mark R. Hake did not hold any position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Mark Hake writes about personal finance on mrhake.medium.com and runs the Total Yield Value Guide which you can review here.
