Is Enjin (ENJ) Worth Buying In 2021?
After a highly successful start of the year, the May 2021 crypto market crisis has sent Enjin coin prices tumbling, but one question remains unanswered; is Enjin worth buying in 2021?
Despite a rather disappointing past price performance, the Enjin coin has performed exemplary in the year-to-date, and it still is considered one of the most promising altcoins today. Crypto analysts and investors are confident that the changing crypto industry landscape and the ongoing developments within the Enjin network will keep the altcoin’s price rising in the foreseeable future, which makes it a worthy addition to every investor’s crypto portfolio.
Having started the year trading at around $0.13, the altcoin's value has appreciated by more than 1200%+ to trade at $1.65 today. At its peak in April 2021, the coin hard posted a value jump of more than 3000$ to reach $4.0. Moving forward, and as the crypto market recovers, there is a lot of optimism that the coin will ultimately resume its early 2021 price rally and break above the current all-time high.
But how high up can Enjin coin prices reach before the end of the year? More importantly, what are some of the factors influencing the coin's newfound popularity and is it worth buying?
We will be answering all these questions in this Enjin coin investment guide, tell you why you should consider buying the altcoin today, and brief you on the risks associated with buying the ENJ coin at the moment.
First, though, we seek to understand what an Enjin coin is and how it works.
What Is Enjin (ENJ)?
Enjin is the native taken for the Enjin network, a decentralized social gaming blockchain on which users can create websites, interact with one another, and host virtual stores. The altcoin is, therefore, used to facilitate transactions within the network and give the assets created on the network a reserve value.
The coin launched in 2017 and ended its first full day of trading on 2nd November 2017, selling for t $0.01737 - according to CoinMarketCap.com. It is an ERC-20 token that was originally hosted on the Ethereum blockchain before Enjin network launched its mainnet in mid-2018.
Unlike most other cryptocurrencies whose warm welcome sent their prices soaring soon after launch, Enjin has had a rough time carving out a niche for itself in the crypto industry. For more than three years, it has posted a rather depressing price action and only shot to the limelight after its unexpected price rally in the first half of 2021.
So what has changed about Enjin coin, and why is it so popular today?
Why Is Enjin (ENJ) So Popular Right Now?
The popularity that Enjin coin is currently enjoying can be traced back to its close association with the NFT technology. For months now, crypto analysts and investors have been arguing for the case of NFTs being the next big thing in the crypto industry, taking over from the ICO craze and the recent DeFi explosion.
It should be noted, however, that Enjin was among the first blockchain technologies to embrace NFT technology by emending the ENJ coin to the assets mined on their network, effectively giving them all a reserve value. It, therefore, is highly probable that the crypto community and most corporate brands looking to venture into the NFT niche will turn to the Enjin network when the NFT technology starts gaining momentum.
Other factors that can be said to have played a crucial role in influencing Enjin coin’s newfound popularity include:
Enjin network developments
Earlier in the year, the Enjin network developers announced that they were upgrading their platform and turning it into a multi-blockchain ecosystem by launching two new blockchains.
The first, dubbed Efinity, will be dedicated to facilitating NFT transactions, while the second, named JumpNet, will be aimed at improving the platform’s scalability. The launch of the two blockchains has played a crucial role in turning the crypto community's attention to the Enjin network.
Expected NFT explosion
For months now, there has been a lot of chatter within the crypto community about NFTs being the next big thing, with most believing that they are about to blow up. Given Enjin network's dalliance with the technology and the recent upgrade of its ecosystem to be more NFT-ready, it has attracted a lot of attention and demand to its altcoins, which was instrumental in inciting the ENJ token price rally.
Appeal to speculative investors
Enjin coin prices reached $1 for the first time since their launch. Between January and April 9th 2021, the coins' value appreciated by more than 3000%. On the year-to-date scale, the coin is up by more than 1200%. Such an attractive price action has drawn in investor interest from both short-term day traders who are looking to leverage its volatile daily price action and long-term investors who believe the token prices will reach unprecedented levels
But are upgrades to the Enjin ecosystem and soaring prices enough reason to invest in the Enjin coin today?
Should I Buy Enjin (ENJ)?
You may consider buying Enjin tokens because most crypto analysts, current ENJ coin investors, and the crypto trader sentiments are all bullish on the altcoin’s future price action. They are convinced that Enjin altcoin prices will continue rising and that it will be way more valuable in the future than it is today.
You may also consider investing in Enjin coins today if you believe that NFTs are the next big thing and that the ongoing developments within the Enjin ecosystem will give the blockchain and its tokens a competitive advantage when the technology eventually becomes a thing over the next few years.
These factors above notwithstanding, you also need to ask if this is the best time to buy Enjin coins?
Well, the volatile price action of different cryptocurrencies, as well as the unpredictability of the crypto market, have taught us that there is never the best time to buy a crypto coin. And before interpreting Enjin coin’s currently low prices as its dip and committing your life’s savings to the asset, there are a few things that you need to do to protect your investment from possible risks.
First, consider studying the Enjin ecosystem and how it works. Secondly, familiarise yourself with all the factors influencing the altcoin’s price action. Only invest if convinced that Enjin network and crypto market conditions support an up-trending Enjin coin price action.
Don't Miss: Is It Worth Investing In Enjin?
So, Is Enjin (ENJ) Worth Buying In 2021?
Well, predicting the price direction that a cryptocurrency will assume in the future can be quite a daunting task. It, therefore, is hard to tell if Enjin coin prices will rise or fall in the next four months or what the altcoin will be worth by the end of December 2021. Nevertheless, most analysts and price prediction websites are convinced that the Enjin token prices will rebound and that the altcoin’s value may be higher at the end of the year than it is today.
The updated technical analysis of the Enjin coin by the highly reputable DigitalCoinPrice, indicates that the coin prices will rise marginally in the next four months. At the end of the year, the platform expects the altcoin to trade at around $2.51.
The CryptocurrencyPricePrediction website often comes off as the most optimistic digital price prediction platform. Its technical analysis also points to a rebound and steady climb for the altcoin prices, and it expects the coin to sell for $3.81 by the end of the year before breaking above its current all-time high in January 2021.
Why Should You Buy Enjin (ENJ)?
When it comes to the crypto industry and crypto investing, there often are no clear-cut convictions on why you should invest in one altcoin and not the other. But if you are looking for a straightforward reason on why you should consider investing in Enjin coin today, we have come up with three. They include:
Massive potential for future growth
Enjin coin is currently trading at relatively low prices. Yet, the crypto market is convinced that the altcoin is poised for an unprecedented value jump in the next few years. By buying the dip today, you could be setting your investment up for unimaginable growth in the next few years.
Promising blockchain technology
Though focused on the gaming and entertainment industry, the Enjin blockchain is still considered one of the most innovative and promising technologies. It is one of the few networks that have laid the groundwork for supporting NFTs. Therefore, if they truly become the next big thing, both the blockchain and the Enjin coin stand to benefit immensely from increased community interest and rising prices.
It is a liquid investment
The Enjin coin, like most other cryptocurrencies, is hugely liquid. It is listed on virtually all the major crypto exchanges and can be converted to fiat cash or any other cryptocurrency easily.
Risks Associated With Enjin (ENJ) Investments
In getting here, you have read and understood what Enjin coin is and why you should be investing in it today. In this next section, let us go over two primary risks associated with an Enjin coin investment.
Like all other cryptocurrencies, the Enjin coin is exposed to unprecedented volatilities and unexplainable price jumps. Only risk-tolerant crypto traders are advised to invest in Enjin coin, and even they must are encouraged to only invest what they can afford to lose.
The Enjin ecosystem banks heavily on its involvement in the gaming/entertainment industry as well as its readiness for the highly anticipated NFT explosion to drive its prices in the future. But it is not the only player in any of these niches as it faces stiff competition from the likes of the Tron network and Ethereum. Moving forward, and as the mass adoption of NFT technology gathers pace, experts are convinced that this competition will only exacerbate.
Conclusion: Should You Be Buying Enjin (ENJ)?
Crypto experts and the crypto market at large are convinced that Enjin has what it takes to keep pushing its token prices upwards in the foreseeable future. They are convinced that the coin will be more valuable at the end of the year than it is today.
This, plus the fact that it has a hugely promising blockchain technology, makes the ENJ token worth buying. As always, though, only invest what you can afford to lose and, where possible, engage the services of a professional crypto trader.
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