Why is Enjin (ENJ) Coin so Cheap?

Last Updated August 5th 2021
6 Min Read

After a spirited price rally earlier in the year, Enjin coin price has started falling again, and this has got crypto investors asking - why is Enjin so cheap? They also need to know if it will bounce back and if it is worth buying, especially at the current low prices.

According to crypto experts, Enjin coin is cheap because of a myriad of factors, chief among them being its overblown maximum token supply, low adoption, and minimal use cases for its tokens have limited possible value appreciation for its token prices.

The fact that Enjin has remained rather unpopular with both speculative investors and blockchain developers has also ensured it trades at relatively low prices, despite having been around for close to four years.  

The low Enjin token supply should not, however, be mistaken for low value because, at the time of writing, Enjin Coin has a market capitalization of $1.152 Billion. This places it at position 70 on CoinMarketCap’s list of most valuable cryptocurrencies. It is well ahead of such highly-priced tokens like Horizen and Bitcoin Gold that are trading at $56 and $54, respectively, but with a market capitalization of less than $1 Billion.

The $1 Billion market cap also represents a more than 60% dip in value, seeing that the cryptocurrency was valued at close to $2.9 Billion at the height of the early 2021 Enjin coin price rally.

This says that the Enjin coin has the potential of posting relatively high prices. But will it rise again in the near future? And even if it does, should you consider buying it today and holding on?

We answer all these questions and tell you everything you need to know about Enjin coins below. Starting with its price history.

Enjin (ENJ) Price History

The Enjin coin is an ERC-20 digital currency for the Enjin gaming community that launched in July 2017. It would, however, only start trading in the open markets in November that year, ending its first day of trading (2nd November 2017) valued at $0.01737 - according to CoinMarketCap. Interestingly, Enjin coin prices have never fallen below this introductory price.

The coin’s launch coincided with the 2017 crypto market rally, which gave it a boost and pushed the ENJ prices above $0.45 on 7th January 2018. Throughout 2018 however, Enjin coin prices went on a freefall, losing more than 90% of its value to trade around $0.02 in mid-December that year.

Throughput 2019 and 2020, the Enjin coin prices were subjected to multiple meek and short-lived bull traps. On a few occasions, its price rose above $0.2 but quickly slid back to the $0.1 range.

Nevertheless, Enjin coin stormed into 2021, trading at $0.136 and didn’t start rallying until mid-January when its prices rose above $0.3. In the two months that followed, Enjin embarked on a spirited and its steepest price rally yet, which saw it climb and set an all-time high price of $4.00 on 9Th April.

Close to four months later, the coin has lost 65% of this peak price and is, at present, selling for $1.38. It has a circulating supply of 834 million ENJ coins and a maximum supply of 1 Billion tokens.

So, why does the crypto market consider it cheap?

Check Out: Is It Worth Investing In Enjin?

Why is Enjin (ENJ) so Cheap?

At the moment, one may dare say that Enjoin coin is cheap because the crypto market crashed and led to a massive loss of value for all cryptocurrencies. Looking at the Enjin price chart, you will realize that since the market crashed in mid-May, the altcoin prices have been on a slow but sustained decline and even dipped below $1 severally. One may, therefore, conclude that while the upward momentum had slowed down as the coin headed to May 2021, its price descent has been aggravated by the market crash.

So if the market crash is making Enjin cheap in 2021, what had kept within low level between 2017 and 2020, you might ask?

Well, two key factors - low uptake and large supply.

Enjin is a specialist crypto coin. Unlike such popular coins as Bitcoin and Ethereum or hyped entrants like Cardano and Polygon that seek to revolutionize the internet, Enjoin is a niche crypto technology targeting the gaming industry.

But the industry is yet to fully embrace blockchain and crypto technology. This, plus competition from the likes of Tron, has contributed significantly to the low adoption of Enjin altcoins, which - in turn - leads to low uptake by investors.  

Enjin coin’s maximum supply of 1 Billion tokens has also played a key role in keeping its prices at a minimum. Looking at most of the highly-priced and most used cryptocurrencies, you will notice that a majority of them have relatively low maximum supply limits. Bitcoin’s supply, for instance, is capped at 21 Million coins.

With a limited supply, the high demand for the coins has helped push the token prices up. When it comes to Enjin, however, the opposite is true. It has a huge supply but limited use cases, which means low demand. There is, therefore, is no incentive to drive these token prices up.

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Should I Buy Enjin (ENJ) While it is Cheap?

You may consider buying Enjin coin because it is indeed cheaper today than few months ago - but only as a long-term investment.

As the crypto industry matures and blockchain technology penetrates the corporate world, it is highly likely that Enjin will take a significant market share of the gaming world. It is also venturing into other fast-growing blockchain-related niches like NFT that may help spur its popularity, increase the demand for ENJ coins, and help raise its prices. But there is no clear timeline when either of these will happen, how long it will take for Enjin token prices to start growing again, or how high up they can get.

Is Enjin (ENJ) Worth Buying?

Enjin is worth buying to long-term investors because of its potential for value gain years down the line and to short-term traders because of its volatile price action. Experts are also confident that both the Enjin network and ENJ coin are poised for significant value gains in the future, which are then expected to trickle down and reflect in your investment.

The Wallet Investor, for instance, expects the value of ENJ coin to increase by around 579.65% in the next five years to reach $9.053. Therefore, if you invest $1,000 in the coin today, your investment may grow to $5,796.50 by this time in 2026.

Read Also: Why Enjin Coin Will Skyrocket

Will Enjin (ENJ) Bounce Back?

It is highly likely that Enjin coin value will bounce back and possibly break above their current all-time high within the next few years. The crypto community is convinced that even though the current developments on the Enjin crypto network may take time to have an impact on the ENJ token price, the changing crypto market dynamics will help inspire the next Enjin price rally.

Conclusion: Why is Enjin so Cheap?

Different factors have ensured that Enjin token trade at relatively low price at different times in the recent past. At the moment, the ENJ’s cheap price may be directly attributed to the May 2021 crypto market crash and the ongoing FUDs in the crypto industry. Before this, Enjin’s low prices could have been attributed to such factors as the low adoption of the coin and its overblown maximum supply.

Moving forward, however, the crypto market is confident that Enjin coin prices will rebound and continue rising. They argue that it is a good long-term investment and that some of the factors that will play a crucial role in its future value appreciation include the ongoing developments within the Enjin network and future market-wide price rallies. 

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