The digital asset space is increasingly accommodating the new demand for non-fungible tokens growing prominent over the past few months. These tokens are in high demand as people might be experiencing Fear Of Missing Out (FOMO) due to the sudden creation of NFT projects all over the ecosystem. It’s safe to note that some events have helped his trend blow into a full-fledged culture as Beeple made one of the world’s most expensive artwork sales.
The crypto artist has had numerous digital artwork sales, but his latest, which he sold as an NFT, got him $69 million for his work. Other notable trends include Jack Dorsey’s auctioning off his first-ever tweet, which attracted auctions from big players in the community, including Justin Sun.
Reasons for Enjin’s price rally
Many factors could have helped Enjin skyrocket within a short time, especially with the new demand for NFT-related projects. The sector went from just being a part of the industry to being regularly on crypto media and other notable investment platforms. Digital collectibles are currently one of the most wanted crypto-related pieces, and this would likely continue as the industry has shown that it’s here to stay.
Enjin has been one of the sector’s highest performers and has added much value over the past few months following the new non-fungible tokens trends. It’s safe to note that the project’s co-founder, Witek Radomski, has been one of the prominent players working towards developing a new ERC standard.
This standard would improve the current situation, with NFTs being one of the blockchain networks. Recent information reveals an unexpected price rise in Enjin, as the crypto has rallied by over 800% over the past few months. The asset moved from its previous value of around $0.34 in late February to around $3 in the current times. The asset is not done and could have more unexpected gains in time to come.
The crypto has recorded a high amount of trading volumes, which could be one of the major reasons for the sudden price growth. Things changed for Enjin this month, especially after the information about JumpNet. This new creation is a private Ethereum network that utilized proof-of-authority as opposed to Ethereum’s proof-of-work.
Ethereum network remains host to many projects
This movement changed things, especially with the rise of unbelievable gas fees charged for transactions within the system. Ethereum has faced more scalability problems as it becomes one of the most crowded areas for the most digital asset as NFT and DeFi projects continuously crowd the area. This has led to the increased gas fee for the Ethereum blockchain.
Another factor that has contributed to the crypto’s growth is the increased listing on crypto exchanges. This has helped the asset get exposure to new demands and record higher volumes within a short time. The spike began around late February when two prominent exchanges, FTX and Crypto.com, added the digital asset to their cryptos list. Asides from these reasons, another notable reason is the new demand for non-fungible tokens, which has improved many things for the projects within that space.