Enjin coin prices have started plummeting again after a strong price surge earlier this year. This had crypto investors wondering why the coin is so cheap. They also want to know if it will recover and if it is still a good investment. Especially at these cheap costs.
According to crypto experts, Enjin coin is cheap due to a number of problems, the most notable of which are its overly large maximum token supply, poor adoption, and restricted use cases for its tokens, all of which have hampered the token values’ potential value appreciation.
Enjin, although being operational for nearly four years, trades at relatively low prices due to its lack of popularity among both speculative investors and blockchain developers.
The low quantity of Enjin tokens should not be confused with poor value, as Enjin Coin has a market valuation of $2.575 billion at the time of writing. CoinMarketCap’s list of most valuable cryptocurrencies is now ranked 67th. It is far ahead of such expensive tokens as Horizen and Bitcoin Gold, which are currently selling at $83.57 and $64.32, respectively, but have a market capitalization of less than $1 billion.
This indicates that the Enjin coin has a high price potential. But, in the near future, will it increase again? Should you buy it now and hold on, even if it does?
Enjin Price History
The Enjin coin is an ERC-20 digital currency that was introduced in July 2017 for the Enjin gaming community. However, it would not begin open market trading until November of that year. With its first day of trade (November 2nd, 2017) priced at $0.01737, according to CoinMarketCap. Enjin coin prices have never dropped below this beginning level.
The coin’s introduction coincided with the 2017 cryptocurrency market boom. Giving it a boost and pushing ENJ values beyond $0.45 on January 7th, 2018. Throughout 2018, however, Enjin coin prices plummeted, losing more than 90% of their worth to trade at $0.02 in mid-December.
In 2019 and 2020, the Enjin coin prices were prey to a number of weak and short-lived bull traps. Its price soared beyond $0.2 on a few occasions but rapidly fell back to the $0.1 area.
Despite this, Enjin currency exploded into 2021, trading at $0.136, and didn’t start rallying until mid-January, when prices surpassed $0.3. In the two months that followed, Enjin proceeded on its most ferocious and steepest price rally ever. It climbed to an all-time high of $4.00 on April 9th.
The coin lost 65 percent of its peak value and sold for $1.38 nearly four months later. Enjin has recovered and is currently trading at $3.09 at the time of writing. It has an 834 million ENJ circulating supply and a 1 billion token maximum supply.
Should I Buy Enjin While it is Cheap?
It would be best if you bought Enjin coin because it is currently cheaper than it was a few months ago – but only as a long-term investment.
Enjin poises to take a substantial piece of the gaming sector as the crypto industry expands and blockchain technology penetrates the corporate world. It’s also branching out into other fast-growing blockchain-related industries like NFT, which might help it gain traction, increase demand for ENJ coins, and improve prices. However, there is no clear schedule for when either of these will occur, nor is there any indication of how long it will take for Enjin token prices to begin rising again or how high they can increase.
Is ENJ Worth Buying?
Long-term investors might consider Enjin, while short-term traders should avoid it because of its erratic price movement. Experts also believe that the Enjin network and the ENJ currency will have large value increases in the future, which will be reflected in your investment.
According to Wallet Investor, the value of the ENJ coin will rise by 579.65 percent in the next five years, to $9.053. As a result, a $1,000 investment in the coin today might rise to $5,796.50 by 2026.
Will ENJ Bounce Back?
Within the next few years, it is quite likely that the Enjin coin value will rebound and possibly break above its current all-time high. Even while recent advances on the Enjin crypto network may take time to affect the ENJ token price, the crypto community is certain that changing crypto market dynamics will help drive the next Enjin price increase.
Why is ENJ so Cheap?
Enjin tokens have traded at a relatively low price in the recent past due to a variety of issues. The ENJ’s current low price can be directly related to the crypto market meltdown in May 2021 and the industry’s continued FUDs. Previously, the low pricing of Enjin could attribute to reasons such as the coin’s limited adoption and an overinflated maximum supply.
However, the crypto market believes that Enjin coin values will recover and continue to rise in the future. They say that it is an excellent long-term investment and that continuous advances inside the Enjin network. As well as potential market-wide price rises, will be key determinants in its future value appreciation.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”