This Pump Ain’t Over: Why Enjin Coin Is Still Bullish After Galaxy S10 Confirms ENJ
Enjin Coin was the beneficiary of 67% growth in a single day moving into Friday, shortly after rumours surrounding its addition to the Samsung Galaxy S10 were confirmed.
The ENJ coin price spiked 93% at its peak before undergoing a large pullback, while the coin’s trade volume surged to a new all-time high of $155 million. That’s up from the previous all time trading high of $127 million just last week when the Samsung rumours initially landed.
While Friday’s price pullback might offer a more inviting buy-in point for those willing to throw themselves on board the Enjin-express (brought to you by Samsung), that’s not the only factor behind the title of this article.
So let’s take a look at a few reasons to remain bullish on Enjin Coin, in spite of its already dramatic growth over these last couple of weeks.
Blockchain Gaming Is Still In Its Infancy: SDK for Unity Developers on Ethereum
Besides the Samsung Galaxy S10 rumours, Enjin also grabbed headlines earlier this week when it announced the pending release of SDK tools for developers of the Unity gaming engine.
The Software Development Kit is set for launch on March 14th, and will allow developers of one of the most utilized game engines to start fiddling around with blockchain gaming. As summed up in a recent Enjin blog post:
“Unity is the world’s most popular game engine, home to over 4.5 million developers and responsible for 28 billion game installs on 3 billion devices… On the 14th of March, we will launch the Blockchain SDK to the Unity Asset Store—putting Enjin’s powerful blockchain game development tools into the hands of millions of Unity developers.”
According to the blog post, the Enjin SDK was contributed to by multiple former AAA gaming developers, who worked for the likes of Activision, Bioware and EA. With the SDK set to demo at GDC – Game Developers Conference – in just over a week’s time, this could prove to be an opportune moment for Enjin to capitalize on the recent publicity it just gained via the Samsung Galaxy.
Enjin’s CEO Witek Radomski Might Have Solved the Gaming Scalability Problem
Remember the big Ethereum network slowdown of 2017? The booming popularity of Cryptokitties meant that normal ETH transactions were being backlogged while the network was throttled with cartoon cats.
This highlighted Ethereum’s scalability problem, and in the process presented a puzzle to be solved. The ERC-721 token used in blockchain collectibles is non-fungible and unique, but its uniqueness means that every new transaction in a game, even one as small as changing a character’s hat or weapon, requires a new smart contract to be written.
With that in mind, you can see how it would be impossible to build a Fallout or World of Warcraft game on Ethereum’s current ERC-721 architecture. The sheer number of in-game items would make it impossible.
This is where Enjin Coin comes in. Enjin’s creator, Witek Radomski, created a new type of ERC token: the ERC-1155 – the new crypto item standard according to Enjin.
Instead of sending a new transaction for every move made in-game, multiple transactions are instead packaged into one larger tx before being sent to the blockchain for confirmation. This is a simplified explanation, however more can be read on ERC-1155 here, from which:
“ERC-1155 takes a new approach to defining tokens. Items are now stored in a single contract with the minimum possible amount of data needed to distinguish the token from other ones. The contract state contains configuration data per Token ID and all the behavior governing the collection.”
I’ve been following the development of ERC-1155 since last year, and it looks like a legitimate solution to expanding the scale of blockchain gaming. As gaming on the blockchain increases in general, attention might once more fall on Enjin Coin. In the meantime, Enjin is pushing ahead with its own games development – a highlight of which can be viewed here.
WAX – Contact High for Gaming Blockchains
Enjin Coin exploded in the Asian markets, as evidenced by it being the most traded crypto on Upbit in the last twenty-four hours. Another Korean exchange, Bithumb, also lists ENJ/KRW as its third most traded pair, some way ahead of its Bitcoin and Ethereum pairs.
I mention the Korean connection because there’s an idea that the Asian trading mentality differs from that of the Westerner’s. Supposedly, when Asians see a booming market, instead of jumping directly on whatever asset might be pumping at that moment, they instead look for similar but cheaper assets in the same category.
This might just have been evidenced recently when another blockchain gaming project – WAX – experienced something of a contact high. WAX spiked 28% over the previous week, just as Enjin’s own hype was heating up.
Coincidence, you say? Perhaps, although the ‘Asian theory’ holds up when examining WAX – three of WAX’s six most traded pairs happen to be against KRW, with Korean won trades accounting for 58% of the coin’s $2.3 million daily volume on Friday.
The Start of a Short/Mid-Term Price Trend?
The chart below shows the last two weeks of Enjin’s price movements. The first spike on Feb 25th represents the spread of the first Samsung rumours. The second is March 7th’s pump which saw the coin price rise from $0.098733 up to $0.190851 – 93% growth – before falling back to $0.165364.
Zooming out to the monthly view shows that ENJ has been climbing steadily since early February, long before so much as a rumour came out of the Samsung Galaxy camp. Enjin Coin’s gains for the past month stand at 610%, but attention only really fell on it when the S10 rumours arrived.
Recording two new all-time highs for trade volume within the space of twelve days suggests new money has just found its way to Enjin Coin. I expect some of it to drop back out at opportune moments, but right now Enjin’s immediate future is looking rosier than ever.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.