Altcoin
Can Enjin Coin’s 10% rally provide the necessary fuel to aid further recovery
Amidst mixed signals from the broader market, Enjin managed to mark a green candle, leading the few altcoins that are rallying today. But when it comes to the altcoin, in particular, the question arises if this slight rise will be enough to draw investors’ interest back in the market.
Enjin needs more fuel
As soon as the prices began falling, ENJ selling in the market started rising. Enjin investors in the true Shiba Inu fashion went ahead and grabbed the first opportunity they could find to save themselves from losses at the cost of the network.
As a result, the total supply on exchanges in the span of 3 months has risen from 390 million ENJ to 422 million ENJ, totaling $58.24 million (32 million ENJ).
Enjin’s supply on exchanges | Source: Santiment – AMBCrypto
However, investors only saved themselves from losses but did not actually exit the network as no deviation has been observed in the total addresses on-chain.
In fact, the 41.16% recovery marked by Enjin over the month will be essential in bringing back investors’ interest, especially with the help of the 10.67% from today.
Enjin price action | Source: TradingView – AMBCrypto
As it is, the risk-adjusted returns for the asset are at their highest in more than four months, which makes it apparent that Enjin will be good at providing returns. Plus, this will also be enough to grab the attention of new investors.
This could further help the altcoin in improving its standing in the market. Just last month, Enjin revived its market value into the positive zone after suffering in the negative zone for almost a week.
Enjin MVRV ratio | Source: Santiment – AMBCrypto
Although the bigger picture for the altcoin should be the prospect of preferable adoption over its competitive altcoins. If you look at the rate the network is growing at, adoption of the asset becomes concerning. Thanks to the gradual decline, the indicator is at its lowest in over a year.
Enjin network growth | Source: Santiment – AMBCrypto
Thus should Russia’s invasion of Ukraine come to a halt and the global economy improve by Q2, the crypto space would too grow by a lot, and in return, cryptocurrencies such as Enjin would also benefit from the increased adoption.
