Enjin Coin and Immutable X prices are at great risk as the non-fungible token (NFT) industry is trapped. The price of ENJ is down more than 87% from its all-time high, bringing its total market cap to approximately $610 million. IMX, on the other hand, has seen a price drop of over 85% from its all-time high.
Are NFTs Dying?
Enjin and Immutable are major blockchain projects that hope to solve some of the most pressing challenges faced by NFT manufacturers and buyers. Unlike Ethereum, Cardano, and Bitgart, their entire ecosystem is all about NFTs.
Enjin runs a platform known as Efinity which enables people to create and sell NFTs. On the other hand, Immutable X is a layer 2 platform which increases the speed and reduces the cost of Ethereum NFT platforms.
Therefore, due to the collapse of the NFT industry, the two blockchains are at a greater risk. Recently, OpenSea, the largest NFT marketplace, announced that it would lay off a significant number of its employees as volumes decline. In a statement, the company’s CEO attributed the situation to the current crypto winter.
Now, new data published by Balthazar This shows that the monthly sales volume of NFTs has declined sharply over the past few months in major markets such as OpenSea, Magic Eden, LookRare and Solanart. NFT sales volume in July was only $676.73 million, down from January’s high of $6 billion. Still, the July sales were higher than the sales made in 2021.
According to the report, OpenSea is expected to have sales of over $26.56 billion at the end of the year, up from a 2021 high of $13 billion.
Nevertheless, analysts believe that the volume of NFTs will continue to decrease as interest rates and inflation continue to rise. Also, liquidity will remain a challenge as demand eases. Moreover, most of the people who bought NFTs in 2021 and earlier this year have suffered significant losses.
Enjin Coin Price Prediction
The daily chart shows that the ENJ price is moving sideways over the past few days. It is trading at $0.64, where it has been recently. As a result, it is oscillating between the 25-day and 50-day moving averages.
It has also created a narrow channel which is shown in green. Hence, there is a possibility that the coin will have a major bearish breakout as sellers target the next major support level at $0.35.