Supply is a factor that directly affects the price in every field, and its impact on the price of cryptocurrencies is felt very quickly. Investors, having the ability to trade 24/7, immediately price in developments that will change the market balance of the cryptocurrency in question. The latest announcement for ENJ Coin has encouraged sellers and led to a price drop.
Following the token migration that started on September 13, the Enjin team announced a reward pool to secure the Enjin Blockchain. Accordingly, 250 million Enjin Coin (ENJ) will be distributed in 10 equal installments starting from January 15, 2024.
To encourage the community to stake, the team announced a significant incentive that will increase the circulating supply. If there are no stakers in PoS networks, the network is not secure, and high participation is important in this regard. Rewards will start from the 3,247,000th block and are expected to be released in 10 equal installments starting approximately from January 15, 2024. Each time, 25 million tokens will enter circulation and create a selling risk.
The Enjin Blockchain currently consists of the Enjin Relaychain and Enjin Matrixchain, and transactions are processed on the Enjin Relaychain. Enjin Relaychain transactions are processed by validators. To ensure the security of transactions, they must be processed by multiple validators. The Enjin Blockchain has an annual token inflation rate of 4.8927482% to support network management, and new tokens are released each period.
At the time of writing, ENJ Coin was finding buyers at $0.311 and had turned its direction downwards after reaching a peak of $0.37 with BTC sales. The twice-tested $0.3 support level is strong and can stay in place for now unless BTC suffers a significant loss. However, if the support is lost, sales could continue down to $0.275 and $0.2.