Users and developers of the gaming technology platform Enjin have created over 1 billion blockchain assets by committing around $10 million in Enjin coin (ENJ) to mint the Ethereum-based ERC-1155 tokenised in game items.
The figures suggest that the utility of ENJ is being established as interest in the gaming sector continues to grow.
Enjin assert that there are over 2.7 billion gamers worldwide and point to research suggesting that the gaming industry’s annual revenue will likely rise from the $50 billion today to $189 billion by 2025.
Real World Value in a Digital World
The amount of ENJ infused into an asset is chosen by the developer who creates it and can range from minuscule amounts to a significant sum. The most-valued asset to date contains 1,155,777 ENJ (now worth approximately $220,000) and is known as the Monolith.
By infusing each asset minted on the platform with an amount of ENJ, the creators insert certified, real world value into the item that ensures a level of consumer trust and establishes demand.
As the platform attracts more users, market forces are anticipated to drive demand and so early creators who staked larger amounts of ENJ at the minting stage would expect to see their item’s value increase.
Because game players understand the value metric, they are reasonably confident of re-gaining some of their liquidity even if a particular item does not meet their expectations.
Last year, Blockchain Ventures invested in Enjin after being attracted by the project’s potential profitability and at the time highlighted “The Enjin token economic model, where Enjin Coin is locked within virtual-in game items and non-fungible tokens (NFTs) is something we hadn’t seen before. This facilitates both the price discovery and value recovery that have been challenging for NFTs.”
