Categories: Uncategorized

What does the network growth index of CHZ, MANA and ENJ say about NFT space?

Social analysis is a great way to learn market trends and predict which tokens or altcoins are gaining a niche for themselves. Lately, the altcoin space has been doing well as many predict the old season. But that’s not the case, at least not yet.

The area that has seen a lot of prominent movement, however, is the NFT market, where the three largest ERC20-NFT “blue chips” – Chiliz (CHZ), Decentraland (MANA) and Enjin (ENJ) – are making some strides.

Source: Sanbase

The DeFi space has been doing well since early 2021, although the ecosystem is showing few signs of cooling. It recently reached a new milestone: the total number of unique addresses finally reached 3 million. In fact, the total market capitalization of the top 100 DeFi tokens started growing rapidly in mid-January and peaked in mid-May before the market sold out.

Additionally, DeFi has generated interesting spikes on Google Trends that follow DeFi’s cumulative market capitalization chart. Many experts argue that the rise of DeFi has made non-fungible tokens (NFTs) more liquid, allowing users to view them as a more realistic investment option.

Market capitalization of the 100 best DeFi-Coins | Source: Coin Gecko

What’s wrong with the blue chip NFT?

The price movements of CHZ, MANA, ENJ are almost coordinated. CHZ is up 35% from the bottom and MANA is up 70%. In particular, CHZ saw a 3,690% increase between February and March, and ENJ rose from $ 0.50 in February to $ 3.2 a month.

CHZ price table | Source: Tradingview

More recently, DeFi has picked up pace after Jack Dorsey announced that Square was starting a company focused on “decentralized financial services” with Bitcoin. Many in the industry also see the growth of NFT as evidence of how this financial sector can lead to promising developments such as the introduction of Web 3.0.

The above three NFT tokens have significantly increased the number of active addresses. A June 30 surge related to the issuance of UFC tokens on Chiliz put CHZ at the forefront of on-chain addressing activity. The other two tokens were up around 30% over the same period. At the time of going to press, the number of active CHZ addresses also rose sharply.

Company address: CHZ (Pink), MANA (red), ENJ (Yellow) | Source: Sanbase

While metrics like active addresses and whale gathering paint a good picture for all three, the network growth metric seems to tell a worrying story. Likewise, the trading volumes, as they are decreasing. Most notably, CHZ has more active whales than MANA and ENJ, although whale activity appears to be declining in CHZ. Its network growth index is almost stationary, while the price increases show a lack of confidence in the strength of the network.

Network development index: CHZ (Pink), MANA (red), ENJ (Yellow) | Source: Sanbase

Whale trade: CHZ (Pink), MANA (red), ENJ (Yellow) | Source: Sanbase

The slowdown in network growth across the DeFi board is due to the many negative news so far. Recently, the DeFi Education Fund announced the liquidation of half of the 1 million UNI tokens donated through UNI governance. Likewise, ChainSwap’s cross-chain bridge was attacked for the second time in 8 days, just a week ago.

At home at home

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

14 minutes ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

44 minutes ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

2 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

2 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

3 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

5 hours ago

This website uses cookies.