What does the growth of the CHZ, MANA and ENJ network say about the NFT space?
Altcoins Chiliz Decentraland DeFi Enjin MANA News News 1 Social Trading View

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

Social analysis was a good way to highlight a market trend and predict which tokens or alternatives would occupy a niche for themselves. The altcoin space has been gaining traction lately, with many anticipating an alternate season. Alas, he hasn’t appeared, at least not yet.

However, one space that had a lot of action was the NFT marketplace, where the three largest blue-chip ERC20 NFTs – Chiliz, Decentraland, and Enjin – took some great strides.

Source: Sanbase

The DeFi space has been on fire since early 2021, and its ecosystem has barely waned. it recently has reached a new milestone: the total number of unique addresses has finally reached the 3 million mark. In fact, the total market capitalization of the top 100 DeFi tokens began to grow rapidly in mid-January and peaked in mid-May ahead of market sales.

Additionally, Google Trends ‘DeFi’ produced interesting spikes that followed, more or less, the same timeline as DeFi’s cumulative market capitalization. Many experts believe that the rise of DeFi has helped oil and gas tokens (NFTs) become more liquid, allowing users to see them as a more realistic investment opportunity.

Source: CoinGecko

What happens to blue NFT chips?

In Chile, Decentraland and Enjin, price movements were almost consistent, with CHZ up 35% from the bottom and MANA up 70%. It is noteworthy that in the period from February to March, Chile showed a rise in prices by 3,690%. Likewise, ENJ rose sharply from $ 0.5 in February to $ 3.2 in April.

More recently, DeFi hit the news again after Jack Dorsey announced that Square was launching a business dedicated to “decentralized financial services” using bitcoin. Many in the field also link the rise of NFT as proof of how this area of ​​finance can lead to promising developments such as the introduction of Web 3.0.

The three tokens in question showed a decent increase in the number of active addresses. A strong surge in mid-June 30, associated with the release of the UFC token on Chiliz, propelled altcoin into the lead in terms of network address activity. The other two gained about 30% around the same time. At the time of writing, there has also been a significant spike in active CHZ addresses.

Active addresses: CHZ MANA & ENJ; Source: Sanbase

While metrics such as active addresses and whale aggregation painted a beautiful picture for these three alternatives, the growth of the network seemed to present an alarming picture. As well as the trading volumes, as they also decreased. In particular, the CHZ had more active whales than MANA and ENJ, although the activity of the CHZ whales appears to be declining. The growth of its network virtually stalled, while prices rose sharply, highlighting a lack of confidence in the strength of the network.

Whale transaction: CHZ MANA & ENJ; Source: Sanbase

Network growth: CHZ MANA & ENJ; Source: Sanbase

This slowdown in network growth on the DeFi board can perhaps be attributed to the multiple blows the network has faced in recent times. The DeFi Education Foundation recently announced the liquidation of half of the million UNI tokens donated to it through UNI control. Likewise, the cross-chain bridge ChainSwap was hit by the second exploit in eight days, just a week ago.

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