Why is Enjin-Linked Token $EFI Pumping Over 330%?

Efinity (EFI), a cross-chain NFT blockchain developed by Enjin Network, has recently experienced a substantial price surge. The blockchain project also has several key development and strategic initiatives.

Following the announcement, the EFI token saw a remarkable increase of over 330%, trading at $0.8963. However, at press time, the asset had slightly declined. Meanwhile, the crypto asset’s trading volume saw a sharp rise of over $2.7 million.  Notably, the increase in EFI trading volume indicates strong investor interest and confidence in the asset. The digital asset also has a market capitalization of over $77. 9 million.

Enjin Blockchain Integrates Stablecoins

The announcement revealed that the Enjin Blockchain is advancing its interoperability framework by integrating stablecoins such as USDC and USDT via its MultiToken Pallet and the Hyperbridge protocol. The integration is currently deployed and active on the Hyperbridge testnet.

Hyperbridge is a decentralized interoperability coprocessor built by Polytope Labs, with backing from the Web3 Foundation and Scytale Digital. It enables permissionless cross-chain communication by utilizing cryptographic consensus and verifiable state proofs, ensuring secure and trustless data exchange between blockchain networks.

While Enjin Blockchain’s MultiToken Pallet serves as a core infrastructure layer of the Enjin Blockchain, it supports the minting, management, and transfer of token types ranging from 1:1 NFTs to fungible tokens with large or unlimited supply. Enjin’s multi-token standard also offers compatibility with advanced chain architectures such as matrixchains.

Interestingly, the interoperability coprocessor model leverages off-chain computation for complex tasks and on-chain cryptographic proof verification, enabling users to deposit digital assets like USDC or USDT on Ethereum or Binance Smart Chain into Hyperbridge’s vault and subsequently utilize a corresponding MultiToken asset on the Enjin Blockchain. Hyperbridge maintains a 1:1 asset ratio and prevents duplication.

Efinity Migrates to Enjin Blockchain

Meanwhile, in 2021, Efinity emerged as an ERC-20 token with a fixed supply of 2 billion. It eventually became the native token of the first NFT-focused parachain on Polkadot. It was also the sixth parachain in the network.

Years later, a significant transformation occurred. Following a governance referendum on June 29, 2023, the Efinity parachain transitioned to the Enjin Blockchain. This shift formed the Enjin Relaychain and Enjin Matrixchain, where EFI was seamlessly converted to native ENJ.

Additionally, at the launch of Enjin Blockchain, 1.75 billion ENJ were minted. Out of this, 1 billion was allocated to ERC-20 ENJ holders transitioning to the new chain. About 500 million were dedicated to migrating EFI holders, and the remaining 250 million were reserved to reward early governance participation.

To ease the transition to its native ecosystem, Enjin Blockchain includes a claims pallet that lets users convert their ERC-20 ENJ tokens at a 1:1 ratio and ERC-20 EFI tokens at a 4:1 ratio into ENJ. Interfaces like the Enjin Wallet help facilitate this process by connecting to the pallet directly.

Built on Substrate’s robust proof-of-stake architecture, Enjin Blockchain was designed to empower its existing ENJ community. It invites them to help secure the network and shape its future through governance and staking. As a reward for early participation, the blockchain reserves 250 million ENJ for governance incentives, which will be released gradually in 10 equal phases.

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