What happened
The metaverse is red-hot right now, and Enjin Coin (ENJ 0.73%) has quickly become a cryptocurrency investors have looked to as a way to play the growth of this space.
However, Enjin coin has been on the decline of late. Since Friday's close, ENJ has declined 14.7% as of 4:15 p.m. ET Monday. Additionally, over the past week, this token has lost more than 30% of its value.
A market-based cryptocurrency sell-off this weekend has sent most tokens lower, in indiscriminate fashion.
Image source: Getty Images.
So what
Enjin Coin soared in November, following an announced move from Enjin to launch a $100 million metaverse fund. This Efinity metaverse fund is aimed at supporting various projects built on top of the Enjin and Polkadot infrastructure.
For those looking at the future of blockchain and crypto-related metaverse projects, Enjin Coin has become a go-to option for investors. Over the past year, Enjin Coin has appreciated more than 1,700% and continues to be one of the tokens investors considering the growth of the metaverse hold on to.
However, this recent market rout has provided quite the discount for investors to consider. The dip of 25% from Friday's close, as of today's lows, could turn out to be a great buying opportunity for those bullish on metaverse gaming. Currently, Enjin Coin remains nearly 45% below its all-time high set just a few weeks ago.
Now what
There are many reasons why investors are keying in on the metaverse as the place to invest right now. The rise of yet another COVID-19 variant provides yet another catalyst for stay-at-home technologies to soar. As a cutting-edge cryptocurrency network focused on the metaverse, there's a lot to like about how Enjin Coin is positioned right now.
Of course, this recent market-based volatility in the cryptocurrency space may turn out to be protracted. Accordingly, timing the bottom with this correction may be difficult to do. Patience is the key with investing, and it's entirely possible there could be much more significant downside from here.
However, the rather rapid decline we've seen in Enjin Coin could turn out to be a great buying opportunity for those who believe this metaverse trade really has legs. If this turns out to be a short-term dip on a longer-term upward trend, long-term investors could do well buying this dip.
