Efinity (EFI) Explained

Efinity Marketplace explained

Efinity Analysis

Introduction

From 2020 to now, NFTs and the metaverse have both experienced a boom in popularity. Altcoins such as SAND, MANA, AXS, and ILV have all soared in value during this period of time. Many within the crypto space believe that NFTs and the metaverse are the future of gaming, work, and social interactions and that they will eventually be incorporated into our everyday lives. However, these cryptocurrency projects have at times suffered from poor user experience, technical limitations, and high transaction costs – the latter is especially true in the case of Ethereum-based platforms. Enjin seeks to eradicate these issues to enable the NFT/metaverse industry to reach its full potential. The Enjin team aims to achieve this through Efinity. 

You will find some pretty random things in the metaverse of Decentraland

What is Efinity?

Efinity is currently developing a scalable cross-chain network, enabling the transfer of NFTs from one blockchain to another with speed and relative ease. Current NFT creators are limited by high fees, slow transaction speeds, and a lack of interoperability between various platforms. Efinity aims to solve these issues. 

Solving a lack of interoperability

The Efinity network will create a cross-chain bridge between Ethereum and Polkadot. This bridge will enable the transfer of cryptocurrencies and digital assets from the Polkadot blockchain to the Ethereum blockchain and vice versa. Efinity’s cross-chain bridge implementation will provide more interoperability between Polkadot and Ethereum. 

Efinity parachain

Efinity is currently building on Polkadot, the Efinity network utilizing Polkadot’s Relay Chain validators. With Efinity having a parachain on Polkadot, this allows the network to build a bridge between Polkadot and Ethereum. Additionally, Enjin is currently developing paratokens. Paratokens will be a token standard on Polkadot, allowing for interoperability between Polkadot and Kusama. 

Efinity has a parachain slot on the highly popular L1 Polkadot

Efinity Network Features

Efinity Marketplace

The Efinity marketplace will enable NFTs to be bought and sold across multiple blockchains in one decentralized location. Instead of having to manage their sales across multiple applications and on multiple blockchains, NFT creators can sell their digital collectibles in one place. Furthermore, by enabling multi-chain NFT sales, the marketplace will likely generate a substantial user base. This will allow creators to place their creations in front of a larger audience as users of other platforms may slowly direct their interest towards Efinity. 

The likely result of this marketplace is:

  •  Increased likelihood of price discovery
    • Due to the motivation of maintaining the highest bid (like Ebay). 
  •  Ease of use for creators and buyers 
    • Increased likelihood of high-quality creator attraction
      • Increased marketplace reach
  • More users venturing into other NFT / metaverse applications due to ease of discovery. 
    • Encouraged due to multi-chain nature

Transfers

Users can easily transfer both cryptocurrencies and NFTs with Efinity. 

Efinity Swap

Efinity Swap allows users to convert Paratokens to other tokens. The swaps are automated, utilizing existing bid and ask orders. Although this feature is not groundbreaking, it is being developed by Efinity. 

Crafting

In Minecraft, users can make a chest by combining eight wooden planks in a specific order, as shown below. This is called crafting. Efinity is creating something similar.

Efinity’s crafting feature allows users to modify tokens, increasing the gamification of collectibles. Effectively, users can collect lots of common tokens, combine them in a certain manner and create a rare token. From there, users can get rare tokens, combine them in a certain manner, and create ultra-rare tokens.

Efinity Vision

Upon evaluating the targets set by Efinity and the features they are building, we can deduce that it is an ambitious project. The team envisions a platform accessible for all at low costs, allowing users from across the globe to participate in the metaverse and the universe of NFTs. The Efinity vision revolves around increased adoption and accessibility.

EFI

EFI is the native token of the Efinity network. In essence, EFI ties together all the features of the Efinity network. The primary usage of EFI is for network transaction fees. All fees on Efinity network are paid for with EFI. This includes bridge, swap/pool, and smart contract fees. EFI also has the following features in addition to paying network fees:

  • Governance
  • Marketplace orders
    • Required minimum staking for bidding orders
  • Developer fees
    • If you want to mint an NFT, you must pay a fee in EFI
  • Fuel Tanks
    • Is effectively staking which also decreases fees
  • Jumpnet
    • Through holding EFI, users can increase their JumpNet transaction fees
      • JumpNet is the Enjin blockchain
  • EFI requirement for various pools 

An in-depth analysis of EFI reveals that there is high token utility on Efinity Network. Without EFI, Efinity Network’s goals would not be possible. 

If you want to trade EFI, place your trade on AAX

EFI ICO

The EFI ICO occurred in June 2021, with coins sold at a price of $0.2 USD. During the ICO, Efinity raised a significant figure of $39,000,000 USD. This is despite Efinity having no publicly usable beta product. This high figure to fund world-class development was partially possible due to the positive reputation of Enjin.

Efinity raised $38,900,000 USD in its ICO. 

EFI Historical Price Action

EFI is currently situated at $1.13 USD. This is 64.1% down from the ATH of $3.15 USD and 58.4% up from the ATL of $0.713 USD, with EFI is currently 5.65x up from its ICO price. 

EFI / USDT 

EFI TA 

EFI went on a bullish run between early October to late November. However, medium-term momentum has been lost as the bears are now in control. Technical analysis reveals that EFI is likely going to settle between $0.83 USD and $0.96 USD. Subsequently, this may be the set accumulation zone. 

All in all, EFI is not bullish from a technical analysis standpoint. 

EFI / USDT ~ TA

EFI conclusion

EFI is a cryptocurrency with high utility and it is a budding protocol. All in all, Efinity is a promising project which could provide positive change to the cryptocurrency space. 

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