Why Bitcoin rally is squeezing life out of flow of NFT tokens like CHZ, ENJ, FLOW

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According to on-chain monitoring and rising selling pressure across exchanges, Bitcoin’s current price surge could be short-lived. However, altcoins in the top-50 are trading well above their average values over the last week, owing to increased demand on spot exchanges. In these rallying alts, NFT tokens have performed exceptionally well. As a result, the question is whether Bitcoin is overshadowing the excitement around NFT tokens such as Chiliz, Enjin coin, and FLOW.
Though the market’s altcoins have begun to consolidate, the majority of them still have positive weekly returns. In the case of these top NFT tokens, there is stabilisation and they are in the purchase sector, selling more than 5% below their 24 hour price range. While many NFT tokens have recovered from restructuring in as little as two weeks, declining investor inflows could be the primary metric leading to a price decline during what could be Bitcoin’s most important price rally yet in 2021.

In the case of Chiliz [CHZ], the price has dropped by more than 5% in the last 24 hours, although trading volume has also dropped significantly. In this case, a 60% reduction over the specified time frame indicates a lack of interest and liquidity. Both of these indicators pointed to a bearish trend in the price of CHZ.

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After CHZ traded below the $0.39 level last week, there was speculation that the NFT token would break bullishly. The problem is that less than 60% of CHZ HODLers are profitable at the current price level, which has raised selling pressure. More traders and short-term HODLers want to break even rather than book unrealised profits.

On the opposite, ENJ and FLOW are not the same. In the case of ENJ, there has been a consistent decrease in the number of major transactions on the network.

Transfers, massive sales, and concentration of large HODLers led to $2 billion in NFT token transactions in Q1 2021. According to non-fungible.com results, this was a 20-fold increase over the previous portion. NFT tokens were supposed to continue that in value because the costs of NFT activities are almost non-existent – $0.20 to register an NFT brand, $0.01 or more to build an NFT, $0.01 to pass, and so on.

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However, the NFT hype could be fading as massive purchases for top cryptocurrencies such as Bitcoin and Ethereum increase, in contrast to NFT tokens.

In the case of ENJ, the price has just recently begun to fall, but the concentration of big HODLers has already fallen to the 60% range, with the figure for large transactions on the network falling by more than 8%.

Why Bitcoin's price rally is killing the buzz of NFT tokens CHZ, ENJ, FLOW

ENJ Price Chart || Source: Messari

ENJ’s price was below $2.55 before the end of the first week of April, according to the attached price table. The NFT token later burst through the rangebound market activity to reach an all-time high of $3.95. However, at the time of publication, ENJ was consolidating near its end-of-March 2021 price levels.

Another common token, FLOW, is consolidating after falling more than 11% from its all-time high. The short-term RoI on FLOW is not comparable to ENJ and CHZ; however, the declining trading rate indicates that consolidation is underway, and selling pressure is likely to send the price much lower.

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With a decrease in popularity and buzz, the ROI of NFT tokens can decrease. As a result, now could be the right time to buy NFT tokens while they are already consolidating as Bitcoin rallies.

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