Why Enjin Coin, Fantom and Cosmos jumped this week

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What happened

While Bitcoin has seen volatile trading and has only increased by around 1% in the past seven days, many other cryptocurrencies have seen much larger gains throughout the period. It was a particularly good trading week for Ethereum (CRYPTO: ETH), as well as coins built on its blockchain and those with services built around the network.

The Ether token has risen by around 8% over the past seven days, and the rally appears to have lifted many other cryptocurrencies connected to its blockchain. The Enjin Coin (CRYPTO: ENJ), Ghost (CRYPTO: FTM), and Cosmos (CRYPTO: ATOM) tokens increased by approximately 28.1%, 13.9% and 10.6% on the stretch, respectively, according to data from S&P Global Market Intelligence.

Image source: Getty Images.

So what

Ethereum blockchain attracts attention as a building network decentralized applications, and growing adoption recently pushed its Ether token to an all-time high. Growing interest in Ethereum and its token is also creating bullish momentum for other cryptocurrencies.

Enjin Coin is a token that supports a network of non-fungible tokens on the Ethereum blockchain. Meanwhile, Fantom has additional functionality with Ethereum and can be used to offload processing and service requests, and Cosmos is designed to link information and applications across separate blockchains.

Now what

The blockchain and cryptocurrency spaces remain relatively young, and the valuations of associated digital tokens have tended to be very volatile. The increasing adoption of Ethereum is a bullish sign and could help build price momentum for Enjin Coin, Fantom and Cosmos. However, investors should approach these tokens with the knowledge that they will be taking considerable risks in pursuit of potentially explosive gains. For better or worse, prices could fluctuate significantly in the short term.

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Keith noonan has no position in any of the stocks mentioned. The Motley Fool owns stocks and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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