On June 17, 2024, the number of transactions on the Injective chain exceeded 700 million, becoming one of the most watched projects in the blockchain field. According to the latest data, the current price of Injective (INJ) is $24.25, fluctuating between $24.06 and $25.31 in 24 hours, with a market value of $2.345 billion. Recently, the INJ token has performed well, topping the soso value daily increase list on June 13 and June 11 respectively.
Injective has been showing strong growth since 2023. Although the overall crypto market is in a bear market, Injective has achieved significant price improvement, rising from $1.25 at the beginning of the year to $19.20 in November, an increase of 1,436%. This performance not only improved its market ranking, but also attracted the attention of a large number of investors. INJ’s price continues to rise through 2024, indicating the market’s recognition of its long-term value.
In 2024, Injective has made significant progress in both technology and marketing. Built on Cosmos-SDK and using the Ignite consensus mechanism, Injective provides plug-and-play financial application modules, promoting the diversification and expansion of its ecosystem. Injective continues to strengthen its position in the DeFi and derivatives market through its integration with Kava, partnership with Google Cloud, and the establishment of a $150 million ecosystem fund.
Whether it is a strong investment background or technological innovation, Injective has demonstrated its adaptability in the market and its future growth potential. With the breakthrough in the number of on-chain transactions and the continued rise in market popularity, Injective is moving towards a higher goal.
Next, we will take a deeper look at Injective’s positioning in the market and its potential for future development.
On April 23, 2024, the Injective community voted on-chain to approve the INJ 3.0 token economics system. The passage of this governance proposal marks the biggest upgrade to the Injective token economics system, increasing its deflation rate by 400%, making it one of the most deflationary assets in cryptocurrency. This upgrade has greatly enhanced market confidence in INJ and may be an important factor in driving price increases.
The core content of the INJ 3.0 token economics system includes two parts. The first is the adjustment of the upper and lower limits of inflation. The proposal will gradually reduce the lower limit of inflation to 4% and the upper limit to 7% over the next two years. This adjustment is intended to reduce the supply of tokens on the market, thereby increasing the scarcity and value of tokens. In addition, the inflation rate change parameter is increased from 0.1 to 0.5 to enhance its responsiveness to equity activities. Eric Chen, CEO of Injective Labs, said that the proposal received 99.99% support, reflecting the community's strong support and expectations for this upgrade.
Token destruction is an important part of the Injective economic system. In May, Injective announced the destruction of 60,000 INJ tokens, bringing the cumulative number of INJ destroyed to more than 6 million. The token destruction mechanism further increases the scarcity of tokens by reducing the total number of tokens on the market, thereby increasing their market value. This mechanism not only helps maintain the price stability of INJ, but also enhances investor confidence.
INJ's token destruction auction is a unique mechanism that is conducted through weekly auctions. During the auction, various dApp revenues and user contributions within the Injective ecosystem are collected into a special auction fund, and anyone can bid with INJ to win this asset basket. INJ that successfully bids will be permanently destroyed, thereby reducing the total supply and enhancing the value of the token. This dynamic system not only incentivizes community participation, but also ensures the continued vitality of the ecosystem.
As you can see from the chart, INJ price has experienced significant increases over the past year, which is closely related to token economics updates and the ongoing token burning mechanism. INJ rose from $1.25 at the start of 2023 to as high as over $50, and despite a recent pullback, remains above $24. Ongoing token burning and deflationary policies have contributed significantly to this price increase.
As more assets are introduced into the Auction Fund and tokens are burned continuously, the value of INJ is expected to continue to rise and attract more investors. Through these innovative initiatives, Injective has demonstrated its adaptability and growth potential in the market and has become an important player in the DeFi field.
Next, we will further explore Injective’s strategic layout in the market and its future development possibilities.
People familiar with the blockchain field know that Injective has always received widespread attention and support for its technological innovation and market adaptability. In particular, the capital injection from multiple well-known investment institutions has provided a solid foundation for the development of its ecosystem. Specifically, Injective has performed well in terms of financial support, demonstrating its strong development potential:
First, in terms of investment support, Injective has received investments from many well-known institutions such as Pantera Capital, Kucoin Ventures, Jump Crypto and Delphi Labs. These institutions not only provide Injective with abundant financial support, but also provide comprehensive support in technology development, marketing and community building. For example, in January 2023, Injective announced the launch of a $150 million ecosystem fund with these institutions to support cross-blockchain financial applications developed based on the Cosmos system and accelerate the adoption of DeFi projects.
In addition, Injective has further consolidated its financial strength through multiple successful financing activities. In August 2022, Injective raised $40 million in a financing round led by Jump Crypto. This financing not only attracted the participation of well-known investors such as Brevan Howard Digital, but also introduced more valuable stakeholders to Injective. Eric Chen, CEO of Injective Labs, said that the financing will be mainly used to support new developers, develop key toolkits, and promote core upgrades to expand its ecosystem and increase the utility and liquidity of INJ tokens.
Injective has further enhanced its market influence and brand awareness through cooperation with well-known investment institutions. For example, the cooperation with Pantera Capital not only brought financial support, but also attracted a large number of developers' attention and participation by jointly hosting global virtual hackathons. These initiatives not only enhance Injective's technical strength, but also promote the diversification and expansion of its ecosystem.
In order to further promote the development of the ecosystem, Injective also plans to launch a series of innovative products and services, such as the inEVM Layer 2 solution and a customizable rollup project in cooperation with Caldera. These projects are designed to enhance interoperability with other blockchains such as Ethereum and provide developers with a more efficient and secure development environment.
In general, Injective has achieved remarkable results in technological innovation and market promotion through multi-party support and capital injection, and also demonstrated its potential and forward-looking layout as a leader in the blockchain field. In the future, with the introduction of more funds and resources, Injective is expected to continue to play an important role in the DeFi field.
The Layer 1 blockchain industry faces many challenges. Bitcoin has high transaction fees and poor scalability; although Ethereum has introduced smart contracts, the high gas fee hinders the participation of ordinary users; although Solana has high TPS, frequent downtime issues limit its widespread use. Injective stands out from these problems and provides a comprehensive solution.
Lightning-fast transaction speed: Injective optimizes Cosmos technology to make it an efficient Layer 1 blockchain with a TPS of up to 25,000. In comparison, Ethereum and Bitcoin have TPS of only 12-15 and 6-8 respectively, and Solana claims to be able to reach 65,000 TPS, but can only process about 3,000 TPS in reality. Injective achieves instant finality of transactions at the millisecond level, greatly improving transaction efficiency.
Low Transaction Fees: Injective’s average transaction fee is less than one cent, significantly lower than the fees on Ethereum and Bitcoin. This gives Injective a significant advantage in cost-effectiveness and truly achieves inclusive finance.
Cross-chain interoperability: Injective is built on the Cosmos SDK and focuses on cross-chain interoperability. Through Ionic upgrades and Wormhole integration, Injective supports bridging from more than 20 chains, including Ethereum, Polygon, and other Cosmos-based chains, greatly enhancing its interoperability capabilities.
Instant finality: On Injective, transactions can be confirmed instantly, greatly reducing withdrawal and deposit delays on centralized exchanges. In comparison, Bitcoin confirmation times take hours and Ethereum typically takes 10 minutes.
Injective's ecosystem includes many top projects, such as Helix, DojoSwap, Mito, and Hydro Protocol. These projects cover multiple fields such as decentralized exchanges, automated trading, lending, and liquidity staking, demonstrating the wide application of Injective in the fields of DeFi and Web3. For example, Hydro Protocol, one of the largest protocols on Injective, claims that its TVL (total locked value) exceeds US$125 million. Helix and DojoSwap are also important decentralized exchange projects, with TVLs of approximately US$18.41 million and US$32.95 million, respectively.
Injective has successfully stood out in the L1 blockchain industry through its unique technology and economic model. Its dynamic supply mechanism and innovative token destruction system ensure the scarcity of tokens and the steady growth of their value. At the same time, Injective's low transaction fees and high transaction speed provide ordinary users with an efficient and low-cost blockchain platform.
In general, Injective not only solves the main problems of the current L1 blockchain, but also provides a powerful infrastructure for decentralized finance and Web3 applications. With the continuous expansion of the ecosystem and the addition of more projects, Injective is expected to continue to lead the development direction of blockchain technology in the future and become an important force in the L1 industry.
Injective stands out in the Layer 1 blockchain industry with its innovative technology and unique economic model. Through a dynamic supply mechanism and token destruction system, Injective not only achieves token scarcity and stable value growth, but also provides an efficient and low-cost blockchain platform to meet the needs of inclusive finance. Its cross-chain interoperability and instant finality make it far ahead of other competitors in terms of transaction speed and fees.
With the support of the ecosystem, Injective has attracted many top projects and developers, providing a strong infrastructure for decentralized finance and Web3 applications. With the continuous expansion of the ecosystem and the addition of more innovative projects, Injective is expected to continue to lead the development of blockchain technology in the future and become an important force in the Layer 1 industry.
Through these efforts, Injective not only solves the main challenges of the current blockchain industry, but also paves the way for future decentralized applications. Injective's continuous innovation and ability to adapt to market conditions have enabled it to demonstrate strong competitiveness and unlimited growth potential in the blockchain field. Over time, Injective will continue to promote the development of blockchain technology and become an important role in shaping the future financial system.