Injective (INJ), a promising decentralized finance project, is currently outperforming the cryptocurrency market. The INJ token has gained over 10% over the past day, driven by the acceleration of its token burn program and the general market recovery. Let’s dive into the details of this meteoric rise and explore Injective’s future prospects.
Updated on 05/21/2024 at 5:43 p.m. by Léa
The Burn Auction: A signal of increased market activity?
INJ tokens are regularly destroyed during “burn auction”weekly, a mechanism aimed at to limit the number of tokens in circulation while rewarding participants. These auctions are based on the project’s weekly fees, denominated in ETH and WBTC. The greater the activity on the Injective network, the higher the amount of INJ tokens burned.
The next auction, planned May 22should see approximately $322,000 worth of INJ tokens go up in smoke. At the current rate, forecasts call for over 100,000 additional INJ tokens to be burned during the second quarter. Injective’s goal is to make its token deflationary and have one of the highest burn ratios among cryptocurrency projects.
Injective aims to build the blockchain of finance
Arriving relatively late in the decentralized finance space, Injective is no less ambitious. Launched in 2021, the INJ token has only reached its all-time high that during the 2024 bull market. Today, Injective has a full ecosystem of applications, with a predominance of decentralized exchanges like Helix DEX And Hydro Protocol.
The project is currently in a growth phase, attracting nearly $70 million in liquidity, up almost 50% since the beginning of May. Injective is now targeting developers to expand its ecosystem, making comprehensive documentation and resources available for nodes, general development and decentralized finance capabilities.
A mix of projects to boost the ecosystem
Injective aims to integrate all the basic elements of modern decentralized finance: lending, liquidity mining, DEX, oracles and savings protocols. The current selection of projects is already increasing the daily transaction load, with over 2.4 million transactions per day becoming the norm.
The network is also open to upcoming play-to-earn games and a native collection of Punks-inspired NFTs. With its unique architecture designed for user-friendly applications, Injective is positioned as a versatile blockchain, serving finance but also games and NFTs.
It will be necessary to closely monitor the medium-term impact of institutional investors and venture capital funds on the price of the token. The next few months will be decisive in confirming the upward trend and the solidity of the project. One thing is certain: Injective is an actor to follow closely in the cryptocurrency space.
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