On Thursday, Injective, a Layer 1 (L1) blockchain protocol, captured significant attention in the crypto market as its native token, INJ, soared by 7% over a 24-hour period.
Boosting this upward momentum, Injective’s market capitalization is edging closer to the $3 billion mark. This price surge aligns with a series of major announcements by the Injective protocol regarding its token and broader ecosystem.
New Token Burn Initiative
Among the pivotal announcements is the publication of an exhaustive paper on the Injective Token, INJ. This document elucidates the token’s fundamental utilities and the mechanisms behind its programmable token economy, with a particular emphasis on deflationary measures.
Notably, Injective reported that its INJ token burn auctions are steadily growing in magnitude, with 12,266 tokens being burned on the day of the announcement. The protocol aims to burn a cumulative total of 6 million INJ tokens by the end of the upcoming week. This burning strategy is integral to diminishing the total token supply, thereby enhancing scarcity and potentially elevating the value of the remaining tokens. This deflationary approach serves to control inflation within the Injective ecosystem, ultimately benefiting the token holders.
Introduction of Injera and USDi
Injective also disclosed the impending launch of the Injera protocol at the end of June, which is set to herald “a new era for Injective.” In collaboration with DojoSwap, a decentralized exchange operating on Injective, the community will develop Injera and USDi—Injective’s proprietary synthetic dollar designed to bolster the Web3 ecosystem. The aim is to craft a decentralized synthetic dollar token fully anchored by Injective’s financial infrastructure.
The heart of the Injera protocol is the Injera money market and USDi, conceived as a collateralized debt position (CDP) market. This setup maximizes capital efficiency for the USDi synthetic dollar by allowing strategic leveraging to borrow “market-making assets.” The USDi synthetic dollar, governed by the Injera token (ERA), promises stable returns ranging from 10% to 90%, making it an attractive option for holders.
For DojoSwap, the introduction of USDi and the Injera protocol spells a continual rise in Total Value Locked (TVL) and trading volume, leading to increased fee generation for ecosystem participants.
Renewed Bullish Momentum
Following these announcements, the INJ token managed to reclaim the $28.68 price level, revitalizing its bullish momentum after an April correction that saw its price drop to $20. This correction came after the token’s earlier surge to a new all-time high (ATH) of $52 in March.
In the short term, the $29 level represents a significant resistance point for the token, a barrier that has persisted for the past two months. However, if the current bullish momentum continues, INJ could break through this resistance and aim for $31 and $35 on the INJ/USD daily chart.
In summary, the ongoing innovations and announcements within the Injective ecosystem have fueled optimism about the token’s future direction. Market participants are eagerly observing whether these developments can sustain an upward trend and potentially surpass previous highs.
