Outside Source
Injective, the VC-funded layer-1 blockchain, continued its uptrend as community members voted in favor of the new Injective 3.0 upgrade.
Injective (INJ) rose for six consecutive days, reaching an intraday high of $26, its highest level since Dec. 18. The token has surged by 40% from its lowest point this year.
The rally is primarily driven by a recent community vote to transition from Injective 2.0 to Injective 3.0, which will introduce new deflationary features.
The upgrade will adjust the token supply based on staked INJ, enabling real-time adaptation to staking activity. This change is expected to boost the deflation rate by 400%, making Injective more resilient to inflationary pressures.
The shift to a more deflationary model is likely to increase staking rewards for INJ holders. According to StakingRewards, Injective currently offers a staking yield of 10.68% with a staking ratio of 56%, making it one of the highest-yielding cryptocurrencies. By comparison, Ethereum (ETH) offers a 3.13% yield, while Solana (SOL) and Sui (SUI) yield 7.06% and 2.81%, respectively.
Injective price also rebounded as the total value locked in its DeFi network rose to over $55.95 million, its highest level since June last year. Most of this growth is being driven by key dApps like Hydro, Helix, Neptune Finance, and DojoSwap. Its stablecoin market cap is just $30 million.
However, Injective, which counts billionaire investor Mark Cuban among its backers, has struggled to attract developers to its ecosystem. In contrast, newer layer-1 and layer-2 networks like Sui, Aptos, and Base have drawn billions of dollars into their ecosystems.
Injective price analysis
The 4-hour chart shows that INJ has staged a strong recovery in recent days. This rebound began after the token bottomed out at $18.42 on Dec. 16. It has since moved above the key neckline resistance at $23.80 and crossed the Woodie pivot point at the same level.
The Percentage Price Oscillator has moved above the zero line, indicating positive momentum. As a result, INJ is likely to continue rising, with buyers targeting the first resistance level of the Woodie pivot point at $29. This level aligns closely with the 61.8% Fibonacci retracement point at $28.87.
A drop below the pivot point at $23.80, however, would invalidate the bullish outlook and signal the potential for further downside.
This article first appeared at crypto.news
