Injective protocol price prediction: Will INJ regain strength?
The Capitalisation of the global cryptocurrency market has rebounded lately, according to CoinMarketCap. After plunging to a low of $1.53trn on 24 January, the value increased to $1.86trn at the time of writing (21 March), up nearly 21%.
The bitcoin (BTC) price has increased by nearly 23% from its 90-day low of $33,184 on 24 January to $40,983 at the time of writing.
Similarly, INJ, the native token of the decentralised exchange (DEX) Injective Protocol, has experienced a bullish momentum and recovered from a 52-week low of $3.78 on 24 January to $5.35 on 21 March. However, INJ has been still trading more than 78% below its all-time-high of $25.01, achieved on 30 April 2021.
Injective Protocol (INJ) is a direct competitor to other well-known DEXs such as Uniswap (UNI) and dYdX (DYDX). While Uniswap dominates the DEX market, Injective Protocol is ranked 22th in terms of market share and trading volume (as of 21 March), data from CoinMarketCap shows.
Additionally, DeFi LIama reported that the total value locked (TVL) on Injective Protocol spiked from $44.36m on 24 January to $124.33m at the time of writing, a rise of 180%.
Will injective protocol token price recover in the coming days? This article gives a fundamental analysis, along with an injective protocol cryptocurrency price analysis and recent news and developments, to help you form a plausible injective protocol price prediction.
What is Injective Protocol?
Injective Protocol is a decentralised derivatives trading protocol functioning at the layer-2 platform. Injective current markets include but are not limited to spots, perpetual swaps, futures and options.
Injective enables permissionless trading on arbitrary derivative markets, enabling individuals to create and trade any derivative market they want. Since it is a layer-2 protocol, Injective’s decentralised exchange protocol is built on top of layer-1 protocol Tendermint using Cosmos SDK (software development kit).
Injective has a block duration of 1-2 seconds with immediate execution, and each block can handle up to 10,000 transactions using Tendermint. Additionally, the Protocol says that its network has no gas fees, making transactions more cost-efficient for users.
Injective Protocol is funded by several of the industry's renowned investors, including Binance Labs, Marc Cuban and Pantera Capital.
INJ is the Injective Protocol’s native token and is used for protocol governance, exchange fees, derivative collateralisation, liquidity mining and staking.
Injective Protocol news and price drivers
Injective protocol cryptocurrency has undergone a number of important milestones and developments lately, which may drive the INJ future price.
Partnership with Axelar to integrate EVM blockchains
In March 2022, the Injective Protocol collaborated with Axelar, an overlay network that enables the interoperability of web3 applications.
This collaboration attempts to integrate other ethereum virtual machines (EVM) blockchains into the Injective ecosystem. This will include the integration of the Axelar blockchain into the Inter Blockchain Communication (IBC) network and the listing of AXL spot markets once the token is live for trading. IBC is a Cosmos blockchain interoperability protocol for exchanging data across arbitrary state machines.
Additionally, the teams will explore linking Injective Bridge to the Axelar network to facilitate asset transfers from EVM chains such as Avalanche (AVAX) and Polygon (MATIC).
Integration of Injective into KYVE Protocol
KYVE partnered with Injective in March 2022 to provide smooth storage and access to completely decentralised on-chain Injective Protocol data. The KYVE Protocol allows data providers to permanently standardise, verify and retain data streams.
As a result of this collaboration, KYVE will index a diverse set of data for Injective and enable developers working on the Injective Protocol to access reliable, validated and permanently stored data through KYVE’s data storage solution.
Injective Pro v2 launch
In March 2022, Injective announced version 2 of Injective Pro, the protocol’s native DEX. This version involves reworked user interface and back-end optimisations, resulting in a smoother trading experience.
The new version offers:
A redesigned home page that will act as a jumping-off point for users new to Injective Pro, providing valuable hints along the way.
A new portfolio page that will give a summary of users’ balances with simple transfer options.
A newly designed recent-activity page to enable users to quickly locate all previous transactions and payments.
1/ Injective Pro V2 is now live!
— Injective ???? (@InjectiveLabs) March 10, 2022
The upgrade includes a major UI overhaul and backend optimizations that ultimately create the best fully decentralized trading experience. V2 aims to bring a familiar experience for crypto traders everywhere ????https://t.co/USGV12ELdr
Partnership with Copper
Injective Protocol announced a partnership with Copper, a cryptocurrency custody protocol, in January 2022 to enable institutional staking.
As a result of this collaboration, INJ, which was previously held on Copper as an ERC20 token, can now be bridged to the Injective mainnet, enabling new opportunities for staking, delegation and decentralised governance.
Additionally, institutional INJ holders can stake their INJ leveraging the Copper interface with any of Injective’s validators.
Secondly, Copper now supports direct deposit and withdrawal of Injective assets, ensuring that future tokens issued on the Injective chain can immediately provide institutional access.
INJ/USD price analysis
According to ICO Drops, INJ token’s initial coin offering (ICO) concluded in October 2020 at a token price of $0.4. As of 21 March 2022 it is trading at $5.51 and has produced an ROI of 1,277%, according to CoinmarketCap.
The earliest available price chart data from 2020 showed the INJ coin declined from $0.77 on 21 October to $0.68 on 28 October. After that, the price action turned bullish for the INJ token and it closed the year at $4.07, adding nearly 500% in a little more than two months.
Between January and April 2021, the broader cryptocurrency market was bullish, and several altcoins such as ethereum (ETH), polkadot (DOT) registered gains. Similarly, the INJ coin price spiked from $3.59 on 2 January to its all-time-high of $25.01 on 29 April.
However, the broader crypto market outlook turned bearish in May 2021 when Elon Musk tweeted about discontinuing bitcoin payments for Tesla cars. Moreover, during the same period, the Chinese government strengthened its cryptocurrency crackdown. As a result, the INJ coin declined to $7.74 on 23 May and bottomed to $5.20 on 20 July.
Post the bear market, the INJ token gained some momentum and reached $15.50 on 6 September before declining again to $8.03 on 21 September. It bottomed to $7.78 on 20 December and closed the year at $8.24.
At the start of 2022, the INJ token was trading in a bearish trend and bottomed at $3.78 on 24 January. Today ( as of 21 March), the INJ token has been trading at $5.35 and had a market capitalisation of $260m.
Injective protocol price prediction: Targets for 2022-2031
According to The Block, DEXs recorded trading volumes of more than $1trn in 2021, an increase of 858% over the $115bn trading volumes in 2020. With around 70% of market share (combined data for Uniswap V2 and Uniswap V3 as of March 2022), Uniswap maintained its dominance in the DEX sector.
Holding more than half of the market, Uniswap (UNI) leaves a smaller market share to other DEXs, including Injective Protocol, and makes it a very competitive space. Still, the crypto derivatives trend is growing, according to the Block’s Digital Assets Outlook 2022:
According to Crypfographic statistics, INJ jumped 16 positions to become the 202nd largest cryptocurrency by market cap on 13 March. It has since improved further, and INJ now stands at 179 out of 200 major cryptocurrency projects in terms of market capitalisation (as of 21 March).
The short-term INJ price prediction from CoinCodex, based on technical analysis, was neutral today (as of 21 March), with 16 indicators giving bullish signals and nine bearish.
The weekly simple moving averages (SMA) and exponential moving averages (EMA) were giving bearish signals. The volume-weighted moving averages (VWMA), Hull moving average (HMA) and average directional index (ADX) gave ‘buy’ signals.
Meanwhile, the Williams percent range, stochastic fast, relative strength index (RSI) and the moving averages convergence divergence (MACD) stayed neutral.
According to a short-term injective protocol prediction, the price could rise by 22.9% to reach $6.65 by 26 March.
Meanwhile, several algorithm-based forecasting services gave contrasting long-term INJ crypto price predictions as of 21 March:
Wallet Investor’s INJ prediction was bearish and considered the coin a “bad” long-term investment. The average price of INJ could be $4.73 by the end of 2022, $3.88 by the end of 2023, $3.28 by the end of 2024, $3.88 by the end of 2025 and $2.47 by the end of 2026. Its five-year INJ coin price prediction suggests the token could fall to $1.50 by March 2027.
Meanwhile, Digital Coin’s INJ crypto price prediction was moderately bullish. It estimated that the injective protocol cryptocurrency could hit an average of $7.12 in 2022, $7.80 in 2023, $8.07 in 2024, $11.20 in 2025, $9.76 in 2026, $12.43 in 2027, $17.08 in 2028 and $22.16 in 2029. Its INJ forecast expected the coin to hit $25.23 in 2030 and move up to $28.27 in 2031.
In contrast, Price Prediction gave a very bullish long-term injective protocol coin price predictions. Its projection was that the average price of INJ could hit $11.49 in 2022, $17.53 in 2023, $26.22 in 2024, $38.10 in 2025, $58.67 in 2026, $89.47 in 2027, $128.73 in 2028, $196.31 in 2029 and $285.25 in 2030. It expected the coin to exceed $400 and reach $430.89 in 2031.
When looking at INJ target prices, bear in mind that analysts’ and algorithm-based expectations can be wrong. Their injective protocol crypto price predictions are based on fundamental and technical studies of a cryptocurrency’s past performance. Past performance is no guarantee of future results.
Note that it is important to do your own research and always remember your decision to invest in INJ or any other coin depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. You should never invest money that you cannot afford to lose.
FAQs
Is injective protocol a good investment?
Injective Protocol is a decentralised exchange launched in 2020 and competes with other reputed DEXs such as Uniswap. Since then, it has returned an ROI of 1,277% (as of 21 March). Its price movement has been bearish since achieving the all-time high of $25.01 in April 2021.
Whether the injective protocol cryptocurrency is a good fit for your investment portfolio depends on your circumstances and risk tolerance. Always remember that cryptocurrencies are highly volatile assets – prices can and do rise and fall very abruptly. Consider the level of risk you are ready to take before investing, do your own research and never invest any money you cannot afford to lose.
Will injective protocol hit $100?
In their INJ coin price prediction, algorithmic forecasting tools Digital Coin and Price Prediction (as of 21 March) suggested the coin had the potential for gains. Price Prediction estimated that the INJ token could exceed $100 by 2028.
How high can the INJ coin go?
According to the INJ prediction from Price Prediction (as of 21 March 2022), the injective protocol token price could reach $89.47 in 2027. However, Wallet Investor predicted that the INJ coin value could decline to $1.50 by March 2027.
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