Scan to Download ios&Android APP


Injective protocol price prediction: Will INJ regain strength?

13:23, 21 March 2022

Share this article

What You Need to Know

The week ahead update on major market events in your inbox every week. Subscribe
Injective Protocol INJ Cryptocurrency. INJ coin growth chart on the exchange, chart
Injective protocol price prediction: Will INJ regain strength? – Photo: Shutterstock

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.

Injective (INJ) 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.

What is your sentiment on INJ/USD?

1.8766
Bullish
or
Bearish
Vote to see Traders sentiment!

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.

“We’re thrilled to welcome Injective into the KYVE Network and look forward to working with the broader community to build the cross-chain future,” said John Letey, co-founder of KYVE. “Injective is revolutionising the way in which traders access markets and manage their digital assets. Our data storage solutions can allow Injective to further decentralise its data and make it more accessible for the masses.”

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.

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 (INJ) all-time performance

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:

“The biggest crypto market by volume comes from perpetual futures contracts, which have no expiry or settlement but trade close to the underlying reference index price using a funding mechanism. While DEXs have become competitive over the years, it is reasonable that the next natural step for growth would be to extend that success to the derivatives market.”

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.

What does Injective Protocol do?

Injective decentralised exchange supports trading on arbitrary derivative markets and allows users to both create and trade on any derivative market. Injective Protocol also enables users to trade cross-chain derivatives on Cosmos (ATOM), Ethereum (ETH), and other layer-1 blockchain networks.

Read more:

What You Need to Know

The week ahead update on major market events in your inbox every week. Subscribe
The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?


Join the 427.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account

2. Make your first deposit

3. You’re all set. Start trading