TL;DR
Think of Injective Protocol as a Layer 1 chain optimized for DeFi applications. What makes it stand out are cross-chain trading and gas-free transactions. In recent weeks, some important upgrades have been announced. Activity and price have picked up considerably. Let’s have a look.

An outperformer in the fresh bull market (a 20x since the 2023 lows!), Injective (token: INJ) is one of only two projects that were around in the previous cycle that have surpassed all-time highs (the other one is OKX’s utility token OKB). Let’s find out what is behind the pump.

Injective has something going for it in the competitive niche of Layer 1’s (L1s). Namely it’s a sector-specific blockchain: it is an L1 built specifically for finance. It’s interoperable with major L1s, including Ethereum, Solana, and Cosmos.

Key Features

Injective launched in 2021. Quickly known for its tight spreads and low fees, it offered a wide array of financial functionalities and tools, catering especially to DeFi applications. In the days following launch, the total trading volume on Injective surpassed $100M. Shortly after launch, Injective introduced one of the largest token-burning ratios of any project. 

Key features of Injective include:

• Decentralized Trading: It makes cross-chain margin trading possible, and also derivatives, and forex futures trading. 
• Interoperability and Cross-Chain Technology: Injective allows seamless asset trading across different blockchains, enhancing liquidity and market efficiency. Through integration with Wormhole, it is compatible with major blockchains like Ethereum, Solana, Polygon, and others.

Built using the Cosmos SDK (Software Development Kit), Injective benefits from fast transaction processing and the interoperability offered by Cosmos’ Inter-Blockchain Communication (IBC) protocol.

• The token: the INJ token is a utility token with governance features, allowing users to participate in the protocol’s decentralized autonomous organization (DAO). 
• The Injective ecosystem is extensive and robust, featuring exchange layers, DApps, tools, and partnerships with significant players in the crypto space.   
• Staking Rewards: The protocol offers an attractive staking reward of roughly 15% APR.

Network Activity

INJ was originally not really a retail coin, it wasn’t a favorite of your average Joe. 95% is held by whales – even though there are more coins with a similar ratio. The good news? The number of INJ owners shows a nice S-curve, and we’re currently in the exponential part of the S (graph below).

In line with this exponential trend of token holders in recent weeks, we see a breakout in the number of active users (graph below).

The number of new wallets has risen in a similar way (below).

Injective Ecosystem

The most widely used applications (dApps) built on Injective are decentralized exchanges. Helix is the prime example: it’s one of the most popular and fastest-growing decentralized derivatives exchanges. 

Other notable dApps in the Injective ecosystem include Black Panther and Talis. Through the Kepler Dashboard you can stake Injective through these apps, among others. An airdrop is upcoming for Black Panther and Talis.

Helix: Decentralized Exchange

Helix is a decentralized exchange application that operates on the Injective platform. As a pioneering decentralized exchange, it specializes in crypto spot and derivatives trading. One of the key features of Helix is its decentralized order book.

NFT Platform Dagora

Recently, as mentioned, multichain NFT marketplace Dagora integrated into Injective’s platform. It no doubt didn’t hurt the price. Dagora supports multiple chains: BNB Smart Chain, Polygon, Ethereum, Viction and SEI.

Recent Developments

Catalysts of the INJ price have been two announcements: its integration with Google’s CloudHub and the announcement of the Volan upgrade.

Integration with Google’s CloudHub

On October 24, 2023, Injective announced its integration with Google Cloud’s data exchange platform, CloudHub. It got the INJ community pumped for the Web3 platform’s future possibilities.

The integration with CloudHub enables developers and enterprises to interact with data across the Injective network, utilizing customizable Injective datasets for various applications, including building DeFi applications and institutional trading strategies. This is a major step forward for the Injective ecosystem, particularly in terms of expanding its reach into traditional finance and institutions.

With the integration, developers can more easily build applications using Injective’s data. This could lead to more innovative financial applications being developed on Injective. The other field in which this could lead to meaningful advances is analytics. The integration allows for the use of Google Cloud’s powerful analytics tools with Injective’s data. This could lead to better decision-making for businesses that rely on blockchain data.

Upcoming: the Volan Upgrade

This Volan upgrade is mostly a big tease. Injective: 

‘The largest mainnet upgrade in Injective history will be released in a few weeks’. 

Specific details about the features and improvements of the Volan upgrade are not disclosed, which is perhaps all the reason the more why the community is buzzing with excitement.

The Volan upgrade is speculated to strengthen Injective’s position in the DeFi space, providing enhanced functionalities and possibly new features to its users. What will this mean in practice? Users might get access to more coins/assets and financial instruments.

Conclusion

INJ has pumped so much in anticipation of the Volan upgrade and upcoming airdrops that it remains to be seen if this pump will continue or fade out. As you know, these developments are often sell-the-news events. Remember when Cardano finally launched smart contract functionality, which marked the top? Regardless, it’s clear that Injective isn’t done after one market cycle: it’s here to stay.