As the Injective Protocol’s INJ token approaches a significant milestone, with nearly 50% of its total supply being staked, it reflects a robust vote of confidence and dedication from its community.
Recent figures reveal a noticeable uptick in the monthly staking figures for the Injective Protocol’s INJ token, hitting over 47 million INJ as of mid-January. This impressive figure represents 47.7% of the entire supply of INJ. The staking’s Annual Percentage Rate (APR) is currently estimated to be approximately 15.96%. A the time of writing INJ price hovers over $38 on Gate.io.
Moreover, the number of delegates participating in the protocol has seen a significant increase since the latter part of the previous year. Injective Protocol’s latest analysis suggests that half of the total INJ supply will likely be staked soon, reducing the number of tokens available for trading in the market.
Anticipating Increased Demand
This substantial staking activity could potentially drive higher demand and foster positive market dynamics. Furthermore, the growing number of stakers and delegates enhances the robustness of the Injective network. It encourages more active node operation and contributes to the security of the blockchain.
This development follows the successful implementation of Injective’s Volan mainnet upgrade, which took place on January 11. The upgrade introduced several key features, such as a real-world asset (RWA) module, improved interoperability, enhanced scalability, sophisticated oracle feed design, and refined token economics, including more efficient burning mechanisms.
The introduction of the RWA module is particularly notable as it enables the creation and management of permissioned assets, offering tailored solutions and compliant access for financial institutions. Additionally, the revamped token burning mechanism is designed to incrementally reduce the supply of INJ tokens, making them more deflationary over time.
Last year’s update to the token burning mechanism was a precursor to this development. It allowed for a portion of the fees or profits generated on the platform to be used in INJ token burn auctions, systematically reducing the token’s supply.
The Volan upgrade also aims to enhance access to decentralized applications (dApps) and encourages Injective community members to actively participate in governance by staking their INJ tokens.
INJ’s price experienced a remarkable increase last December, jumping from approximately $17 to $44.8. Recently, it reached a new high of $45.2 and is currently trading around $38.5. With growing interest in decentralized finance (DeFi), the value of these tokens could continue to climb in 2024.
INJ Makes its Mark on Hong Kong Crypto Index
The Hong Kong Virtual Asset Rating Agency (HKVAC) recently updated its cryptocurrency index. Effective from January 19, Injective (INJ) has been added to the index alongside other notable cryptocurrencies like Internet Computer (ICP), Near (NEAR), Optimism (OP), and Immutable (IMX). This update also saw the delisting of several tokens including TrueUSD (TUSD), Binance USD (BUSD), Hedera (HBAR), Filecoin (FIL), and MakerDAO (MKR).
Furthermore, Solana (SOL) has been included in the HKVAC Global Large Cryptocurrency Top 5 Index and Weighted Index, while Avalanche (AVAX) and Tron (TRX) have been added to the Top 10 Index and Weighted Index.
In the previous update, HKVAC made noteworthy adjustments, including replacing USD Coin (USDC) with XRP in the Top 5 Index and adding HBAR, MKR, and Quant (QNT) in significant market cap indices. This shift also involved the removal of Cryptonex (CNX), ICP, and HEX tokens.
HKVAC, as a prominent virtual asset rating agency in Hong Kong, aims to provide a comprehensive overview of virtual assets in the region, supported by key industry figures. The inclusion of Injective in HKVAC’s index marks a significant step forward, potentially boosting its visibility, credibility, and investor interest.
However, there has been some concern in the local community regarding the index’s criteria, particularly since the U.S. Securities and Exchange Commission (SEC) classifies some of the listed tokens as securities.
What is Injective Protocol?
The Injective Protocol is a decentralized exchange protocol designed to facilitate various asset trades without the need for intermediaries. It uniquely integrates the Polkadot platform, broadening the scope for users to engage in decentralized trading of digital assets, including cryptocurrencies, derivatives, and other financial instruments. This integration provides a secure and transparent trading platform, giving users complete control over their funds and enabling peer-to-peer transactions. This eliminates the need for traditional centralized exchanges, which often have limitations such as high fees, lack of transparency, and security risks.
Injective Protocol stands out for its seamless trading experience, leveraging layer-2 technology for fast transaction settlement and low fees. This allows for quick and cost-effective trades compared to traditional exchanges. The platform offers a wide range of trading options, including cryptocurrencies, commodities, and synthetic assets, enabling traders to diversify their portfolios. Privacy is also a priority, with cryptographic techniques ensuring the confidentiality of user information.
The Injective ecosystem is dynamic, powered by a network of interrelated components contributing to a scalable DeFi environment. This ecosystem is supported by various DApps, including decentralized spot and derivatives exchanges, automated market makers (AMMs), prediction markets, and lending protocols. This versatility highlights the ecosystem’s breadth and diverse offerings.
Governance in Injective Protocol is community-driven, with token holders having the power to propose and vote on changes. This democratic approach ensures inclusivity and reflects the community’s interests. Active contributors to the protocol’s development are rewarded through incentive programs like staking rewards or liquidity mining initiatives, promoting engagement and fostering a collaborative ecosystem.
Injective Protocol also addresses interoperability in the blockchain space, facilitating cross-chain trading and enabling users to trade assets across different blockchains. This functionality not only broadens trading opportunities but also opens up arbitrage potential, creating a more efficient market and increasing liquidity across various networks.
Overall, the Injective Protocol is a comprehensive ecosystem designed for decentralized finance (DeFi), focusing on user privacy, fast and low-cost trading, community governance, and cross-chain interoperability. Its unique features and growing adoption make it an innovative player in the blockchain and DeFi landscapes.
