Injective (INJ) price has been on a winning streak for the past six days, marking its longest positive run in 2024. On Wednesday, it surged by more than 12%, outperforming other cryptocurrencies in the top 50.
The rally in INJ began on July 5th when it hit a low of $16.93 amidst a broader market downturn. Since then, it has climbed by over 54%, reflecting the improved sentiment across the industry. Bitcoin also retested the key resistance level at $65,000, while the crypto fear and greed index rose from 38 to 58.
One of the contributing factors to Injective’s recent success has been the uptick in developer activity within its ecosystem. Data indicates that the average number of weekly commits has surpassed 700 for the past seven weeks, a significant increase from previous levels. This surge in developer engagement underscores the network’s growth and community involvement, essential factors for blockchain projects.
Moreover, INJ’s token has seen a boost in value alongside a resurgence in derivatives trading volume. The daily volume in the derivatives market reached over $109 million on Tuesday, up from $98 million the day before. Increased activity in this sector typically indicates positive market sentiment.
Helix, Injective’s primary DEX network, has also experienced heightened activity, handling cryptocurrencies worth more than $114 million on Wednesday. This places it as the 32nd largest DEX in the industry, according to data from CMC. Additionally, Injective’s staking market cap has surged to over $1.53 billion, offering investors an annual yield of 20%, among the highest in the market.
Despite these positive developments, some investors remain wary of INJ’s valuation. With a market cap exceeding $2.4 billion and a DeFi TVL of less than $50 million, concerns have been raised about the project’s current standing. Furthermore, Injective only boasts 17 DeFi dApps within its ecosystem, a relatively low number considering its focus on financial services.
Nevertheless, analysts maintain a bullish outlook on Injective’s price trajectory. Some are optimistic about its potential to continue recovering, with a key resistance level at $33, its highest point in June. Another analyst predicts that the INJ token could reach $100 in the future, citing positive technical indicators and market dynamics.
As illustrated by recent price movements and market activity, Injective appears to be gaining momentum and investor interest. With a solid foundation in developer commitment and network growth, the project is poised for further success in the evolving cryptocurrency landscape.