🌎 Injective Surges 40% Amid 3.0 Upgrade

Injective 3.0 Upgrade Drives Token Price to Six-Day High

Injective, a layer-1 blockchain, has continued its upward trend following a community vote in favor of the new Injective 3.0 upgrade. The token surged by 40% from its lowest point this year, reaching an intraday high of $26, its highest level since Dec. 18.

The rally is primarily driven by the recent community vote to transition from Injective 2.0 to Injective 3.0, which will introduce new deflationary features. The upgrade will adjust the token supply based on staked INJ, enabling real-time adaptation to staking activity. This change is expected to boost the deflation rate by 400%, making Injective more resilient to inflationary pressures.

Impact on Staking Rewards and Token Supply

The shift to a more deflationary model is likely to increase staking rewards for INJ holders. Injective currently offers a staking yield of 10.68% with a staking ratio of 56%, making it one of the highest-yielding cryptocurrencies. By comparison, Ethereum (ETH) offers a 3.13% yield, while Solana and Sui yield 7.06% and 2.81%, respectively.

DeFi Growth and Ecosystem Development

The Injective price also rebounded as the total value locked in its DeFi network rose to over $55.95 million, its highest level since June last year. Most of this growth is being driven by key dApps like Hydro, Helix, Neptune Finance, and DojoSwap. However, Injective has struggled to attract developers to its ecosystem, in contrast to newer layer-1 and layer-2 networks like Sui, Aptos, and Base.

Some tips for investors considering Injective:

Monitor the total value locked in the DeFi network for signs of growth or decline.
Keep an eye on the staking yield and ratio, as these can impact the token’s price and attractiveness to investors.
Follow the development of key dApps and the overall ecosystem growth.

Price Analysis

According to the 4-hour chart, INJ has staged a strong recovery in recent days. This rebound began after the token bottomed out at $18.42 on Dec. 16. It has since moved above the key neckline resistance at $23.80 and crossed the Woodie pivot point at the same level.

The Percentage Price Oscillator has moved above the zero line, indicating positive momentum. As a result, INJ is likely to continue rising, with buyers targeting the first resistance level of the Woodie pivot point at $29.