With the boom of DeFi more and more projects appear to make the market and apps creation easier. One of them is Injective Protocol crypto, which offers cross-chain trading and the opportunity to create financial markets.
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Injective Protocol Fundamental Analysis
Injective Protocol is a decentralized exchange (DEX) protocol with advanced features including cross-chain margin trading on Ethereum, Cosmos, and a few other layer-1 blockchain networks, derivatives, synthetics, forex, and futures trading. The native decentralized exchange utilizes certain technological innovations to provide fast speed, improved security, and decentralization.
Moreover, Injective protocol offers zero gas fees thanks to its Cosmos-backed layer-2 sidechain infrastructure, which also provides the optimized connection to the main Ethereum chain. The project’s end goal is to contribute to the creation of a limitless DeFi ecosystem with high transaction speeds, full decentralization, and without gas fees.
Injective protocol has implemented several features that allow it to achieve this goal. The Injective Chain is based on the Cosmos Tendermint Standard — a decentralized sidechain relayer service that works as a layer-2 derivatives platform, trade execution coordinator, and decentralized order book.
Injective Chain has a peg-zone architecture, based on the Cosmos Gravity Bridge that allows transferring the value between Ethereum and Cosmos Hub. The EVM execution framework is based on Tendermint’s Ethermint EVM implementation. The combination of those features allows cross-chain compatibility and liquidity.
Thanks to the Injective Futures protocol users can enjoy fully decentralized peer-to-peer trading via perpetual swaps and contract for different derivative products. Additionally, anyone can use the protocol to create their own derivatives markets.
Injective is completely governed by the community. The project team encourages the early adopters to know about the product and connect with the other community members and participate in the future of the project. The Injective ecosystem includes over 100 projects and 200K+ community members from around the globe.
INJ is a native utility and governance token of the project. It is used for governance, derivatives collateralization and is needed for integrating protocol security, market maker, and relayer incentives. It is also a currency for the fees within the chain.
Injective Protocol Live Price Chart
During the last year, the INJ token has been bearish and continued to lose value even when the whole crypto market was bullish. After the short period of the value increase at the end of April - end of May, when the asset was traded in between $15 - $22, INJ token fell to $7.7 on May 23.
The price recovered and went up to $9, then was corrected and sustained at the level of $7-$7.7 till the end of June. It was the bearish period for all the cryptos and the INJ token has stayed in between $5.5 and $7.5 till the end of July. At the beginning of August, the coin price started to slowly grow up, but couldn’t reach the previous level. On August 21 INJ was traded for $12.9. It was followed by the price correction that pulled the asset off to $10.9.
Then the asset started to grow and reached $15.5 on September 6. As most of the assets went up in October hitting new heights, the INJ token also started to gain the price after falling to $8 on September 21. By October 19 the coin reached $13.6, then was corrected to $10.3 and sustained around $13.5 till the beginning of December.
In mid-December, INJ was traded for $8, experienced a short rise to $9.8 in the last 10 days of 2021, and then continued to fall from the first day of 2022. By the end of January, the asset was down at $4.3, which has been sustained until now. The Injective Protocol price chart continues to show bearish signals. Despite this, analysts expect the price to go up to $10 by the end of the year and to gain not less than 70% of the price in a 5-year period.