Injective price remained tight this week even as the total value locked (TVL) in its Decentralized Finance (DeFi) ecosystem rose. INJ also wavered after its developers completed the Nivara mainnet upgrade. It was trading at $14.85 on Tuesday, down by about 60% from its highest in November.
Nivara Upgrade and TVL Rise
The main Injective news this week was the Nivara upgrade that happened on Monday. Its developers named it the most performant version of Injective, with a powerful architecture, making it the leading layer-1 network for asset tokenization and real-world asset tokenization.
The Nivara upgrade introduced a new RWA module architecture, institutional compatibility, and a next-generation RWA oracle.
This upgrade came a few days after Injective launched the TradFi index that tracks the biggest companies in the United States, like NVIDIA, Microsoft, and Google. The TradFi index has received over $11 million in assets, a trend that may continue growing in the coming months.
Data shows that the TradFi index has already led to a big increase in volume in Helix, the biggest decentralized exchange in its network. Its weekly volume jumped by 45% to $28 million, bringing its historical volume to over $5 billion.
Injective’s total value locked (TVL) in DeFi has also risen to over $42 million, most of which is in the Helix dApp.
Further, Injective has become one of the top deflationary tokens in the layer-1 industry. It burns most of the fees it generates on its ecosystem. Moreover, the recently launched INJ 3.0 has led to about 5x deflationary effects.
A key challenge for Injective, however, is justifying its high valuation. The INJ token has a market cap of over $1.5 billion and a TVL of less than $50 million. It also has a smaller ecosystem than most other cryptocurrencies.
Injective Price Forecast
The daily chart shows the INJ price has been on a strong bearish trend in the past few months. It recently formed a death cross as the 200-day and 50-day moving averages crossed each other.
The coin is now hovering at a key support level since this price had the lowest swing in August and September last year.
Therefore, the INJ token will likely continue falling, with the next point to watch being at $10, down by about 35% below the current level.
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