Injective (INJ) price has crashed hard in the past few weeks, erasing all gains made this year. It has crashed from the year-to-date high of $52.98 to $26, shedding millions of dollars in valuation. This retreat has coincided with the overall crypto sell-off as Bitcoin has moved below $65,000.
Injective Network news
The Injective price has crashed hard this week even after some important news in the network. First, the developers announced that the network will go through a big network known as Injective 3.0, which will focus on the network’s tokenomics.
The upgrade will directly reduce the supply of INJ tokens at a faster pace through a princess known as burning. The idea is to make Injective one of the most deflationary assets in the market.
Burning is an important step in the cryptocurrency market because it reduces the number of tokens in circulation, creating more value to the existing ones. It is often compared to share buybacks, which reduce the share count and boost the earnings per share.
The other important Injective news is that staked INJ tokens have jumped to an all-time high. They are slowly approaching the 54.41 million level, which is higher than where they were in 2023.
Data by Staking Rewards shows that the net staking inflows in the past 24 hours stood at over £737k even as cryptocurrencies dropped. Staked INJ tokens are earning an APR of over 14%.
Meanwhile, there are signs that the ecosystem is doing well. For example, Neptune, a new DeFi platform in the ecosystem has picked over $10 million in asses in less than 90 days and this trend may continue.
Still, like all blockchains, Injective is facing challenges as the crypto sell-off intensifies. The total value locked in the ecosystem has dropped to $136.1 million, down from the year-to-date high of $204 million.
Hydro Protocol’s assets have dropped by 21% in the past 7 days while Dojoswap and Helix have lost over 30% and 24%, respectively. Still, Helix is having a good market share in the DEX industry as it processed over $108 million worth of coins in the past 24 hours.
Injective price forecast
The daily chart shows that the INJ token price peaked at $52.98 this month and crashed to a low of $20.13, its lowest point since December this last year. INJ token has dropped below the 50-day and 200-day Exponential Moving Averages (EMA).
It has also moved below the crucial support at $30.51, its lowest level in January this year. The coin has formed a bearish flag pattern, which is a negative sign. Therefore, there is a likelihood that the token will have a bearish breakout as traders target the key support at $20.13, its lowest point this month.
