Injective (INJ), a layer 1 blockchain project designed for DeFi applications, has recently seen some notable price action. The token surged more than 12% while most altcoins remain in deep red.
What are the factors driving this recovery? Can INJ maintain its upward momentum this month?
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12% spike due to IIP-619 approval and DAT accumulation
News surrounding IIP-619 accelerated today’s price rally.
IIP-619 represents a major governance proposal in the Injective network. It is intended to be a major upgrade to Injective’s real-time EVM architecture. This proposal strengthens support for next-generation payments and expands the MultiVM ecosystem.
This proposal aims to:
Enhance the performance of your MultiVM architecture by significantly increasing speed and processing power across multiple virtual machines, including Injective’s native EVM. Deepen integration with Chainlink oracles to optimize real-time price feeds for real-world assets (RWA). This improvement ensures faster and more accurate pricing data, which continues to be important for derivatives trading and RWA markets.
A total of 99.99% of stake participants voted in favor of IIP-619. Following Injective’s official announcement, INJ soared over 12%, rising from $3 to $3.40. At one point, the price peaked at $3.95.
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After months of sustained decline, positive developments have refocused investors’ attention on INJ.
Another factor driving renewed interest is Pineapple Financial’s accumulation activity. The company recently launched a new dashboard, revealing that it has accumulated over 7 million INJ tokens, representing 7% of Injective’s total supply.
This chart shows that Pineapple Financial increased its holdings throughout February.
Furthermore, according to Artemis data, Injective’s daily trading fees are still around 14,000 INJ. The network has maintained a steady upward trend in fee generation over the past few years.
This growth indicates genuine on-chain activity. Users will continue to stake, trade, and build applications on the network.
“When you compare this to 2022 levels, the difference is night and day. Fees continuing to rise over time shows that the activity is real. Users are staking, building and trading. They are not just holding onto tokens and waiting. That is what really matters in the long run,” staking service provider Everstake commented.
However, these positive signals may not be strong enough to overcome the widespread negative sentiment surrounding altcoins. INJ is still trading more than 90% below its all-time high. The path to recovery is likely to require significant new capital inflows from new investors.
