Injective Protocol has seen phenomenal growth during the current year. In 2020, the cryptocurrency was operating at a price of less than $1 but it peaked at $22 during the high of the bull run in May. Despite losing a lot of value during the subsequent market correction, the INJ token has maintained its price well above $1. At the time of writing, the cryptocurrency stands at a price level of $10.89. The price has gained by around 20% during the past twenty-four hours while the daily trading volume has surged upwards by more than 400%. Injective Protocol stands at a market rank of #143 with the capitalization growing with the price spike.
What is Injective Protocol?
Injective Protocol is a layer-2 protocol designed to enable cross-chain trading in the cryptocurrency market. Since the lack of interoperability is one of the major problems plaguing the blockchain industry, INJ protocol is one of the solutions for the decentralized finance segment’s problems. It, essentially, is a decentralized exchange that offers more advanced trading features like cross-chain margin trading, etc. Moreover, the DEX is working towards eliminating the barriers that exist to crypto trading with zero gas fees, access to multiple markets, 20X leverage, and 24/7 trading.
Developments to push price upwards
Injective Protocol recently launched the first Injective Bridge to Terra. The bridge is now live and has integrated the Terra Station Wallet along with LUNA and UST transfers to the protocol. The integration of Terra is one of the steps of the protocol towards enabling high liquidity in DeFi through interoperability.
Another major development that is occurring on the network right now is its token burn. The Injective Burn Auction is now live. The protocol is regarded to have one of the largest token burning ratios after the burn auction. This has led to the INJ token being highly deflationary which poses good things for its future value. The first burn is set to automatically take place on 15th December. Through the auction, Injective Protocol will burn 60% of all exchange fees every week. The burn and buyback procedure is managed by a community-led auction.
Future outlook
Injective Protocol has had phenomenal growth during 2021 which gives a strong bullish outlook. Moreover, the recently announced burn auction will create deflationary pressures in the INJ ecosystem and push the price of the token upwards. According to the estimates of Wallet Investor, the cryptocurrency is expected to be operating at a price level of $14.9 in a year’s time while the five-year projection places it at $37.1.
