By
Temitope Olatunji
April 22nd, 2024
One of the major factors behind the Injective price increase is the surge in trading volumes for INJ perpetual futures contracts which recently surpassed $25.5 billion in 24 hours.
The price of crypto asset Injective (INJ) has seen an impressive explosion in 2023, surging almost 3000% in the process. The rapid price rise has also brought the asset to new all-time highs ATH as it continues to trade in greens. Recall that the asset recently reached a $34.64 ATH on December 15 before retracing its steps.
Injective (INJ) Price History
The price of Injective has embarked on a wild uptrend since the start of 2023. As seen in the image below, INJ was still trading at $1.27 at the start of the year. Its trading volume at the time was also around $4.5 million.
Today, however, INJ was seen trading at $39.28 on CoinMarketCap, signalling an over 2992% price increase year-to-date, and an over 32% increase in the last 24 hours.
For what it’s worth, it appears that the sky-high prices are being driven by a massive increase in futures trading volumes and leverage. However, some signs of short-term weakness are also evident, meaning that there is a potential risk for volatility and highly significant pullbacks.
Nonetheless, overall sentiment continues to show a strong tendency for further price gains.
Price Analysis
According to analysts, several factors that may be intertwined are driving Injective’s impressive rally. However, one of the major of them is the surge in trading volumes for INJ perpetual futures contracts which recently surpassed $25.5 billion in 24 hours.
Moreover, the incentives being offered by centralized exchanges for generating volatility are something that also catches the eye of leverage-seeking short-term traders. That is especially true in light of a recent event with the Weex exchange. The exchange came under the spotlight after an allegation surfaced about it manipulating the market with its perpetual futures offerings.
Essentially, the price surge looks like nothing tied to fundamental spot market activity. Rather, it seems to be primarily driven by leverage from derivatives traders seeking to profit off the price fluctuations.
Though there are reasons to believe that a substantial amount of risk remains, analysts predict that the rally may be sustained. However, that is only as long as the $20 support holds on any pullback.
More Excitement
Meanwhile, the Injective Protocol has also announced the launch of its first inscription marketplace via an X post.
🥳Excited to launch the first inscription marketplace on @Injective_, INJS: https://t.co/JbF6Ug6ujk
INJS will launch the first inscription with the same name, $INJS
🔥The $INJS minting will start from block number 54,875,300, with an estimated time of 3 PM UTC on Dec. 19th
— INJS 🥷 (@inj_inscription) December 19, 2023
The INJS is backed by a group of developers from the Injective community. According to the announcement, the community-focused initiative will be launching an experimental token called the INJRC-20. This token will eventually be used to facilitate the minting, deploying, and transferring of inscriptions on the Injective network.