Injective, a Layer 1 (L1) protocol, emerged as one of the standout protocols in the cryptocurrency market on Thursday, with its native token Eng It saw a huge rise of 7% in the last 24 hours.
With this increase, the protocol's market cap is approaching the milestone of $3 billion. The price action coincides with notable announcements made by the Injective Protocol regarding the token and its ecosystem.
Inject users to burn 6 million INJ
One of the major announcements revealed by the protocol is launch From a comprehensive paper on Injective Token, INJ. The paper delves into the underlying facilities and mechanics of the coin that powers a programmable token economy, with a particular focus on deflationary acceleration.
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In addition, injection a statement INJ token burn auctions are “steadily increasing in size,” with 12,266 tokens being burned indefinitely on the day of the announcement. Injectable users are set to burn a cumulative total of 6 million INJ by next week.
this Combustion mechanism They play a major role in reducing the total supply of tokens in circulation, thus increasing scarcity and potentially increasing the value of remaining tokens. Ultimately, this benefits token holders by creating a deflationary mechanism and controlling inflation within the protocol.
Launch of Injera and USDi
Injection too open The highly anticipated launch of the Injera Protocol is scheduled for the end of June, marking the beginning of a “new era for injections,” according to the protocol.
like AnnounceIn collaboration with DojoSwap, a decentralized exchange (DEX) on Injective, the community will build Injera and USDi, an Injective Artificial Dollar that aims to power the Web3 ecosystem. The goal is to create a decentralized synthetic dollar token fully powered by Injective's financial infrastructure.
At the heart of the Injera and USDi protocol is the Injera Money Market, designed as a market for collateralized debt positions (CDP). This market improves the capital efficiency of the synthetic dollar USDi by enabling reasonable utilization of USDi to borrow “market making assets.”
USDi, the original synthetic dollar, will be subject to Injera symbol (era). It is a stable synthetic US dollar generated through delta-neutral positions, ensuring stable returns of 10% to 90% for USDi holders.
For DojoSwap, this development ensures a continuous increase in TVL and trading volume, generating fee amounts for ecosystem participants.
Bullish sentiment returns
With these announcements, the INJ token succeeded in recovering the price level of $28.68, reigniting its fuse. Bullish momentum After seeing a price correction to the $20 mark in April.
This correction occurred after the token’s remarkable feat of reaching a new all-time high (ATH) of $52 in March.
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In the near term, the $29 level could act as a hurdle for the token, representing an important resistance point that has persisted over the past couple of months.
However, if the bullish momentum continues, the token could break through this resistance and retest $31 and $35 Resistance levels On the daily INJ/USD chart.
Ultimately, ongoing developments within the Injective ecosystem have generated anticipation regarding the future path of the token. Market participants are keen to see if these developments can fuel a sustainable upward trend and possibly surpass previously achieved record levels.
Featured image of DALL-E, chart from TradingView.com
