Injective (INJ) price has been rising for six consecutive days, its longest winning streak in 2024. It rose more than 12% on Wednesday, making it the best performer among the top 50 cryptocurrencies.
INJ’s rally began on July 5 after it dropped to $16.93 as Bitcoin and other altcoins fell sharply. It has surged more than 54% from its lows this month as sentiment in the industry has improved.
Bitcoin retested the crucial resistance at $65,000 while the cryptocurrency Fear and Greed Index moved from the 38 fear zone to 58.
Developer activity at Injective is on the rise
Another potential catalyst for Injective is increased developer activity in the ecosystem. Data shows that the average number of weekly commits has risen to over 700 for the past seven weeks in a row. Prior to that, Injective averaged less than 200 weekly commits, indicating that the network is growing.
The number of commits made by developers is an important metric in blockchain because it is a measure of its activity, the health of the project, and community engagement. It is also a measure of the security of the blockchain.
The value of the Injective token also rose as derivatives volume rebounded. As shown below, daily volume in the derivatives market rose to more than $109 million Tuesday, up from $98 million on Monday. Increased activity in the derivatives market is usually a positive sign.
Analysts are optimistic about the price of the injection.
Meanwhile, Helix, the largest DEX network, is seeing more activity. CMC data shows the network handled over $114 million worth of cryptocurrencies on Wednesday, making it the second-largest DEX in the industry.
Injective, backed by Mark Cuban and Pantera, has also done well, with its market cap jumping to over $1.53 billion. Investors are earning a 20% annual return, one of the highest in the industry.
However, one of the main concerns among INJ investors is its valuation. Injective has a market cap of over $2.4 billion and a DeFi TVL of less than $50 million. It only has 17 DeFi decentralized applications in its ecosystem, which is small for a blockchain targeting the financial services industry.
Some crypto traders are optimistic that Injective’s price can continue to recover, with its initial level to watch at $33, its June high. Another analyst I recently wrote about estimates that INJ token will rise to $100.
