So many blockchain protocols have been created and many more are still being created just as many more will be created in the future. However, not all leave a mark as some just fizzle out. There is a protocol capable of leaving its mark on the crypto industry and it is called Injective Protocol (INJ).
The Injective Protocol is targeting the decentralized exchange sector of the crypto industry and it is aiming to do things differently from other DEXs out there. Having been in development since 2018, the project has seen experienced hands handle its development. So, what does this mean for the Injective network price and how will it add value to the DEX sector? We will examine the protocol to find out.
INJ is a fully decentralized derivatives exchange seeking to be the bridge between a centralized exchange (CEX) and decentralized exchange (DEX), and at the same time introducing the ever-growing DeFi along the way. Although DEXs have been seen as the ideal solution to the regulatory and security issues plaguing CEXs, implementing DEXs has seen its share of problems too. That is something the Injective Protocol is hoping to correct.
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INJ: The Bridge Between CEX and DEX
INJ wants to create a fully decentralized exchange purely run by the users who are token holders on the Injective Protocol. This eliminates the presence of any central body controlling the development of the Injective Protocol. The INJ token became available to the public in 2020 and it received backing from notable names like Hashed, Binance, and Pantera.
The protocol is hosted on the Injective chain, which hosts a fully decentralized order book and uses features from the Ethereum Virtual Machine. There is a link to the Ethereum network via a bi-directional token bridge. The protocol identifies as a layer-2 decentralized exchange, the first of its kind, that brings the full potential of borderless DeFi and decentralized derivative to the fore. The Injective blockchain is operated as a Cosmos SDK module designed using Ethermint, which is the Ethereum Virtual Machine on Tendermint. The protocol carries out cross-chain derivatives transactions using a Tendermint-based PoS across many layer-1 blockchains like Ethereum, Cosmos, etc. Furthermore, the Injective network prevents front running using Verifiable Delay Function (VDFs) and is also collision-resistant.
The Brain Driving the Protocol
The company that founded the Injective Protocol is called Injective Labs and it’s co-founded by Eric Chen alongside Albert Chon. Both of them have deep experience that spans several years. Eric Chen started his professional career in 2014 working as a research fellow at Desay Sv Automotive before becoming an analyst at AXA Advisors. He co-founded the Injective project in 2018 after leaving Innovating Capital as a researcher in 2017.
His partner Albert Chon started his professional career as a full-stack engineer in 2017 working for Linc Global. He moved to Amazon in 2018 as a software development engineer in early 2018 before moving to co-found the Injective Protocol.
Injective Protocol’s Key Features
The Injective Protocol covers many aspects of crypto trading from DeFi, swaps, spot trading, futures, and perpetual swaps. Its native token, which is INJ serves several functions that are highlighted below:
Exchange fee value capture
The protocol itself serves the following key functions:
- It functions as a cross-chain derivatives trading platform with no gas fee.
- It allows users to gain access to cross-chain yield generation for several assets across layer-1 blockchains.
- It creates more openings for trading via markets that you may not find on other exchanges.
How Does Injective Protocol Work?
The Injective network is known as the first project to receive backing from Binance Labs and be listed on Binance Launchpad. Its governance is community-driven where all proposed changes will go through voting in the DAO structure. To incentivize liquidity mining, there are rewards for members of the community who participate in liquidity mining programs inbuilt into the protocol.
The foundation of the Injective Protocol is the Injective blockchain and without it, the four critical parts of the Injective Protocol won’t function as they are supposed to. These four components are explained below:
They are 0x based and provide full decentralization as well as making transactions more efficient. The orders on the order books can enable side-chain relays as settlement is done on-chain. Also, the order books are hosted on nodes that are censorship-resistant.
Trade Execution Coordinator (TEC)
This component of the Injective Protocol blocks the possibility of front-running occurring on the order books. Front-running is the use of bots to observe the order books and having the bots copy the bids of real traders to jump the queue. This can result in increased unfilled orders for real traders causing frustration and their exodus from the protocol.
Bi-Directional Token Bridge
To transfer assets from the Ethereum chain to the Injective chain and back then a token bridge is needed to facilitate the transfer. The token bridge is built within the “peg zones” in the Cosmos network.
EVM Execution Environment
This component on the Injective chain is where smart contracts built on Ethereum can be executed. This allows the developers to build decentralized applications based on the Ethereum chain and use it in a more scalable ecosystem based on the Proof-of-Stake mechanism.
The Unique Injective Protocol That Wants to Change the World
The protocol has the goal of providing solutions plaguing the financial world using the decentralized nature of blockchain. The Injective network will give users the chance to partake in a truly decentralized DeFi ecosystem, in which they are empowered to bring new ideas to the table and make changes to the existing ones.
So, irrespective of your investment scale, whether big or small, the protocol welcomes you in, giving everyone a level playing field to participate in the trading of a diverse range of assets. It brings innovative ideas to decentralized trading and exchanges. All transaction fees are paid with the INJ coin, which allows the protocol to keep on functioning.
INJ Price Historical Data: Technical Analysis
The INJ network price opened with a starting price of $1.05 the day it became available for trading on October 21, 2020, with a trading volume of $45,631,372 and a market cap of $10,124,588. The INJ token then began a steady climb up all through November and December 2020 ending the year with a price of $4.07. The story changed at the beginning of 2021 and the rise became meteoric, ending the month of January with a price of $9.49. This is in part due to the push from the DeFi fever that took over the market in the early part of 2021.
The INJ token rapid rise through the ranks continued through February seeing a price as high as $17. The INJ coin dipped in March and the early part of April and at the height of the bullish market, the INJ coin reached its all-time high of $25.01 on April 30, 2021. The token dipped again before rising to reach $24 on May 12, 2021, then dropping in value afterward. The Token has dropped to its current price of $7.10 as of July 15, 2021.
Injective Protocol (INJ) Price Prediction: Market Sentiment
The INJ token is currently ranked at number 148 on CoinMarketCap and has a verified circulating supply of 29,322,582.89 INJ coins as of July 15, 2021. The market cap is $212,319,424 with a daily trading volume of $35,051,795 and a maximum supply of 100,000,000 INJ tokens. Let’s look at the view of the prediction experts concerning the INJ token.
Going by the prognosis of the prediction experts here, the INJ token is predicted to be a profitable investment delivering earning potential of +187.47% in just one year with the price expected to reach $20.67. – Wallet Investor
According to the site’s deep learning-based algorithm, the INJ coin can be a good addition to an investor’s portfolio as the Injective network price is expected to reach $31.44 after one year and give you an earning potential of 322.84%. – GOV Capital
Using an algorithm based on historical data, the site is predicting the Injective Protocol price prediction to reach $12.16 in a year. That is almost twice the current price. – Digital Coin
Going by our analysis of the Injective Protocol, the INJ crypto is expected to reach a price of $23.3 to give investors a +223.9% return on their investments. – Cointobuy
Injective Protocol (INJ) Price Predictions: 2021-2025
Going through the historical data of the Injective token, we can see that it has steadily maintained the upward climb even with the market ups and downs. The token has had a strong performance and that is mostly the case for tokens that constantly deliver value to users on its network. Also, all the predictions that we have shown indicate that the INJ coin will continue its strong performance in years to come. For example, Digital Coin price is predicting the INJ crypto to close out 2021 with a price of $10.27 while another site, GOV Capital, expected the INJ network price to reach $70.79.
Injective Protocol (INJ) Price Prediction 2021
The year started bullish for the crypto market and this certainly helped push up the price of several cryptos and that is evident with the Injective Protocol as it reached its ATH price in April. The market has since cooled off a bit as the bears have come out to play. However, the token is still expected to end the year strongly and closeout at $19.19 according to GOV Capital. Wallet Investor is also predicting the INJ coin to reach $19 at the end of the year.
Injective Protocol (INJ) Prediction 2022
Several predictions are suggesting that the INJ token will continue its upward trend in the market. Digital Coin price is predicting the coin to reach as high as $13.9 in 2022 and GOV Capital expects the token to reach as high as $40 in 2022. On the other hand, Wallet Investor is predicting the coin to reach $32.
Injective Protocol (INJ) Prediction 2023
The upward movement of the INJ crypto is not expected to reverse course in 2023 as several predictions have it. Wallet Investor is predicting the INJ token to reach as high as $45 at the end of 2023. GOV Capital is expecting the coin to cross the $50 by the end of 2023 and the Digital Coin price with its conservative prediction is putting the token in the region of $17.5 by December 2023.
Injective Protocol (INJ) Prediction 2024
If the token continues its momentum, then you can expect a more positive price for the Injective Protocol price prediction. As Digital Coin price puts the coin will reach the $20 mark by 2024. However, sites like Wallet Investor are more optimistic with their prediction putting the token very close to $60 at $59.67 while GOV Capital is predicting the coin to cross the $80 mark in 2024.
Injective Protocol (INJ) Prediction 2025
So, how will things hold out for the INJ coin in 2025? The prediction data that we have examined think so. Wallet Investor is predicting the token to close the year with a price of $72.51 while GOV Capital holds a more optimistic position and is predicting the coin to close the year with a price of $95.78. Digital Coin price predicts that the INJ coin will only reach as high as $24.82.
Frequently Asked Questions
Where Can You Get an Injective Token?
The token is on several notable exchanges including centralized and decentralized exchanges. You will find it on Binance, Uniswap, Bilaxy, Houbi Global, etc. Binance hosts the highest trading volume for the INJ coin.
Will Injective Protocol Be Listed on Coinbase?
INJ crypto is currently not listed on Coinbase.
Which Wallet Supports the Injective Protocol?
Injective Protocol (INJ) is supported by several wallets such as Trust wallet, Atomic Wallet, Ledger, Trezor, and exchanges inbuilt wallet (though not recommended).
Is Injective Protocol an ERC 20 Token?
The INJ token was initially an ERC 20 token, however, the protocol has launched its native token. You can swap the old ERC 20 token for the new INJ tokens using the Peggy Bridge.
How Does the Injective Peggy Bridge Work?
Peggy bridge allows the Injective network to support the trustless, bi-directional token bridge where users can instantly swap the ERC 20 token for Cosmos-native tokens and also swap it the other way round.
Does Injective Network Burn Tokens?
The protocol burns about 60% of revenues generated from trading fees, which the protocol claims are more than most exchanges do.
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