The trading of perpetual futures in decentralized applications is a good area for growth in the crypto world. It is because there are still a lot of talks going on about regulation, taxes, and KYC on centralized exchanges.
Injective (INJ) is a layer-one protocol that makes it easier to create cross-chain decentralized financial (DeFi) Web3 apps. It is one DEX platform.
If you look at data from TradingView and TBEN Markets Pro, you can see that the price of INJ went up a lot after it hit $3.91 on February 3. After that, it went up 157.8% to a high of $10.08 on February 11.
Three things are behind the surge in demand for INJ: support for new assets in both spot and perpetual markets, the release of Injective Bridge v2, and more money being locked into the protocol because people are staking and adding new assets.
Injective Bridge V2
The release of Injective Bridge v2 in late January helped start the price of INJ going up. It had a lot of new features that made it easier for INJ to work with both Cosmos (ATOM) and Ethereum (ETH).
Injective says that the new bridge can accept any ERC-20 token. It can also accept several Cosmos-based tokens, including ATOM, Osmosis (OSMO), and Terra (LUNA).
It’s a goal of Injective to make the bridge a starting point for new Web3 projects. This is for people wanting to move money from the Ethereum network to other networks without having to pay.
People who use chains that use the Inter-Blockchain Communication Protocol don’t have to pay bridge fees when they move money (IBC).
Injective Protocol Now Includes Support for New Assets
The addition of new assets to the DEX, including the first-ever decentralized perpetual futures contracts for ATOM, was a second development that aided Injective’s momentum.
Injective has launched spot trading for Cosmos-based project Chihuahua (HUAHUA) and a perpetual futures contract for ATOM. There is also an active community vote to include Juno.
After hitting a multi-month low on February 2, the protocol’s trading volume has increased in recent days, thanks to the arrival of new assets.
As a result of this surge in trading volume, the Injective community has been ecstatic. But this is still a tiny fraction of the $3.2 billion in daily trading volume on February 10 and $2.8 billion on February 11, when the dYdX perpetual futures protocol first launched.
TVL Takes Off
The introduction of Injective Bridge v2 coincided with a growth in the total value locked on the platform, which according to DeFi Llama, has reached a new all-time high. On February 11, the total searched value on Injective was $147.35 million, up from $43.96 million on January 23, a gain of more than $100 million.
On INJ, the TVL is made up of assets that can be traded as well as INJ tokens that may be staked on the network and receive a 9.15 percent yearly return on investment.
TBEN Markets Pro’s VORTECSTM data showed a bullish view for INJ on February 6, coinciding with the latest price gain.
The VORTECSTM score is based on market mood, trading volume, recent price fluctuations, and Twitter activity.
On February 6, the VORTECSTM score for INJ surged to 75. Roughly, 39 hours before the price jumped 117 percent over the next three days.
The author’s thoughts and opinions are completely his or her own and do not necessarily reflect those of TBEN.com. Every investment and trading decision involves some level of risk, so do your research before making a decision.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”
