Injective (INJ) has entered a strong bullish phase, with its price surging past $26 on Tuesday—marking seven consecutive days of gains and a total increase of over 25% in just one week. This momentum follows the successful governance vote for the launch of INJ 3.0, a major network upgrade focused on drastically reducing the token supply. As market sentiment turns increasingly optimistic, key on-chain metrics such as Total Value Locked (TVL) and Open Interest (OI) are also showing positive trends, reinforcing confidence among investors.
With these developments aligning, many are re-evaluating Injective price predictions for 2025 and beyond. Could this be the beginning of a sustained bull run?
👉 Discover how major blockchain upgrades influence token value and what it means for your next move.
The INJ 3.0 Upgrade: A Strategic Move Toward Deflation
On Sunday, Injective announced that its community governance proposal to initiate the next phase of INJ 3.0 had passed with an overwhelming 99.99% approval rate. This upgrade is set to transform INJ into one of the most deflationary digital assets by significantly reducing its circulating supply through 2026.
The core mechanism behind INJ 3.0 involves aggressive token burn strategies tied to network usage. Every transaction, derivative trade, and decentralized application interaction on the Injective blockchain now contributes to burning INJ tokens, effectively removing them from circulation permanently.
This shift from inflationary to deflationary economics is a game-changer. In traditional financial models—and increasingly in crypto—scarcity drives value. As demand for fast, scalable, and interoperable Layer 1 blockchains grows, a shrinking supply of INJ could create substantial upward pressure on its price.
“The $INJ3.0 era begins now—with deep supply reduction making INJ one of the most deflationary assets over time.”
— Injective (@injective), January 5, 2025
By aligning incentives across developers, validators, and users, Injective is not just upgrading its tech stack but also reshaping its economic foundation for long-term sustainability.
Technical Analysis: Injective Price Shows Strong Bullish Momentum
From a technical standpoint, Injective’s price action paints a promising picture. On Sunday, INJ broke above its key daily resistance level at $23.46 and closed above the 50-day Exponential Moving Average (EMA) at $24.41. It then climbed nearly 10% on Monday, continuing its ascent to around $26.19 by Tuesday.
If this momentum holds, the next major resistance zone lies at $31.12, representing an 18% increase from current levels. A confirmed breakout above this level could open the door for even higher targets in the coming months.
The daily Relative Strength Index (RSI) currently sits at 58, comfortably above the neutral 50 threshold, indicating sustained buying pressure without yet entering overbought territory. More importantly, the Moving Average Convergence Divergence (MACD) generated a bullish crossover last Friday—an early signal that the short-term trend has shifted decisively upward.
These indicators suggest that Injective is not experiencing a short-lived pump but rather entering a structurally supported uptrend driven by both market psychology and fundamental improvements.
On-Chain Metrics Confirm Growing Network Activity
Beyond price charts, on-chain data reveals growing confidence in the Injective ecosystem.
According to Coinglass, open interest (OI) for INJ futures contracts has surged from $116.42 million on January 1 to **$197.74 million** as of Tuesday—the highest level since December 16. Rising OI indicates new capital entering the market, often signaling strong conviction among traders betting on further price appreciation.
Simultaneously, Total Value Locked (TVL) across Injective-based DeFi protocols has climbed from $50.54 million to **$65.51 million in early July, according to DefiLlama**—a 29.6% increase in less than a month. This growth reflects heightened user engagement, including staking, liquidity provision, and participation in decentralized trading platforms built on Injective.
Such organic growth in TVL strengthens the narrative that Injective is becoming a preferred infrastructure layer for decentralized finance applications—especially those requiring high throughput and low latency.
👉 See how top-performing blockchains are leveraging tokenomics to drive adoption and value.
Frequently Asked Questions (FAQ)
Q: What is the INJ 3.0 upgrade?
A: INJ 3.0 is a major network evolution focused on reducing the circulating supply of INJ tokens through enhanced burning mechanisms tied to network activity, aiming to make INJ a deflationary asset by 2026.
Q: How does reducing token supply affect INJ price?
A: By decreasing supply while demand remains stable or increases, scarcity is created—which historically tends to drive up asset prices, especially in high-growth ecosystems like DeFi and blockchain infrastructure.
Q: Is Injective a good investment in 2025?
A: With strong technical momentum, rising on-chain activity, and a transformative upgrade underway, Injective presents compelling fundamentals for long-term investors who believe in scalable DeFi infrastructure.
Q: What are the key support and resistance levels for INJ?
A: Immediate support sits near $23.46, while the next major resistance is at $31.12. A sustained break above this level could trigger further bullish acceleration.
Q: Where can I track Injective’s TVL and Open Interest?
A: TVL can be monitored via DefiLlama, while Coinglass provides real-time data on open interest and futures market activity for INJ.
Core Keywords Integration
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- Total Value Locked (TVL)
- Open Interest (OI)
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These terms are not only central to understanding Injective’s current trajectory but also align with what active crypto investors are searching for when evaluating emerging Layer 1 projects.
Final Outlook: Can INJ Sustain This Rally?
The confluence of technical strength, robust on-chain fundamentals, and a strategically timed protocol upgrade positions Injective favorably in the current market cycle. The success of the INJ 3.0 governance vote demonstrates strong community alignment—a rare and valuable trait in decentralized networks.
While macroeconomic factors such as broader market sentiment, Bitcoin volatility, and regulatory developments will continue to influence short-term movements, Injective’s focus on building utility-driven deflationary mechanics sets it apart from speculative assets.
For traders and investors alike, now may be an opportune time to assess exposure to Injective—not just as a speculative play, but as a foundational piece of next-generation DeFi infrastructure.
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