Injective

DeFi

Sherpa

<p class="is-style-lead">Injective, the popular Cosmos-based blockchain for decentralized finance, continued retreating amid concerns about its ecosystem.</p> 
<p>Injective (<a href="https://crypto.news/price/injective/" target="_blank">INJ</a>) token retreated to $16.90 on Sep. 3, its lowest point since Aug. 8. It has dropped by over 67% from its highest point this year, erasing most of the gains it made in 2023. Its valuation has dropped from over $4.8 billion in March to $1.65 billion.</p> 
<h2 class="wp-block-heading" id="ecosystem-challenges-remain">Ecosystem challenges remain</h2> 
<p>Injective’s price action has coincided with the sell-off of most altcoins as the crypto fear and greed index remained at the neutral point of 47.&nbsp;</p> 
<p>This decline has occurred despite a significant increase in the network’s on-chain transactions. According to its <a href="https://injective.com/" target="_blank">website</a>, Injective has handled over 918 million transactions since its launch.</p> 
<p>However, concerns persist about its ecosystem in relation to its valuation. Data from DeFi Llama shows that its DEX protocols handled $43.7 million in the last seven days, making it the 23rd largest chain in the industry, lagging behind platforms like Osmosis, Mantle, and Blast.</p> 
<p>Injective’s DEX volume has been in steady decline after peaking at $611 million in March this year, indicating that its DEX ecosystem is not experiencing growth.</p> 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="3227" height="993" src="https://crypto.news/app/uploads/2024/09/Injective-DEX.jpeg" alt="Injective DEX volume" class="wp-image-14295688">
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  Injective DEX volume | Source: <a href="https://defillama.com/dexs/chains/injective" target="_blank">DeFi Llama</a>
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<p>The total value locked in the Injective ecosystem has retreated to $46.5 million, making it the 51st largest chain. This TVL has also been decreasing after peaking at $72 million earlier this year. Additionally, the volume of stablecoins in its ecosystem has dropped to $22.6 million.</p> 
<p>Injective’s performance in the DeFi industry is notable because its goal is to become the blockchain for the financial services industry.</p> 
<p>Injective token has also retreated as its staking inflows have declined. <a href="https://www.stakingrewards.com/asset/injective-protocol" target="_blank">Data shows</a> that the network has experienced outflows in the past two days, while the staking yield has retreated to 10.4% from last month’s high of 18.7%.</p> 
<p> You might also like: <a rel="" href="https://crypto.news/injective-eyes-expansion-into-web3-gaming-with-major-partnership/"> Injective eyes expansion into Web3 gaming with major partnership </a> </p> 
<h2 class="wp-block-heading" id="trader-cautions-on-injective">Trader cautions on Injective</h2> 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/09/INJ-price.png" alt="Injective price" class="wp-image-14295689">
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  Injective price chart | Source: <a href="https://www.tradingview.com/symbols/INJUSD/?exchange=COINBASE" target="_blank">TradingView</a>
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</figure> 
<p>INJ token has pulled back after reaching a high of $52.96 in March. Recently, it has formed a series of lower highs and lower lows, indicating that bears are in control. In a note, Altcoin Sherpa, a trader with over 222,000 X followers, warned that the token remains at risk of further downside.</p> 
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24INJ&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank">$INJ</a> I think that the chart is still bearish overall and I don't see an end to that quite yet. Lower highs across the board. Should bounce *somewhere* but I don't know where the real bottom is. Personally I doubt it reaches former ATH this cycle but I could be wrong <a rel="" href="https://t.co/R9j7XC8GDc" target="_blank">https://t.co/R9j7XC8GDc</a> <a rel="" href="https://t.co/505agAKWv6" target="_blank">pic.twitter.com/505agAKWv6</a></p>— Altcoin Sherpa (@AltcoinSherpa) <a href="https://twitter.com/AltcoinSherpa/status/1830927648781934887?ref_src=twsrc%5Etfw" target="_blank">September 3, 2024</a>
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  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
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<p>Injective has also remained below the 50-day moving average, while the accumulation/distribution indicator has continued to decline, pointing to increased distribution.</p> 
<p>Its volume has also continued to fall, suggesting more downside. This sell-off will be confirmed if it drops below the descending trendline that connects the lowest swings since April 12.</p> 
<p> You might also like: <a rel="" href="https://crypto.news/near-token-hits-technical-resistance-as-defi-inflows-rise/"> Near token hits technical resistance as DeFi inflows rise </a> </p>

Injective price forms ‘lower highs across the board,’ says analyst

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