Injective (INJ) price has risen for six consecutive days, its longest winning streak of 2024. It rose by over 12% on Wednesday, making it the best-performing top 50 cryptocurrency.
INJ rally started on July 5th after it tumbled to $16.93 as Bitcoin and other altcoins dropped sharply. It has risen by over 54% from its lowest point this month as the sentiment in the industry improved.
Bitcoin has retested the crucial resistance at $65,000 while the crypto fear and greed index has moved from the fear zone of 38 to 58.
Injective’s developer activity is rising
Another potential catalyst for Injective has been the increase in developer activity in the ecosystem. Data shows that the average number of weekly commits has risen to over 700 in the last seven weeks straight. Before that, Injective was averaging less than 200 weekly commits, meaning that the network is growing.
The number of developer commits is an important metric in a blockchain because it is a measure of its activity, project health, and community engagement. It is also a measure of a blockchain’s security.
Injective’s token has also rallied as the derivatives volume bounced back. As shown below, the daily volume in the derivatives market rose to over $109 million on Tuesday, up from $98 million on Monday. More activity in the derivatives market is usually a positive sign.
Analysts are bullish on Injective price
Meanwhile, Helix, its biggest DEX network is seeing more activity. Data by CMC shows that the network handled cryptocurrencies worth over $114 million on Wednesday, making it the 32nd biggest DEX in the industry.
Injective, which is backed by Mark Cuban and Pantera, has also done well as its staking market cap jumped to over $1.53 billion. Investors are generating an annual yield of 20%, one of the highest in the industry.
However, a key concern 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 dApps in its ecosystem, a small number for a blockchain that targets the financial services industry.
Some crypto traders are optimistic that the Injective price can continue its recovery, with its initial level to watch being at $33, its highest swing in June. Another analyst who I wrote about recently estimates that the INJ token will rise to $100.
— DevKhabib (@DevKhabib) July 17, 2024$INJ brokeout and is showing its power.
With 60% of tokens staked, it is only a matter of time before we see an aggressive move up.
A similar pattern from the previous leg up is forming, and I can see the same thing happening. pic.twitter.com/g7gnofb4wB