Home Latest Cryptocurrency News What is the Injective Protocol, and why is it an exciting watch?

What is the Injective Protocol, and why is it an exciting watch?

By Motiur Rahman - min read
10 October 2022

Injective Protocol INJ/USD is a little-known Ethereum-based DEX. The network claims to be an open and interoperable smart contract platform. It is optimised for DeFi applications, an area touted as monumental in the growth of decentralised finance. The DEX uses the Cosmos-backed L2 sidechain for faster speeds, decentralisation, and connection to the Ethereum chain.

Injective provides advanced smart contract features. They include forex synthetics, cross-chain margin trading, derivatives, and futures. The DEX aims to eradicate barriers that limit access to the DeFi sector. It also removes gas fees and ensures high transaction speeds for limitless trading.

INJ token powers the Injective network. It helps in governance and ensures the security of the DEX. The token also enables derivatives collateralisation and is used to reward the market makers.

While the Injective Protocol has been in the market since 2018, it has attracted less attention. That’s partly because it ranks lowly at #159 on CoinMarketCap. Its market cap is only $135.6 million.

INJ eyes a crucial breakout after double-digit weekly gains

Binance

Binance is a prominent global cryptocurrency exchange platform that provides a venue for buying, selling, and trading a vast array of digital currencies. Founded in 2017, it has quickly risen to become one of the largest platforms in terms of trading volume. Binance offers a variety of services including a crypto wallet, margin trading, and futures trading, catering to a diverse user base from casual traders to institutional investors.

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KuCoin

KuCoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 5 million registered users from 200+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique visit ranks the top 5 globally.

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Considering price data, INJ hit $27 last year before the market crash. The token’s low in the year remains at $1.13, but recent recoveries have taken the token to $1.8. Are we set for an explosive move?

Source – Trading

The daily chart outlook is positive for the Injective Protocol token. While the cryptocurrency faces rejection at the $2 level, momentum is strong from the MACD indicator.

The token has attempted a breakout at $2 multiple times. That suggests that buyers are gathering momentum. On the downside, INJ has rejected a decline below $1.74 since August.

Should you buy INJ

While investing in INJ at the moment is premature, a potential breakout would be a win for bulls. Investors should buy on a breakout or further lower on the current correction.