Injective (INJ) has earned market interest very recently and has shown a well-grounded price change of 7%. 48 %, Its price increases to $17. 13. This consequently inspired a corresponding increase in the market capitalization which is now at $1. Reached $ 67 billion, it has become one of the leaders in terms of performance, taking the place # 45 in the ranking of market capitalization.

This bullish move is by far complemented by a convincing 28. An unprecedented growth of 95 percent in trading volume within the last 24 hours is currently at $99. The 84 million could be attributed to the increased awareness of the token along with the increase in number of short-term traders and whole value investors.

The volume to market capitalization ratio was examined which equals 5. 96% shows that a reasonable percentage of the market cap has turn over in the last one day. Such ratio assumption indicates that INJ is hovering between short-term traders looking for liquid assets to sell at short notice and investors willing to hold the asset for a long time.

At the time of writing this paper, the circulating supply of INJ is almost the total supply at 97%. Seven million tokens floating around in the market with the supply of 100 million tokens. Another concern that may be dubbed as missing perhaps by some investors is a undefined Max Supply; however, the current supply is merely 2. At $3 million tokens still available for sale, the probability of dilution is the smallest in a long time.

It is a decentralized layer 2 protocol for trading, derivatives, and other financial services decentralized without involving third parties and the project that back INJ token. Injective stands out from other DeFi platforms because of the cross-chain and permissionless smart contracts it offers accompanied by decentralized order books. It is designed to allow anybody to bring to market any financial asset – from simple equities to exotic options and futures – which is the level of flexibility and decentralization cherished in DeFi nowadays.

Several factors could explain the recent increase in INJ’s price and it increased market activity. First, the fact that the Injective team is constantly expanding the DEX ecosystem might be seen as a boost for investors. As the DeFi space evolves, compatible platforms like Injective as well as the ones that provide various types of financial services will be able to gain more popularity. Partnership or integration with other services, or even the coverage of new protocol versions could also be a part of the reason for demand increase for INJ.

Moreover, the 28. In terms of trading volume, it became evident on December 11 that there is an incredible 95% increase in volumes traded within 24 hours, signifying that investors within the ecosystem are more active, probably as a response to news or expectation of something good within the ecosystem or as a result of speculations of something good happening in that ecosystem.

The increase in volume can also be considered as a bullish signal where traders are looking forward to reaping big from Injective’s technological enhancements thus offering unique decentralized finance solutions.

On a macro level, the meteoric rise of Injective also has to do with the increasing role of decentralized finance as a niche further expanding its relevance in the sphere of cryptocurrencies. With intensified policies and monitoring over centralised exchanges, and the fact that the traditional finance structure is being put under much pressure by regulators, financial freedom and flexibility of decentralised exchanges like Injective will likely to remain popular in the long-term.

Nevertheless, as the market continues to demonstrate significant gains in its current position, one has to remember about possible dangers to which the current events in the market bear testimony. By far, the increase in trading volume means that there is a high level of activity in the market, which to some extent can be attributed to high risk since most of the activity may be influenced by speculation which is volatile in the short run. Risk of encountering volatile and sharp corrections at the market usually arises in case of trader overcrowding with regarded objective of obtaining quick profits.

All in all, Injective (INJ) has shown an upward movement having good trading volume and the people’s trust. It tailor-made decentralized financial solutions, the cross-chain compatibility, and decentralized trading makes it perhaps suitable within the larger cryptocurrency space.

Taking the above factors into consideration, Injective may become one of the actively developing DeFi platforms in the future but for the present, investors should be particularly careful to wait for the stabilization of the market and avoid emotional reactions influenced by the hype that often surrounds the newly launched projects.