Injective Protocol (INJ) rallies 100%+ after launching cross-chain support for Cosmos

Decentralized trading of perpetual futures contracts is a promising crypto sub-sector. This is especially true as there are ongoing discussions about regulation, taxation, and mandatory KYC on centralized exchanges.

Injective (INJ), a layer-one interoperable protocol that facilitates the creation of cross-chain Web3 Decentralized Finance (DeFi) applications, is one DEX platform that has gained traction.

Cointelegraph Markets Pro and TradingView data show that the INJ price has rallied 157.8% since hitting a low point of $3.91 on February 3. It reached a high of $10.08 on February 11. This was despite a 1,756% increase in its 24-hour trading volume of $306 million.

INJ/USDT 1-day chart. Source: TradingView

The three main reasons for the rise in INJ demand are the introduction of support in spot and perpetual market for new assets, Injective Bridge 2.0 and an increasing total value of the protocol due to staking and addition of assets.

Injective Bridge v2

The latest development to kickstart the price growth of INJ was the publication of Injective Bridge v2 at January’s end. This included a number of upgrades that were designed to facilitate cross-chain compatibility between Cosmos (ATOM), and Ethereum (ETH).

The Injective Bridge V2 is now available! The Injective Bridge V2 offers a superior user experience to all @ethereum users. The bridge will serve as a core launchpad for new cross-chain Web3 projects looking to deploy on Injective https://t.co/tzN9czynjS
— Injective (@InjectiveLabs) January 28, 2022

According to Injective the bridge can support any ERC-20 token as well as multiple Cosmos-based tokens such ATOM, Osmosis, OSMO, and Terra (LUNA).

Injective hopes to make the bridge a hub for Web3 projects, which will allow users to transfer assets from Ethereum for no fees.

Transferring funds to the Inter-blockchain communication protocol, (IBC),-enabled chains is free of charge.

Injective Protocol provides support for new assets

Injective’s momentum has also been boosted by the addition of assets to the DEX. This includes the first ever decentralized perpetual futures for ATOM.

Injective has added spot trading to the Cosmos-based project Chihuahua (HUAHUA), and a perpetual futures contract with ATOM. There is also an active community vote for Juno.

After hitting its lowest level for several months on February 2, the protocol’s trading volume has seen an increase over the last few days due to the addition of new assets.

Daily trading volume in Inject DEX Source: Injective

It has been a great surprise for the Injective community to witness an increase in trading volume on this protocol. However, the current volume is only a fraction of what was seen on top perpetual futures protocol, dYdX. On February 10, the daily volume was $3.2 billion and $2.8 billion respectively.

Related: Is derivatives trading becoming a threat to crypto retail investors?

TVL rises

Injective Bridge 2 was followed by an increase in total value on the platform. Data from DeFi Llama indicates that the metric has reached a new record.

Injective has a total value of $2.5 billion Source: Defi Llama

The total value of Injective as of February 11 is $147.35 Million, an increase of over $100 million from the low of $43.96M on Jan. 23.

The TVL for INJ is made up of assets that can be deposited for trading and INJ tokens that can be staked on the network earning an average of 9.15%.

Data from Cointelegraph Markets Pro showed that VORTECS(tm), which is data about the bullish outlook for INJ, was also detected on February 6, prior to the recent price increase.

Cointelegraph’s exclusive VORTECS(tm), Score is an algorithmic comparison between historical and current market conditions. It is based on a combination data points, including trading volume, market sentiment and recent price movements, and tweet activity.

VORTECS(tm), Score (green) vs. INJ Price. Source: Cointelegraph Markets Pro

The chart shows that the VORTECS(tm), Score for INJ spiked to the green zone. It reached a peak of 75 on February 6, just 39 hours before the price increased 117% over three days.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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