INJ is the native cryptocurrency of the decentralized exchange (DEX) Injective Protocol. The trading platform built on the Cosmos (ATOM) blockchain offers cross-chain margin trading, derivatives, and forex futures trading.
Today we will be taking a deeper look into the Injective Protocol to understand how it functions and what purpose the INJ token serves within the ecosystem.
We will also analyze the future price prospects for the cryptocurrency before determining whether it is a credible cryptocurrency project.
So without further ado, let’s get started.
What is Injective Protocol (INJ)?
Injective Protocol (INJ) is a decentralized trading platform built on the Ethereum and Cosmos blockchains as a layer-2 application.
The exchange uses cross-chain bridges, allowing traders to access crypto tokens deployed on other networks such as Ethereum and Polkadot.
The platform can be used to trade various financial instruments, including stocks, futures, and options, on a global scale, without the need for a centralized intermediary. This means that users have full control over their assets on the Injective Protocol.
What’s unique about Injective is that, unlike popular DEXs like Uniswap, it does not use an automated market maker (AMM) formula to manage liquidity.
Instead, it follows the tried, tested, and proven order book model that has been widely used for decades across centralized stock and crypto exchanges.
By employing this model, the exchange can attain the efficiency of traditional finance while maintaining the transparency offered by decentralized finance.
How Does Injective Work?
Several components come together to support the functionality and development of Injective Protocol’s decentralized trading platform.
- Injective Chain
The Injective Chain is a DEX protocol built on Cosmos that allows users to transfer and trade Ethereum-based ERC-20 tokens.
The native blockchain of the INJ token aims to address the scaling and throughput issues faced by many layer-1 networks. It uses the widely popular Ethereum development kits for building apps, making it more accessible to Web3 developers.
The DEX offers several features, such as enabling INJ token holders to bid on baskets of tokens that have been accumulated as trading fees from the exchange, helping traders create and trade new spot and derivatives markets, supporting underwriters who back the derivatives markets hosted on the exchange, obtaining real-world price data that is used to set asset prices, and allowing ERC-20 token holders to easily convert their tokens to Cosmos-native assets.
- Injective Exchange
This is an order book model exchange based on the 0x protocol. The team behind Injective open-sourced all components of the DEX to build a transparent and easily accessible platform.
- Injective Hub
Injective Hub is a dashboard that provides users with the overview and functionality that is required to make the most of the Injective Protocol.
Users can access the hub to stake INJ and become validators that uphold the security of the proof-of-stake blockchain.
INJ holders can also choose to delegate their tokens to network validators to earn a percentage of their rewards.
What is the INJ Token?
INJ is the native utility and governance token of the Injective Chain. It is designed to serve various purposes within the ecosystem, but primarily to incentivize users who contribute to the development of the mainnet.
It has several functions, including governance, staking, paying transaction fees, attracting liquidity, and rewarding.
INJ holders can participate in decision-making regarding key aspects of the ecosystem and earn a passive income by staking their tokens and providing liquidity.
INJ Price Prediction: 2024, 2025, 2030
At the time of writing, INJ is trading at $42.41 – down 2.8% in the last 24 hours.
Based on its current valuation, INJ is estimated to trade at a minimum price of $9.225 and a maximum price of $19.776 in 2024. The average trading of the token for this year is $14.50.
In 2025, the Injective Protocol token is forecasted to trade between a minimum level of $10.787 and a maximum level of $25.050. The average trading price for INJ during that year is estimated to be $17.978.
The 2030 price prediction for the INJ token says that it could trade between $27.15 on the lower end and $55.753 on the upper end of the price spectrum. The average trading price for Injective Protocol during that year is assumed to be $41.453.
Where To Buy INJ Token?
INJ can be traded on the following cryptocurrency exchanges:
Is Injective Protocol (INJ) a Good Cryptocurrency Investment?
Injective Protocol is a decentralized exchange built on the Cosmos blockchain that facilitates cross-chain crypto trading.
The platform eliminates intermediaries to allow users to globally trade various financial instruments, such as stocks, futures, and options, giving them complete control over their assets.
What sets the project apart is its ability to trade across borders and blockchains without any restrictions or limitations that are normally faced by traditional financial markets and exchanges.
It utilizes the order book model to execute trades, meaning each transaction is held directly between the parties involved in the trade, thereby facilitating trades in real-time with minimal delays and lower costs.
The platform’s native utility and governance token INJ also shows incredible long-term price performance and is forecast to increase its value in the long run.
All things considered, I can say that Injective Protocol is a credible cryptocurrency and blockchain project that will be instrumental in decentralizing the traditional finance sector. However, as is the case with all cryptocurrencies, INJ is also prone to extreme market volatility.
Therefore, you should do your research before investing in the token. Also, keep in mind that you should only invest money that you can afford to lose.
Related Articles: 1inch Network (1INCH): Price Prediction 2024, 2025, 2030, Where To Buy, Is It A Good Investment?
