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Injective Protocol, a blockchain platform designed for decentralized applications (dApps), is attracting attention as its native injective (INJ) token is experiencing a price surge, rising by over 22% in the past week.
The INJ token serves as both a utility and governance token, to empower users in shaping the platform’s future.
Injective (INJ) price action and market overview
At the time of writing, the price of INJ stands at $7.07, representing a 9.6% increase on the day. However, on the weekly timeframe, INJ is up by a decent 22.5%. With a current market cap of $565 million and a 24-hour trading volume of $78 million, according to CoinGecko.
The circulating supply of INJ stands at $100 million, contributing to the platform’s liquidity and overall market dynamics.
In assessing market sentiment, the relative strength index (RSI) proves to be a valuable indicator.
Currently, the RSI value stands at 57.9 on the weekly timeframe, suggesting that the INJ market is in a neutral position. This implies a balance between buying and selling pressures, indicating a stable market condition.
The support levels at $5.6 and resistance levels at $7 are crucial thresholds that could influence price movements. A breach above the resistance levels may indicate heightened volatility in the days ahead.
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Utility and governance
Injective Protocol, is a decentralized exchange (DEX) distinguished for its speed, security, and substantial degree of decentralization.
The INJ token enables participation through a decentralized autonomous organization (DAO) structure, allowing holders to propose market listings and protocol upgrades. Injective Labs ensures community influence by abstaining from voting, emphasizing a decentralized governance approach.
The INJ token also acts as collateral for derivatives trading, boosts liquidity incentives for market makers, and enhances protocol security. Through its utility and governance features, the INJ token establishes a community-driven platform, providing diverse perspectives for decision-making processes.
Through its decentralized exchange (DEX), Injective Protocol offers some features. The protocol recently integrated Astroport, solidifying its presence as a participant in cross-chain trading.
With a shared order book infrastructure, the Injective DEX enables cross-chain spot and derivatives trading while eliminating gas fees.
According to the claims made by Injective Protocol, their DEX encompasses an extensive array of advanced features designed to facilitate cross-chain trading. These features include margin trading, derivatives, and futures trading.
This range of functionalities positions Injective as a versatile platform capable of accommodating various financial products and trading strategies. Traders are able to leverage these tools to gain exposure to different assets.
Furthermore, Injective Protocol believes that the recent integration of Astroport into its ecosystem has bolstered its capabilities even further. By extending support for automated market maker (AMM) systems, Injective opens doors to liquidity pools and enhanced trading experiences for its users.
Read more: Injective token gains 24.44% as one of the top movers today