Analyst warns  about the soaring Injective (INJ) price

Injective (INJ) price has done well this year, making it one of the top-performing cryptocurrencies in the world. On Thursday, the token surged to a high of $34, which was over 2,550% above its lowest level in 2022. The surge has brought its total market cap to over $2.5 billion, making it the 32nd biggest cryptocurrency in the world.

INJ price chart

What is Injective?

The blockchain industry is made up of many layer 1 and layer 2 networks like Ethereum, Solana, and Avalanche. These networks make it possible for developers to launch and deploy their decentralized applications (dApps) in all industries like DeFi and gaming.

Injective’s goal is to become a leading platform for developing dApps in decentralized finance (DeFi). By focusing on one specific industry, the developers aim to provide tools that creators need. For example, it can process thousands of transactions per second with the average transaction cost being less than $0.01.

Injective is backed by some well-known investors, including Mark Cuban, the billionaire owner of Dallas Mavericks. It is also backed by Pantera, Binance, and Jump. While Injective’s token has surged hard this year, its ecosystem is still small. Some of the most notable players in its ecosystem are Helix, Mito, and Black Panther.

Concerns about INJ price remain

There are concerns about why Injective is in an unstoppable rally. Besides, while the network focuses on finance, it has a Total Value Locked (TVL) of just $10.85 million. Worse, this TVL is dominated by Helix, which has over $8.25 million.

Helix handled over $59 million in transactions in the past 24 hours, making it the 21st biggest exchange in the world. The other dApps in the ecosystem are Levana Perps, Black Panther, and Astroport.

Now, an analyst is warning about the Injective price rally. In a long tweet, an analyst who goes by the name Miya, noted that the price is being manipulated by venture capitalists and market makers. He argued that these participants work to trap retail investors and then coordinate sell-offs and pumps.

Pump and dump schemes are popular in the crypto industry, which is not regulated as the stock market. Crypto exchanges like HTX, OKX, and MEXC are thinly regulated and are not available in the US.

Also, it is relatively easy to manipulate cryptocurrencies because most of them are thinly traded. A few months ago, it was possible to manipulate INJ because of its low volumes.To be clear. INJ price is also being moved by the Fear of Missing Out (FOMO) among investors as other cryptocurrencies rally, as I wrote here.

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