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Injective Protocol DeFi TVL hits record high as INJ price dives

source-logo  invezz.com 23 February 2024 08:11, UTC

Injective, the Mark Cuban-backed protocol, is gaining market share in the Decentralised Finance (DeFi) industry. Data shows that activity in the ecosystem is growing as the crypto bull run gains steam.

According to DeFi Llama, the total value locked (TVL) in Injective has jumped to a record high of over $110 million. This is a remarkable run considering that the assets in the ecosystem stood at less than $15 million in November.

The biggest players in Injective’s ecosystem are Hydro Protocol, Dojoswap, and Helix, which have a TVL of $55 million, $26 million, and $15.6 million, respectively.

Hydro Protocol is a liquid staking platform similar to Lido DAO, the biggest DeFi network in the world. According to its website, its total TVL is $109 million, with $55 million being in liquid staking and $53 million being in farming. Its auto compound platform has $1.81 million in assets.

Helix, on the other hand, is a decentralised exchange (DEX) in the ecosystem. According to CMC, it has grown its market share in the DEX industry in terms of volume. Its total volume in the past 24 hours stood at over $123 million, making it the 13th biggest player in DEX.

The growth of Injective Protocol is happening at a time when INJ, its token, is in a strong bear market. It has dropped by more than 25% from its highest point in 2023 as it continues to underperform other popular names like Bitcoin and Ethereum.

The lack of a strong ecosystem was one of the biggest concerns among analysts as the INJ token price surged in 2023. It jumped by over 2,300% from its lowest point in 2023 to its highest point, giving it a peak market cap of over $3.5 billion.

At the time, the biggest concern among buyers was that the rally was driven by market makers and venture capital firms. Therefore, the ongoing growth of the ecosystem will likely calm some of the critics.

Injective is not the only top performer in 2023 that is struggling this year. Avalanche’s AVAX token has crashed by over 25% from its peak. Solana, on the other hand, has dropped by 20%.

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