- Injective Protocol is a Mark Cuban-backed blockchain project.
- Its token has more than doubled after the launch of an ecosystem fund.
Injective Protocol, the Mark Cuban-backed blockchain project, is having a good week. INJ, its crypto token, surged to a high of $2.67 this week, the highest level since November 8 of 2022. In all, the token has more than doubled in the past few days.
Why INJ price is rising
Injective Protocol’s token is soaring as investors react to the start of a new major ecosystem fund featuring some of the best-known players in venture capital. The partners, who include Jump Crypto, KuCoin Ventures, Delphi Labs, and Flow Traders, contributed $150 million to the fund.
In a statement, the goal of these funds is to help create a thriving infrastructure and DeFi ecosystem using Injective’s technology. Applicants need to create an application and then fill a form to apply for the funding. Winner of these funds will also receive mentorship by the team. In a statement, the company’s co-founder, Eric Chen, said:
“Developer activity on Injective is rapidly increasing with major projects and this new ecosystem fund will provide unmatched opportunities for new builders entering Web3 and the Cosmos ecosystem overall."
Ecosystem funds are nothing new in the industry. In the past few months, most blockchains have launched their funds in a bid to lure developers. Besides, the industry is getting highly competitive. Avalanche launched the Avalanche Rush program with $180 million while Algorand launched a $300 million fund.
For starters, Injective Protocol is an Ethereum rival that is solely focused on the finance industry. This is its main differentiating factor. It helps developers create quality finance apps such as those in decentralized finance and sports betting. Some of the apps in its ecosystem are Astroport and Frontrunner.
Its benefits are the lower transaction costs and higher speeds considering it is built on Cosmos ecosystem. Cosmos, which also houses Osmosis and ThorChain, is one of the fastest blockchains in the industry/
Injective Protocol prediction
Turning to the daily chart, we see that the INJ crypto price has finally woken up in the past few days. As it rose, the token managed to retest the important resistance level at $2.738, the highest point on November 6 of last year.
Injective also rose above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the overbought level. Therefore, more upside will only be confirmed if it manages to move above that resistance. Until then, it is highly risky to buy it now that it is extremely overbought.
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