- Injective price has lost momentum this year after surging in 2023.
- Helix, a DEX in its ecosystem, has gained substantial market share.
- It has grown to become the sixth biggest DEX in the world.
Injective price has moved sideways this year as last year’s momentum faded. The INJ token was trading at $33.8 on Friday even after some major developments in its ecosystem. It remains about 2,700% above its lowest point in 2023.
Helix market share gains
Injective was one of the best-performing cryptocurrencies in 2023 as it moved from obscurity to become one of the biggest players in the blockchain industry. Its market cap surged to more than $3 billion controversially as analysts pointed the lack of an ecosystem.
Some analysts believe that Injective’s surge was manipulated by venture capital firms and market makers. We cannot confirm these allegations.
Now, there are signs that the ecosystem is coming to life as activity in its network has jumped. Data by DeFi Llama shows that the Total Value Locked (TVL) in its ecosystem has risen to $41 million, which is fairly small. Besides, a network like Sui has over $400 million in assets.
DeFi TVL is not always a good measure of a network’s performance. Still, a dig deeper shows that Helix, a leading decentralized exchange (DEX) in the ecosystem is gaining market share. According to CoinMarketCap, Helix handled over $251 million in transactions in the past 24 hours.
This surge helped it become the 6th biggest DEX exchange in the world after dYdX V4, Uniswap, Jupiter and dYdX. The most popular tokens traded in Helix are INJ, Wrapped Solana, WETH, KAVA, Cosmos, and Celestia. In all, Helix handled over $1.6 billion in the past seven days, bringing the cumulative total to over $19.3 billion.
Injective is also seeing more demand from investors. According to its Twitter feed, there are now over 50 million INJ staked. At the current price, these tokens are worth over $1.65 billion and the number is growing. Over 170k unique delegators have staked their tokens.
Injective price forecast
Turning to the daily chart, we see that the INJ price is not doing well as it has moved sideways since the year started. It has remained below the key resistance at $44.93, where it formed a double-top pattern. Injective has remained inside the 50-day and 25-day Exponential Moving Averages (EMA).
The Average Directional Index (ADX) and the Average True Range (ATR) have moved downwards. Therefore, the outlook for Injective is neutral for now, with the key support and resistance levels to watch being at $29.30 and $45. The bias is that it will retest the support at $29 because of the double-top pattern.
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