Injective (INJ) has emerged as a popular cryptocurrency token among investors and enthusiasts after bouncing back from a significant decline.
This comes after a series of positive developments from the Injective team, such as the burning of 12,266 INJ tokens, the publication of an in-depth paper on the Injective Token ($INJ), and the integration of the Injective Protocol into Binance Pay, a prominent payment platform in the cryptocurrency industry.
Having surged by over 276% in the past year and more than 10% in the last month, the Injective price is once again on the rise, showing an increase of approximately 6% over the past day and becoming the second-best-performing cryptocurrency on CoinMarketCap.
INJ Daily Price Chart (Source: Coinmarketcap.com)
The return of strength has given hope to analysts who think INJ may have hit its lowest level. But what is causing this increase in price? Let’s explore the main factors behind the recent rise in Injective (INJ) value.
Reasons Why Injective Price is Soaring
The remarkable surge in the price of Injective tokens can be attributed to an official announcement made by the project’s team on June 5. They declared that 12,266 $INJ tokens, totaling $345,865 at press time, were permanently removed from circulation, indicating increased user engagement with token burning.
Additionally, anticipation grew when they stated that by the following week, Injective users would have collectively burned an impressive 6 million INJ tokens, which represents a sum of $169,182,660 at present. According to them, increased usage leads to more protocol revenue and, subsequently, more INJ tokens being burned. Similarly, at the moment, Injective ranks second only to Solana in terms of protocol revenues.
Another important factor contributing to the increase in the price of INJ tokens is the integration with Binance Pay on June 4. Binance Pay is a prominent global payment platform in the cryptocurrency industry. This integration allows millions of users to use INJ for payments and shopping, enhancing the utility and adoption of Injective (INJ).
By providing a user-friendly and adaptable transaction system through Binance Pay’s intuitive interface, Injective is positioning itself as a practical and convenient payment method across platforms supporting Binance Pay, including for the purchase of Amazon gift cards.
Moreover, the Injective (INJ) team has officially published a comprehensive document that explores the fundamental utilities and mechanisms driving a programmable token economy for deflationary acceleration.
The 14-page document elaborates on the project’s unique approach to tokenomics, involving dynamic supply control and strategic token burns.
INJ Price Analysis
The price of the Injective coin is on the verge of surpassing a multi-week resistance level to recover from the losses it experienced a few months ago. INJ holders are showing strong support for this potential increase, likely due to exciting developments in the ecosystem.
The Injective price challenges the $28 resistance level to surpass the $30 barrier. If successful, this could lead to a recovery rally towards $40, a level last seen in March, representing a potential 30% increase from when the altcoin dropped in mid-April.
Conversely, if the $28 and $30 levels are not breached, Injective’s price could drop back to around $20. This level has been a vital support in recent weeks, and a drop below it would negate the bullish outlook.
