- Injective price continues its upward trajectory, gaining over 25% last week.
- INJ 3.0 upgrade introduces a deflationary mechanism, significantly reducing token supply.
- Bullish on-chain metrics: Rising Total Value Locked (TVL) and Open Interest (OI) signal growing demand.
Injective (INJ) has extended its rally for seven consecutive days, trading above $26 as of Tuesday. The INJ 3.0 upgrade, announced recently, aims to reduce the token supply progressively until Q1 2026, positioning INJ as one of the most deflationary assets in the crypto market. This supply shock, coupled with increasing on-chain activity, reinforces a strong bullish case for INJ.
INJ 3.0 Upgrade: A Deflationary Catalyst
The Injective community approved a governance proposal to implement INJ 3.0, which focuses on drastically reducing the circulating supply of INJ tokens. This strategic move is designed to enhance scarcity, potentially driving long-term price appreciation as demand outpaces supply.
👉 Learn how deflationary tokens like INJ gain value over time
"The new chapter of INJ 3.0 is live to dramatically reduce the token supply, making INJ one of the most deflationary assets over time." — Injective Team
Price Analysis: Key Levels to Watch
- Current Price: $26.19 (as of Tuesday)
Resistance Levels:
- Immediate: $31.12 (18% upside potential)
- Strong support at 50-day EMA ($24.41)
Indicators:
- RSI (58): Bullish momentum
- MACD: Confirmed bullish crossover
Chart Outlook
A sustained breakout above $31.12 could trigger another rally, while holding above the 50-day EMA reinforces bullish sentiment.
On-Chain Metrics Support Bullish Trend
1. Rising Open Interest (OI)
- OI surged from $116M to $197M (Jan 1–Jan 6).
- Indicates new capital inflows and trader confidence.
👉 Why Open Interest matters in crypto trading
2. Total Value Locked (TVL) Growth
- TVL increased by 29.6% ($50M → $65M) in January.
- Reflects higher protocol activity and user engagement.
FAQs
Q: What is INJ 3.0?
A: A supply-reducing upgrade that makes INJ more deflationary by systematically cutting token circulation.
Q: Why is INJ price rising?
A: Strong demand, reduced supply (INJ 3.0), and positive on-chain metrics like TVL/OI growth.
Q: What’s the next price target for INJ?
A: If bullish momentum holds, $31.12 is the next key resistance.
Conclusion
INJ’s deflationary mechanism and strong on-chain activity make it a standout asset in 2025. Traders should monitor $31.12** as the next breakout level, while dips toward **$24 may present buying opportunities.
Always conduct your own research before investing.
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