TL;DR
- Injective (INJ) is accelerating its token burning process, leading to a more than 27.6% increase in INJ value over the past week, reaching $27.82.
- The next token burning event is set for May 22, with an expected destruction of approximately $322,000 worth of INJ tokens.
- The ecosystem has attracted around $70 million in liquidity, nearly a 50% increase since early May, and is backed by significant investors and venture capital funds.
Injective (INJ), an emerging platform in the DeFi sector, is accelerating its token burning process, demonstrating growing network usage. With the crypto market recovering, the value of INJ has increased by over 27.6% in the last week, reaching $27.82. Its upward trend has been primarily driven by token burning, a strategy aimed at reducing the circulating supply of INJ and consequently increasing its value.
The Injective team has announced that the next token burning event will take place on May 22, where approximately $322,000 worth of INJ tokens are expected to be destroyed. At this rate, it is projected that around 100,000 additional INJ tokens will be burned in the second quarter of 2024. This process occurs through “burn auctions,” weekly events designed to limit the amount of INJ in circulation and reward participants.
The 150th $INJ burn auction is set to happen on May 22nd.
An estimated amount of approximately $322,000 worth of INJ will be burned 🔥https://t.co/GpfC3ZIT2F
— Injective 🥷 (@injective) May 20, 2024
Each Injective burn auction is based on the project’s weekly fees, denominated in ETH and WBTC. During these auctions. INJ owners bid to purchase the pool at the highest possible price, often at a discounted price compared to the market. The amount of INJ paid is then removed from the pool through burning, sending it to a non-recoverable address.
Injective Aims to Become Deflationary
Injective’s goal is to make its token deflationary, achieving one of the highest burn rates among crypto projects. With a total supply of 100 million tokens, of which over 93 million are in circulation. Additionally, all tokens are unlocked. Having completed their vesting periods in recent years, meaning there are no relevant unlocking events pending.
Injective’s ecosystem features a comprehensive range of applications, predominantly decentralized exchanges (DEX). Helix DEX and Hydro Protocol, two of its main protocols, have experienced significant growth in recent weeks. The network has attracted approximately $70 million in liquidity, nearly a 50% increase since early May.
The platform is backed by significant investors and venture capital funds such as Panthera. QCP Capital, Hashed Fund, CMS Holdings, Blocktower Capital, Jump Crypto, and BH Digital. The project has also received support from crypto billionaire Mark Cuban. The public sale of Injective raised around $7 million, while over $50 million came from private rounds and VC funds. It is noteworthy that the team allocation represents 20% of all tokens. A significant amount that may influence the market in the medium term.
