Injective (INJ) Rallies 40% as Community Votes in Favor of New Deflationary Injective 3.0 Upgrade

Injective (INJ) rose for six consecutive days, reaching an intraday high of $26, its highest level since Dec. 18. The token has surged by 40% from its lowest point this year.

Cryptocurrency token INJ, the native asset of the layer-1 blockchain Injective, enjoyed a six-day rally, reaching an intraday high of $26 on March 8 — its highest level since Dec. 18.

The token, which ranks 112th by market capitalization, has surged by 40% from its lowest point this year.

The rally is primarily driven by a recent community vote to transition from Injective 2.0 to Injective 3.0, which will introduce new deflationary features.

"The governance proposal to begin the next phase of $INJ 3.0 has passed with 99.99% of community members voting YES," a recent tweet reads.

The upgrade will adjust the token supply based on staked INJ, enabling real-time adaptation to staking activity. This change is expected to boost the deflation rate by 400%, making Injective more resilient to inflationary pressures.

The shift to a more deflationary model is likely to increase staking rewards for INJ holders. According to StakingRewards, Injective currently offers a staking yield of 10.68% with a staking ratio of 56%, making it one of the highest-yielding cryptocurrencies.

By comparison, Ethereum (ETH) offers a 3.13% yield, while Solana (SOL) and Sui (SUI) yield 7.06% and 2.81%, respectively.

The price also rebounded as the total value locked in Injective's decentralized finance (DeFi) network rose to over $55.95 million, marking its highest level since June last year.

Much of this growth is being driven by key dApps such as Hydro, Helix, Neptune Finance, and DojoSwap. Notably, the stablecoin market cap on Injective stands at $30 million.

However, Injective, which counts billionaire investor Mark Cuban among its backers, has struggled to attract developers to its ecosystem.

In contrast, newer layer-1 and layer-2 networks such as Sui, Aptos, and Base have drawn billions of dollars into their respective ecosystems.

Injective price analysis: 4-hour chart

INJ/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that INJ has staged a strong recovery in recent days. This rebound began after the token bottomed out at $18.42 on Dec. 16.

Since then, it has moved above the key neckline resistance at $23.80 and crossed the Woodie pivot point at the same level.

The Percentage Price Oscillator has moved above the zero line, indicating positive momentum. As a result, INJ is likely to continue rising, with buyers targeting the first resistance level of the Woodie pivot point at $29.

This level also aligns closely with the 61.8% Fibonacci retracement point at $28.87.

A drop below the pivot point at $23.80, however, would invalidate the bullish outlook and signal the potential for further downside.