What Is Injective (INJ)? Current Prices & Where To Buy

Injective (INJ) is a tremendously versatile DeFi crypto coin that uses its own multifunctional Layer-1 blockchain based on the Cosmos software development kit (SDK).

INJ is built to give developers a wide range of practical programming tools for creating decentralized apps (dApp) that provide users with different financial services.

Stay with us until the end of this review to learn all about Injective and how users and developers can benefit from it.

How Injective (INJ) Works

Unlike many popular crypto projects that utilize already existing, massive blockchains, such as the Binance Smartchain (BSC) or Ethereum (ETH), Injective has its own network. INJ is the native coin of the Injective blockchain, which was built with the popular Cosmos SDK and the CosmWasm web assembly suite. 

Interoperability is one of the key strong points of Injective because it’s compatible with all blockchains built with the Cosmos SDK. However, it’s also compatible with major networks that don’t use Cosmos, such as Ethereum, Solana (SOL), and Polygon (MATIC).

The Injective blockchain was designed with an integrated Ethereum token bridge, which means that projects that use the INJ token are automatically compatible with ETH assets, and there’s no need to bridge them manually.

The main purpose of Injective is to give individuals, developers, and enterprise clients access to a ready-made suite of software solutions for quickly launching all sorts of DeFi platforms. This includes everything from decentralized crypto exchanges, liquidity pools, and staking platforms to crypto loaning protocols and virtual marketplaces. 

Injective relies on CosmWasm for executing smart contracts on all apps that use INJ. In fact, Injective has a lot of pre-made smart contract blueprints for creating DeFi platforms, and developers can simply take an Injective basis for a decentralized exchange and tweak it according to their needs. The same goes for all other types of DeFi dApps, which means that users can save much time using this platform. 

All of these features are facilitated by the INJ coin, which makes INJ a powerful crypto asset because apps that use Injective are fully compatible between themselves. There’s no need to convert different coins when using Injective-based dApps.

On top of that, the INJ coin offers high scalability, and using it as a currency for dApps with hundreds of thousands of active users isn’t an issue because INJ transactions are processed instantly. Also, the network can handle up to 10,000 transactions per second.

What Is Injective (INJ) Used For?

The INJ coin is a Proof-of-Stake (PoS) digital currency, which means users can earn staking rewards while holding INJ in their crypto wallets. 

The Injective blockchain uses validator nodes to approve all transactions on INJ dApps and between crypto wallets. Users can delegate their INJ coins to validators through staking pools and receive a staking reward from INJ network transaction fees.

Injective isn’t governed by the company that launched the project. Instead, the network has a decentralized autonomous organization (DAO) responsible for making all the decisions. The INJ coin is the governance tool of the Injective blockchain, and users who hold INJ coins in their crypto wallets are eligible to vote on all decisions regarding INJ.

Unlike some other DAOs that only decide on significant network upgrades, partnerships, and treasury management, the Injective DAO lets INJ coin holders decide on absolutely all network changes. 

INJ is the currency of all dApps that use the Injective network, which is very practical because instead of creating different native tokens for each platform, developers can simply integrate INJ. Furthermore, it allows developer teams to connect different Injective-based dApps and create cross-platform partnerships between DeFi platforms.

Users can easily take out an INJ loan on one platform and stake a portion of those coins on another protocol while using another portion of the loan for trading on an Injective-based decentralized exchange.

The INJ coin has a built-in fee value capture mechanism that takes 60% of all INJ transaction fees and burns those coins. The Injective burning mechanism is designed to gradually deflate the coin’s supply. Despite the shrinking supply of INJ, if the user base continues to grow, it will boost the price of the coins by making them more scarce and valuable. 

Where to Buy Injective (INJ)?

Traders can invest in INJ across 50+ crypto exchanges, with a total of 80 trading pairs, according to the Injective CoinMarketCap page. 

Buying INJ with fiat currency is only possible on fiat-friendly crypto exchanges that allow users to either directly purchase INJ through the instant buy/sell option or deposit cash and then purchase INJ with an intermediary crypto. You can do this on Kraken, Binance, Coinbase, ByBit, and dozens of other centralized platforms.

INJ is also available on a select few decentralized trading platforms, such as UniSwap, where you can trade Wrapped BNB (WBNB) and Wrapped Ethereum (WETH) for INJ. 

How Long Has Injective (INJ) Been Around? 

The Injective blockchain started out with the support of the Binance crypto exchange in 2018 through its crypto incubator program that helps launch new digital currencies.

Injective was developed by Injective Labs, headed by Alber Chon, an ex-Amazon software engineer, and Erich Chen, an experienced blockchain professional earlier associated with projects like Chainlink (LINK). 

What’s Controversial About Injective (INJ)?

Injective isn’t controversial, but the project’s integration with the Wormhole cross-chain bridge might be an issue for some users. Wormhole is one of the largest blockchain-bridging platforms that support numerous leading blockchains. However, Wormhole suffered a huge hack in 2022 when more than 300 million USD worth of assets were stolen.

Since Injective uses Wormhole to allow users to swap INJ-based tokens with assets on ten additional blockchains, some users are worried about the network’s safety.

It’s also worth noting that Wormhole hasn’t recovered the stolen assets, and users haven’t received any reimbursement. This implies that INJ users might risk permanent losses if the cross-chain bridge doesn’t improve its safety features.

How Many Injective Coins Are There?

The INJ hard cap is 100 million INJ, but due to the coin’s deflationary mechanism, the number of coins in circulation is slowly decreasing over time, and currently, there are 73 million tokens on the market.

Can INJ Be Mined?

The Injective PoS consensus mechanism uses a staking mechanism instead of mining. Users can’t mine new INJ coins.

Market Cap and Price History of Injective (INJ)

INJ has a strong market position between the 100th and 150th mark on CoinMarketCap, along with a market capitalization of 300 million USD.

The coin’s value was highest in May 2021 when it tapped the 21 USD mark, but it has been on a falling trajectory since. During 2022 and early 2023, INJ remained steady in the 2 USD to 4 USD price range. 

Biggest Competitors of Injective (INJ)

Injective is a DeFi-focused Layer-1 blockchain, which means it’s competing with some of the largest smart contract networks on the crypto market, such as Ethereum (ETH), Solana (SOL), and Avalanche (AVAX). All of the listed blockchains are large-cap cryptos with billions of dollars of market value and huge ecosystems of dApps. 

However, these blockchains aren’t geared toward cross-chain compatibility, which is one of the main selling points of Injective. Because of this, Injective might actually manage to advance on the crypto market and grow its user base, especially among dApps developers looking for a network that can support assets across multiple blockchains. 

What Does the Injective (INJ) Project Road Map Look Like?

Injective is trying hard to expand its ecosystem of decentralized platforms and attract new developers to the network. The project launched a 150 million USD ecosystem development fund in early 2023 to help boost the network. Also, Injective is looking to expand its validator nodes and include more reputable companies as INJ network nodes. 

The latest addition to Injective nodes includes Galaxy Digital, a veteran blockchain company that provides users with various crypto services, such as asset management, liquidity, and derivatives trading. 

Pros and Cons of Injective (INJ)

Pros

• Users can earn a portion of the transaction fees by staking INJ.
• INJ is compatible with various blockchains thanks to the Cosmos SDK, the integrated Ethereum bridge, and the integration with Wormhole.
• dApp developers can use INJ as the native crypto for their platforms. They don’t have to launch new custom tokens.

Cons

• Numerous Layer-1 crypto networks are far more popular than Injective, and their coins have a much higher market cap, which makes it difficult for INJ to grow.