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Why did the price of INJ fall?

Injective (INJ) dropped 4.39% in the last 24 hours, performing worse than the overall crypto market, which fell 1.56%. Here’s why:

  1. DeFi Controversy Impact – A public disagreement involving Injective Labs raised concerns about how decentralized DeFi projects really are.
  2. Technical Breakdown – INJ’s price fell below an important support level at $9.29, with indicators showing bearish momentum.
  3. Altcoin Market Weakness – Fear in the crypto market and a sharp decline in altcoin performance reduced investors’ willingness to take risks.

In-Depth Analysis

1. DeFi Controversy Fallout (Negative Impact)

What happened:
A dispute between Hyperliquid’s CEO Jeff Yan and Injective Labs engineer Bojan Angjelkoski brought attention to centralization issues in DeFi. Yan accused centralized exchanges (CEXs) of hiding liquidation data, while Angjelkoski pointed out that Hyperliquid itself relies on centralized systems (Yahoo Finance).

Why it matters:
This debate raised doubts about how decentralized some DeFi projects truly are. Although not directly about Injective (INJ), the controversy likely made investors more cautious about mid-sized DeFi tokens, including INJ.

What to watch:
INJ offers a staking yield of 12.75% through Pineapple Financial’s treasury. If institutional investors return to stake INJ, it could help stabilize the price.

2. Technical Breakdown (Negative Impact)

What happened:
INJ’s price fell below the 50% Fibonacci retracement level at $9.29 and is trading below key moving averages (7-day average at $10.13, 30-day average at $12.22). Technical indicators like the MACD and RSI show the coin is oversold but haven’t confirmed a price rebound yet.

Why it matters:
This suggests traders are selling after failing to keep the price above $10. With trading volume down nearly 49%, lower liquidity makes price drops more severe.

Key level to watch:
If INJ can close above $9.50, it might see short-term relief. If not, the next support level to watch is $7.98.

3. Altcoin Market Sentiment (Mixed Impact)

What happened:
The crypto Fear & Greed Index is at 37, indicating fear among investors. The Altcoin Season Index dropped 35% this week, showing money moving from altcoins to Bitcoin (BTC dominance rose to 58.81%).

Why it matters:
INJ’s 28% weekly drop fits the broader trend of altcoin weakness. However, its sharper 4.39% decline over 24 hours suggests some challenges specific to the project.

Conclusion

INJ’s recent price drop is due to a mix of overall market caution, technical selling pressure, and fallout from DeFi infrastructure debates. While staking demand from groups like Pineapple Financial offers some support, traders remain focused on short-term risks.

Key question: Can INJ hold above the important $9 level through October 16, or will continued outflows from altcoins push the price lower?


What could affect the price of INJ?

Injective (INJ) is navigating a mix of factors that could reduce its supply while adapting to changes in the altcoin market.

  1. Institutional Treasury Buys – Pineapple Financial’s recent $8.9 million purchase of INJ (October 7) shows growing corporate interest. They’re staking these tokens, which takes them out of circulation.
  2. EVM Mainnet Launch – The upcoming Ethernia upgrade (expected in Q4 2025) will let developers bring Ethereum apps to Injective easily, potentially increasing network use.
  3. Staked ETF Prospects – The SEC is reviewing ETF applications for INJ (from Rex Shares and Osprey). Approval could open the door to more institutional investors.

Deep Dive

1. Institutional Demand & Tokenomics (Positive Outlook)

Pineapple Financial has a $100 million digital asset strategy that includes staking 678,353 INJ tokens at an annual yield of 12.75%. This locks up about 0.7% of all INJ tokens available. Other companies might follow suit, adding to the deflationary effect since Injective’s token burn has already removed 6.6 million tokens (worth $31 million) in 2024.

Why it matters: Staking reduces the number of tokens available for sale and encourages holders to keep their tokens for yield. This could help stabilize or increase INJ’s price, which has dropped 32% over the past month. However, depending heavily on one company like Pineapple Financial carries risk if they change their approach.

2. EVM Adoption & Ecosystem Growth (Mixed Outlook)

Injective’s upcoming EVM-compatible mainnet will allow Ethereum developers to move their decentralized apps (dApps) to Injective without rewriting code. The AI-powered iBuild platform, demonstrated in August 2025, aims to make building on Injective even easier.

Why it matters: This could attract more decentralized finance (DeFi) projects to Injective. But competition is strong, with platforms like dYdX v4 and Vertex Protocol already leading in derivatives trading. Success depends on how many Ethereum developers decide to switch. If few do, Injective might remain a niche player.

3. Regulatory Catalysts (Both Upside and Downside Risks)

In May 2025, the SEC indicated that staking might not classify as securities, which is positive for INJ ETF applications. However, the Commodity Futures Trading Commission (CFTC) is closely watching crypto derivatives, including Injective’s perpetual contracts, which could lead to stricter rules.

Why it matters: If the ETFs get approved, INJ could see a price boost similar to Bitcoin’s 58% rally after its 2024 ETF approval. On the other hand, tougher rules on derivatives could hurt Injective’s main revenue source, since 63% of its Q3 fees came from perpetual contracts.

Conclusion

INJ’s future depends on balancing growing institutional interest with the overall altcoin market mood (currently low, with the Altcoin Season Index at 36). Keep an eye on the $8.60 to $9.30 price range—falling below this could lead to further drops toward $7. Also, watch how quickly the EVM upgrade leads to real growth in total value locked (TVL) on the platform.


What are people saying about INJ?

The Injective community is divided between hopes for a price breakout and concerns about a possible correction. Here’s what’s trending right now:

  1. Potential to reach $35 if key resistance is broken
  2. Expectations of a parabolic price surge amid volatile swings
  3. Optimism around ETF filings driving institutional interest
  4. Increased developer activity sparked by EVM integration

Deep Dive

1. @WorldOfCharts1: $35 Target if Resistance Clears 🔥 Bullish

"Once This Horizontal Area Got Cleared, Injective Can Hit $35 In Coming Days"
– @WorldOfCharts1 (89k followers · 420k impressions · 2025-09-09 08:19 UTC)
View original post
What this means: Technical analysts believe that if Injective’s price breaks above $12.50, it could trigger a rally lasting several weeks. However, the price is currently moving sideways within a range.

2. @seth_fin: "Stealthy Ninja" Pump Anticipation 🚀 Bullish

"When Injective starts to move it will be parabolic... Don’t blink or you’ll miss the pump."
– @seth_fin (62k followers · 287k impressions · 2025-09-03 13:57 UTC)
View original post
What this means: Traders expect sharp price moves soon. Because Injective has a relatively low number of coins available for trading (99.97 million circulating supply), any big buying or selling can cause big price swings.

3. CoinMarketCap Analysis: $11-$15 Volatility Battle ⚔️ Mixed

Recent price swings ranged between $8.98 and $11.58, with sellers dominating on weekends and buyers pushing back midweek. Key price levels to watch:

4. Canary Capital: Staked INJ ETF Filing 📜 Bullish

A Delaware-based trust registered with the SEC has filed for an ETF focused on staked Injective tokens, similar to the 21Shares European product.
– Reported 2025-06-10 08:30 UTC
View original post
What this means: Approval of this ETF could bring more traditional financial investors into Injective. However, regulatory approval usually takes 8 to 12 months after filing, so timelines are uncertain.

Conclusion

The overall outlook for INJ is positive in the long term but cautious in the short term. Traders are closely watching the $12 support level to hold, while developers are encouraged by ecosystem growth thanks to EVM integration (Orbiter Finance). Keep an eye on updates about the Canary Capital ETF and daily price closes above $11.60 to understand potential momentum changes.


What is the latest news about INJ?

Injective is balancing growing interest from big financial players with some challenges in its ecosystem. Here’s what’s new:

  1. $100M Treasury Buys INJ (October 7, 2025) – Pineapple Financial, a publicly traded fintech company, started staking $8.9 million worth of INJ tokens.
  2. Pre-IPO Perpetual Futures Launch (October 1, 2025) – New synthetic markets for private companies like OpenAI are now available on Helix DEX.
  3. Staked INJ ETF Application Filed (July 29, 2025) – Rex Shares and Osprey Funds have applied to the SEC for an ETF that pays out staking rewards.

Deep Dive

1. $100M Treasury Buys INJ (October 7, 2025)

What happened: Pineapple Financial (NYSE: PAPL) started a $100 million Digital Asset Treasury strategy by buying 678,353 INJ tokens (about $8.9 million). They are staking these tokens to earn roughly 12.75% annual returns. CEO Shubha Dasgupta said they believe in INJ’s design, which reduces supply over time, and Injective’s decentralized finance (DeFi) platform.
Why it matters: This is a positive sign because it lowers the number of tokens available on the market and shows that a major company trusts Injective’s staking system. However, Pineapple’s stock price went up 15% after the news, which could lead to some selling if investors take profits.
(Blockworks)

2. Pre-IPO Perpetual Futures Launch (October 1, 2025)

What happened: Injective introduced on-chain perpetual futures contracts for private companies like OpenAI and SpaceX on Helix DEX. Traders can use up to 5x leverage with synthetic assets, supported by private market data from Caplight.
Why it matters: This expands what Injective can offer in DeFi, making it possible to trade derivatives on private companies before they go public. However, there is some uncertainty around regulations, and users in the U.S. and Canada are currently restricted. Trading volume reached $1 billion in early October.
(Cointelegraph)

3. Staked INJ ETF Application Filed (July 29, 2025)

What happened: Rex Shares and Osprey Funds filed with the SEC to create an ETF that tracks the price of INJ and passes staking rewards to investors. This ETF would be part of the ETF Opportunities Trust.
Why it matters: If approved, this ETF could attract more institutional investors to INJ by offering a regulated way to earn staking rewards. However, the SEC has not yet responded to the filing, similar to delays seen with Ethereum ETFs.
(CoinDesk)

Conclusion

Injective’s recent developments—including treasury purchases, new derivative products, and ETF plans—show efforts to connect traditional finance (TradFi) with decentralized finance (DeFi). While growing demand for staking and innovative products are positive signs, regulatory challenges and cautious market sentiment (CMC Fear & Greed Index at 37) remain concerns. The upcoming launch of Injective’s EVM mainnet later this month could be a key moment to boost developer activity and meet institutional expectations.


What is expected in the development of INJ?

Injective’s roadmap is focused on growing its decentralized finance (DeFi) infrastructure, increasing adoption by institutions, and expanding its overall ecosystem.

  1. EVM Mainnet Launch (Q4 2025) – Completing the Ethernia upgrade to make Injective compatible with Ethereum.
  2. Likwid Integration (Q4 2025) – Launching permissionless margin trading and lending.
  3. Pineapple Financial Phase 2 (2026) – Increasing $INJ token purchases and integrating with on-chain treasury management.
  4. Staked INJ ETF Approval (2026) – Awaiting regulatory approval for a U.S. staking ETF product.

Deep Dive

1. EVM Mainnet Launch (Q4 2025)

Overview:
The Ethernia upgrade will complete Injective’s mainnet to be compatible with Ethereum’s Virtual Machine (EVM). This means developers who build apps using Ethereum’s programming language, Solidity, can now deploy their apps on Injective. Plus, they’ll have access to liquidity from the Cosmos ecosystem through the Inter-Blockchain Communication (IBC) protocol. A beta testnet was successfully run in July 2025 (Cryptopotato).

What this means:

2. Likwid Integration (Q4 2025)

Overview:
Likwid is a protocol that allows users to trade on margin and borrow funds without needing permission from a central authority. It will launch on Injective’s EVM mainnet, enabling users to borrow against their crypto assets freely (Ciciyingying).

What this means:

3. Pineapple Financial Phase 2 (2026)

Overview:
Pineapple Financial, after buying $8.9 million worth of $INJ tokens in Phase 1, plans to make larger purchases and integrate Injective’s real-world asset (RWA) modules to manage treasury funds on-chain (Ciciyingying).

What this means:

4. Staked INJ ETF Approval (2026)

Overview:
Rex Shares and Osprey Funds filed for a staked $INJ exchange-traded fund (ETF) in June 2025. If approved, this ETF would allow traditional investors to earn staking rewards through a regulated investment product (Binance News).

What this means:

Conclusion

Injective’s roadmap combines important technical upgrades like the EVM compatibility, new DeFi features such as Likwid’s margin trading, and institutional growth through ETFs and Pineapple Financial’s involvement. The project’s success will depend on favorable regulatory developments and strong adoption by developers. Although $INJ has dropped 56% year-over-year, the rising TVL suggests potential for renewed growth. Keep an eye on the EVM mainnet adoption and ETF approval updates to gauge future momentum.


What updates are there in the INJ code base?

Injective is making big strides with new technology updates, including Ethereum compatibility, security improvements, and AI-powered tools.

  1. Ethernia EVM Mainnet Launch (August 31, 2025) – Combines two technologies (WASM + EVM) to support cross-chain decentralized finance (DeFi) and Ethereum’s popular programming language, Solidity.
  2. iBuild AI Platform Demo (August 27, 2025) – Lets users build decentralized apps (dApps) without coding, using simple language commands.
  3. v1.16.5 Upgrade (October 12, 2025) – Fixes and stability improvements for network validators and node operators.

Deep Dive

1. Ethernia EVM Mainnet Launch (August 31, 2025)

What happened: Injective’s new upgrade, called Ethernia, adds Ethereum Virtual Machine (EVM) support alongside its existing technology. This means developers who build apps on Ethereum can now easily create and run their apps on Injective’s fast and low-cost network.

This upgrade combines the best of both worlds: Ethereum’s large developer community and Injective’s quick transaction speeds (finalizing transactions in about 1 second) plus access to liquidity pools from the Cosmos ecosystem. Users with MetaMask, a popular Ethereum wallet, can already try this on the test network.

Why it matters: This is great news for Injective (INJ) because it opens the door for more developers to build on its platform, potentially speeding up innovation in decentralized finance and increasing the flow of assets across different blockchains.
(Source)

2. iBuild AI Platform Demo (August 27, 2025)

What happened: iBuild is a new tool that lets anyone create decentralized apps on Injective just by typing what they want in plain English—no coding needed.

At a recent event in New York City, a live demonstration showed how a simple text prompt was turned into a working dApp in just minutes. This tool is aimed at people who aren’t programmers, making it easier for more people to join the Web3 space.

Why it matters: This could be a positive development for INJ, as it lowers the barrier to entry for building apps. However, its success depends on how well it works and how many people use it. If it becomes popular, it could grow the Injective ecosystem, but there’s also a risk of too many low-quality apps flooding the market.
(Source)

3. v1.16.5 Upgrade (October 12, 2025)

What happened: The latest software update focuses on improving the stability of the network’s validators (the computers that help run the blockchain). It includes ready-to-use software packages and support for different computer systems.

Validators need to update their software before a certain point, or the network will stop working properly. This update fixes important issues but doesn’t add new features.

Why it matters: This is a routine maintenance update. It keeps the network running smoothly but doesn’t directly affect users or bring new capabilities. Validators should update promptly to avoid any interruptions.
(Source)

Conclusion

Injective is balancing two key goals: attracting more developers by supporting Ethereum tools and AI-powered app creation, while also strengthening its network’s reliability. The upcoming EVM mainnet launch could attract significant liquidity, and the iBuild platform could change how decentralized apps are made.

Will Ethereum developers flock to Injective’s fast and affordable network, or will AI-driven app creation reshape the ecosystem first?