Why did the price of INJ go up?

Injective (INJ) increased by 1.81% in the past 24 hours, standing out as the overall crypto market declined. This short-term gain contrasts with a 32.74% drop over the last 30 days. The recent positive movement is mainly due to growing interest in ETFs and institutional buying.

1. ETF Filing Sparks Interest – 21Shares submitted an application to the SEC for a spot INJ ETF, renewing institutional enthusiasm.
2. Institutional Buying and Staking – Pineapple Financial’s $100 million INJ purchase and staking strategy has reduced available supply.
3. Technical Signs of Recovery – Indicators like the RSI suggest a possible short-term price rebound.

In-Depth Analysis

1. ETF Momentum (Positive Influence)

Background:
On October 20, 2025, 21Shares filed with the SEC to launch a spot INJ ETF, following a similar application by Canary Capital in July. This puts INJ in a small group of altcoins with multiple ETF proposals, signaling growing institutional support.

Why it matters:

• ETFs provide a regulated way for investors to gain exposure to cryptocurrencies, attracting long-term capital and reducing selling pressure from short-term traders.
• Past examples with Bitcoin and Ethereum ETFs show that approval processes often lead to price increases, even if the gains come later.

What to watch:
Keep an eye on SEC comments about these filings and updates from 21Shares and Canary Capital.

2. Institutional Accumulation (Positive Influence)

Background:
On October 7, 2025, Pineapple Financial bought $8.9 million worth of INJ (about 678,353 tokens) as part of a larger $100 million treasury plan. All these tokens are staked, earning roughly 12.75% annually.

Why it matters:

• Staking these tokens effectively locks up about 7% of the circulating supply, limiting how many tokens are available to sell.
• When publicly traded companies hold crypto, it often encourages other institutions to follow suit.

What to watch:
Look for announcements about more corporate treasury purchases or changes in staking rewards.

3. Technical Rebound (Mixed Signals)

Background:
INJ’s price has stabilized around the $8.25 pivot point, with the Relative Strength Index (RSI) moving out of oversold territory (currently 32.15). However, the MACD indicator remains bearish.

Why it matters:

• Short-term traders might see the RSI improvement and price support as a buying opportunity.
• For a stronger upward move, INJ needs to break above its 30-day moving average at $10.83, which is about 29% higher than the current price of $8.39.

Key level to watch: A close above $8.67 (the 50% Fibonacci retracement) could lead to a target near $9.83.

Summary

Injective’s recent 24-hour price increase reflects optimism around ETFs, less selling pressure due to staking, and some technical buying. However, broader market challenges like Bitcoin’s dominance (59.18%) and overall market fear may limit further gains.

What to monitor: The SEC’s timeline for ETF decisions and whether Pineapple Financial increases its INJ holdings.

What could affect the price of INJ?

Injective’s price is balancing between positive factors like token burns and ETF filings, and challenges from broader market trends.

1. ETF approvals – Two active filings could bring in institutional investors (positive)
2. Token burns – October burn aims to reduce supply (positive)
3. Altcoin sentiment – Bitcoin’s strong market share (59%) puts pressure on INJ (negative)

Deep Dive

1. ETF Momentum (Positive Impact)

Overview:
21Shares and Canary Capital have filed for spot INJ ETFs in the U.S., with decisions from the SEC expected by early 2026. If approved, these ETFs would allow traditional investors to invest in Injective without having to manage the cryptocurrency directly. Pineapple Financial’s recent $100 million purchase of INJ tokens (CryptoTimes) shows growing institutional interest.

What this means:
If the ETFs get approved, Injective could see a price boost similar to Bitcoin’s 160% rise after its spot ETF approval in 2024. However, altcoins like INJ face tougher regulatory hurdles. If the ETFs are denied, there might be short-term selling pressure, but with a market cap of $740 million, INJ has room to bounce back.

2. Supply Dynamics (Mixed Impact)

Overview:
Injective plans a token burn in October 2025, permanently removing some INJ tokens from circulation. The protocol already burns 60% of fees collected from decentralized apps, totaling 6.6 million INJ (about $55 million) burned since 2023. At the same time, staking rewards of around 12.75% encourage holders to keep their tokens, which reduces selling pressure.

What this means:
Token burns create deflationary pressure that can help increase value during strong market phases. However, current daily fees are low (about $98), so the immediate impact of burns is limited. Continued growth in Injective’s ecosystem, especially through its EVM compatibility and iBuild developer tools, is essential to increase fees and burn rates.

3. Macro Pressures (Negative Impact)

Overview:
Bitcoin holds 59% of the total cryptocurrency market cap as of October 2025, which tends to limit gains for altcoins like INJ. The 90-day price correlation between INJ and Bitcoin is high at 0.82. The market’s Fear & Greed Index is at 28 out of 100, indicating cautious investor sentiment that favors stablecoins over riskier altcoins.

What this means:
For INJ to break free from Bitcoin’s influence, either the overall altcoin market needs to rally, or INJ requires its own positive news, such as ETF approval. The 200-day exponential moving average (EMA) at $13.20 is a key resistance level, currently about 38% below INJ’s price.

Conclusion

Injective’s future depends on regulatory progress with ETFs and growth in its ecosystem to counteract broader market challenges. The upcoming October token burn and the early 2026 ETF decision create opportunities for significant upside. Keep an eye on the $9.83 Fibonacci level—if INJ holds above this, it could signal a positive trend change.

Will institutional investments through ETFs be enough to overcome Bitcoin’s strong influence on altcoins?

What are people saying about INJ?

The Injective (INJ) community is balancing hope and caution as excitement around a potential ETF meets uncertain price charts. Here’s what’s making headlines:

1. ETF excitement – 21Shares has filed with the SEC, sparking hopes for institutional investment 🏛️
2. Price swings – Experts are divided on whether INJ will drop below $8 or bounce back toward $15 📉📈
3. Token burn countdown – A planned burn in October could reduce supply and increase token value 📆

Deep Dive

1. @MrMinNin: “3 Catalysts for INJ’s Next Leg Up”

“ETF filing + Oct token burn + DeFi/RWA narrative = institutional alt play”
– @MrMinNin (12.3K followers · 284K impressions · 2025-10-22 19:03 UTC)
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What this means: This is a positive outlook. The ETF filing could bring in big institutional investors, while the upcoming token burn reduces supply, potentially increasing value. The focus on decentralized finance (DeFi) and real-world assets (RWA) fits current market trends.

2. @ali_charts: “INJ Breakdown Confirmed”

“$INJ has entered new leg down after ascending triangle fail”
– @ali_charts (478K followers · 2.1M impressions · 2025-08-30 20:01 UTC)
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What this means: This is a bearish signal. INJ’s price fell below $8.50, breaking an important chart pattern. The next likely support levels are $7.80 (the low from May 2025) and $6.34 (the bottom of the 2024 cycle).

3. @kylobtc: “Burn Mechanics = Supply Shock”

“Every dApp transaction burns INJ – usage up 47% last month = tighter supply”
– @kylobtc (89K followers · 621K impressions · 2025-09-21 04:00 UTC)
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What this means: This is a positive long-term sign. About 60% of fees collected by the Injective protocol are used to buy back and burn tokens, reducing supply. Despite some tokens being unlocked this year, circulating supply has dropped 11% so far, and the October burn could speed this up.

Conclusion

The overall view on Injective (INJ) is mixed but leans positive. Big-picture factors like the ETF filing and token burn could outweigh short-term price weakness. Although the token has dropped 32% in the past month, a $100 million treasury allocation by Pineapple Financial (planned for October 2025) and the SEC’s review period for the 21Shares ETF (decision expected in early 2026) suggest investors may be buying at current prices. Keep an eye on the SEC’s ETF feedback and post-burn supply numbers—if the ETF is rejected or the burn has little effect, prices could fall further. But if the ETF is approved or the burn significantly reduces supply, a recovery to $15–$25 could be on the horizon.

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What is the latest news about INJ?

Injective is making moves toward wider institutional use and reducing its token supply, even as the market tests important price levels. Here’s the latest update:

1. 21Shares Files INJ ETF (October 20, 2025) – A new application with the SEC shows growing interest from big investors.
2. Pineapple’s $100M INJ Investment (October 7, 2025) – A publicly traded fintech company is staking INJ to earn returns.
3. October Token Burn Scheduled (October 22, 2025) – Injective plans to reduce the number of tokens available, aiming to increase scarcity.

In-Depth Look

1. 21Shares Files INJ ETF (October 20, 2025)

What happened: The asset manager 21Shares has applied to the U.S. Securities and Exchange Commission (SEC) to launch an ETF (Exchange-Traded Fund) that holds Injective tokens directly. This follows a similar filing by Canary Capital earlier this year, making Injective one of the few alternative cryptocurrencies with multiple ETF proposals. This reflects growing interest from institutional investors in cryptocurrencies beyond just Bitcoin and Ethereum.

Why it matters: If approved, this ETF would allow traditional investors to gain regulated exposure to Injective, likely increasing demand for the token. However, the SEC has historically been cautious about approving ETFs for alternative cryptocurrencies, so approval is not guaranteed. (CoinJournal)

2. Pineapple’s $100M INJ Investment (October 7, 2025)

What happened: Pineapple Financial, a company listed on the New York Stock Exchange (NYSE), has committed $100 million to buy and stake Injective tokens. They started with an $8.9 million purchase. By staking these tokens on the blockchain, Pineapple expects to earn about a 12.75% annual return, integrating Injective into their corporate investment strategy.

Why it matters: This move shows that Injective is gaining traction as a way for institutions to generate income from their crypto holdings. However, the returns depend on how active the Injective network is, and recent price drops suggest some caution. (Cryptotimes)

3. October Token Burn Scheduled (October 22, 2025)

What happened: Injective has announced a token burn event for October. Token burning means permanently removing tokens from circulation, which can help increase scarcity. So far, over 6.6 million INJ tokens (worth about $55 million) have been burned through fee auctions.

Why it matters: Reducing the supply of tokens can support the price, especially when demand is weak. However, the success of this strategy depends on the Injective network generating enough revenue, which has been uncertain due to lower activity in decentralized finance (DeFi).

Summary

Injective is positioning itself for greater institutional adoption through ETF filings and corporate investments, while also managing its token supply with burns. These steps could help the token’s value over time. However, broader market challenges, including cautious investor sentiment and weaker performance among alternative cryptocurrencies, suggest a cautious outlook. The big question remains: Will the SEC become more open to altcoin ETFs as Injective’s real-world uses grow?

What is expected in the development of INJ?

Injective’s roadmap is focused on growing its decentralized finance (DeFi) features and attracting institutional users.

1. EVM Mainnet Launch (Q4 2025) – Completing the Ethernia upgrade to support Ethereum-compatible smart contracts.
2. iBuild AI Platform (2025) – A no-code tool that lets users build decentralized apps (dApps) using simple text commands.
3. Monthly Community Burns (Ongoing) – Pooling fees from dApps to regularly burn $INJ tokens, reducing supply.
4. Pre-IPO Perpetual Markets (October 2025) – Offering synthetic derivatives for private companies like OpenAI before they go public.

Deep Dive

1. EVM Mainnet Launch (Q4 2025)

Overview: The Ethernia upgrade combines Ethereum Virtual Machine (EVM) and WebAssembly (WASM) on Injective. This allows developers familiar with Ethereum’s programming language, Solidity, to build dApps on Injective while accessing liquidity from the Cosmos ecosystem through IBC (Inter-Blockchain Communication). The public testnet is already available, with the full mainnet launch expected by late 2025 (CoinDesk).
What this means: This is positive for $INJ because it can attract Ethereum developers and improve cross-chain compatibility, potentially increasing DeFi activity on Injective. However, there are risks such as possible technical delays or competition from other blockchains that also support EVM.

2. iBuild AI Platform (2025)

Overview: iBuild is a platform that enables users to create Web3 finance applications without coding, using natural language prompts. A live demo at the Injective Summit showed how quickly a prototype dApp can be built (CoinDesk).
What this means: This could be a game-changer by making dApp development accessible to non-programmers, which may help grow the Injective ecosystem. However, its success depends on how easy it is to use and how well it’s supported. Some developers might be skeptical about no-code solutions.

3. Monthly Community Burns (Ongoing)

Overview: Injective shifted from irregular token burns to monthly auctions that pool fees collected from dApps like Helix. Since 2023, over 6.6 million $INJ tokens (worth about $55 million) have been burned, with recent burns averaging nearly 9,000 $INJ per month (Blockworks).
What this means: Regular token burns help reduce the total supply of $INJ, which can support its value over time. The effectiveness of this depends on continued use of dApps and fee generation on the platform.

4. Pre-IPO Perpetual Markets (October 2025)

Overview: Injective plans to launch decentralized perpetual contracts for private companies like OpenAI and SpaceX, using Helix and Seda oracles for price data. This targets a market estimated at $2 trillion but excludes users from the U.S. and U.K. due to regulations (Cointelegraph).
What this means: This expands Injective’s utility by offering new financial products, but regulatory challenges could pose risks. The success of this market depends on attracting enough liquidity and institutional interest.

Conclusion

Injective is pushing forward with innovations in DeFi by integrating Ethereum compatibility, introducing AI-powered development tools, and creating new derivatives markets. Their roadmap balances technical improvements with incentives for the community and connections to traditional finance. While there are risks in execution, these efforts align well with the growing demand for real-world assets and institutional involvement in blockchain finance.

Can Injective’s hybrid infrastructure become the go-to platform for on-chain finance?

What updates are there in the INJ code base?

Injective recently rolled out major updates to its codebase, focusing on Ethereum compatibility, reducing token supply, and improving security.

1. Ethernia Upgrade (August 31, 2025) – Added Ethereum Virtual Machine (EVM) support, making it easy to run Ethereum-based apps on Injective.
2. Community Burn Overhaul (June 30, 2025) – Automated the process of burning INJ tokens to reduce supply faster.
3. Security Audit (June 20, 2025) – Informal Systems reviewed the code to ensure it’s secure and reliable.

Deep Dive

1. Ethernia Upgrade (August 31, 2025)

What happened: Injective combined two blockchain technologies—WASM and EVM—so developers who build apps on Ethereum can now easily launch their apps on Injective without changing their code.

This upgrade also lets Injective connect with other blockchains through Cosmos IBC, making it easier to move assets across networks. Plus, transaction fees dropped to less than one cent, and developers can use popular tools like MetaMask to interact with Injective’s fast network (blocks confirmed every 0.64 seconds).

Why it matters: This opens Injective to Ethereum’s large developer community, expands decentralized finance (DeFi) possibilities, and strengthens Injective as a versatile blockchain platform. (Source)

2. Community Burn Overhaul (June 30, 2025)

What happened: The previous token burn system was replaced with a monthly “Community Burn” that uses smart contracts to automatically collect fees and burn INJ tokens.

There are now limits on how much each participant can contribute, and the process is fully transparent on the blockchain. So far, over 6.6 million INJ tokens (about $31 million) have been burned, with weekly burns averaging nearly 9,000 INJ.

Why it matters: This speeds up the reduction of INJ token supply, which can increase the token’s value over time. It also makes the process fairer and more accessible to the community, encouraging long-term holding. (Source)

3. Security Audit (June 20, 2025)

What happened: Informal Systems performed a thorough security review of Injective’s core code.

The audit confirmed the code is well-written, thoroughly tested, and secure. No major vulnerabilities were found, which means Injective is a safe platform for building financial applications.

Why it matters: While this doesn’t add new features, it reassures users and institutions that Injective is a trustworthy and stable platform. (Source)

Conclusion

Injective’s recent updates—adding Ethereum compatibility, automating token burns, and confirming security—show a clear focus on making the platform more connected, scarce, and reliable. With developer activity leading all Layer 1 blockchains (36,500+ commits), the big question is: can INJ keep growing and competing with other multi-chain platforms?

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