Challenging Injective Protocol's Appeal: Is INJ Overpriced, Asks DeFi Researcher?

Is Injective Protocol Undervalued Based On On-Chain Metrics?

A decentralized finance (DeFi) researcher named Thor Hartvigsen is questioning the appeal of Injective Protocol, a layer-1 platform designed for finance. Despite being one of the top-performing coins as of December 2023, Hartvigsen points out that Injective Protocol has a relatively low total value locked (TVL) of $11 million and only seven launched protocols on the platform. The largest protocol, Helix Protocol, has a daily trading volume of about $7.4 million, which is significantly lower than its competitors. Hartvigsen compares Injective with other blockchains like Ethereum and Solana, noting their higher trading volumes and on-chain activity.

INJ Up 395%, Will Prices Continue Rising On Investor Optimism?

Yiggit, a user claiming to be a legal counsel, defended Injective Protocol against Hartvigsen’s analysis. The user argues that TVL alone cannot determine a project’s potential and highlights the expected number of upcoming apps on Injective Protocol. Yiggit also mentions the optimism surrounding the project’s origins in Cosmos, where staking encourages participation. The assessment of Injective Protocol’s value depends on time, but currently, INJ has been charting higher and reaching new all-time highs. It has gained 395% since mid-October 2023 and has a market cap of over $2.7 billion.

Hot Take: Should You Invest in Injective Protocol?

While there are differing opinions on the value and potential of Injective Protocol, it’s important to consider various factors before making an investment decision. Assessing metrics like total value locked and trading volume can provide insights into a project’s popularity and adoption. Additionally, comparing Injective with other blockchains can help gauge its competitiveness in the market. However, market conditions and investor sentiment also play a significant role in determining the future price movements of INJ. Conduct thorough research and consult with financial advisors before making any investment decisions.