Injective (INJ), a Layer 1 blockchain project designed for DeFi applications, has recently delivered notable price action. The token surged more than 12% while most altcoins remained deep in the red.
What factors are driving this recovery? Can they sustain INJ’s upward momentum this month?
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IIP-619 Approval and DAT Accumulation Trigger a 12% Surge
News surrounding IIP-619 fueled today’s price rally.
IIP-619 represents a major governance proposal on the Injective network. It aims to upgrade Injective’s real-time EVM architecture significantly. The proposal also strengthens support for next-generation payments and expands the MultiVM ecosystem.
The proposal seeks to:
- Enhance MultiVM architecture performance by significantly improving speed and processing capacity across multiple virtual machines, including Injective’s native EVM.
- Deepen integration with Chainlink oracles to optimize real-time price feeds for real-world assets (RWA). This improvement ensures faster and more accurate pricing data, which remains critical for derivatives trading and RWA markets.
A total of 99.99% of staked participants voted in favor of IIP-619. Following Injective’s official announcement, INJ jumped more than 12%, rising from $3 to $3.40. At one point, the price peaked at $3.95.
Injective (INJ) Price Performance. Source: TradingViewSponsored
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Positive developments have drawn investor attention back to INJ after months of continuous decline.
Another factor driving renewed interest is Pineapple Financial‘s accumulation activity. The company recently launched a new dashboard revealing that it has accumulated more than 7 million INJ tokens, equivalent to 7% of Injective’s total supply.
The chart shows that Pineapple Financial increased its holdings throughout February.
Pineapple Financial’s INJ Holdings. Source: PineappleDigitalAssetsIn addition, Artemis data shows that daily transaction fees on Injective remain around 14,000 INJ. The network has maintained a steady upward trend in fee generation over the past several years.
This growth signals genuine on-chain activity. Users continue to stake, trade, and build applications on the network.
Injective Fee Per Day. Source: Artemis Dashboard.However, these positive signals may not be strong enough to overcome the broader negative sentiment surrounding altcoins. INJ still trades more than 90% below its all-time high. The recovery path will likely require significant new capital inflows from new investors.
Source: https://beincrypto.com/dat-accumulates-7-of-injective-inj-supply/
