3 Reasons Why Injective (INJ) Can Rally Despite Bitcoin Sliding

Injective protocol is a DeFi platform offering low fees and high scalability. Will INJ price rally in 2025? Could INJ crypto even reach $100?

Bitcoin, Ethereum, Solana, and decentralized finance (DeFi) tokens like Injective have not been spared by sellers. At the time of writing, not only is the total market cap bleeding, but there is also a real risk of BTC and ETH crashing below crucial support levels.

There are critical support zones to be watched closely at $90,000 and $3,200, for Bitcoin and Ethereum, respectively. Meanwhile, altcoin traders are closely monitoring INJ Price Volume in 24h Price 7d .

INJ is the token that powers the DeFi-focused platform, Injective Protocol. Over the last two years, INJ has been swinging higher, surging in 2024. At spot rates, not only did INJ outperform Solana and even Tron, but continued to carve market share, and rapidly grew the total value locked (TVL), looking at DeFiLlama.

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Even as crypto prices remain shaky, optimism is high, with supporters believing the token can easily fly to fresh levels. Will this happen?

Analysts believe INJ can spearhead the recovery for what’s emerging, surging back to December highs.

Behind their bullish stance are several compelling reasons:

Grayscale’s Endorsement of INJ Could Trigger Mega Boost

Partly because of its stellar performance in the past 24 months, Grayscale, one of the largest digital asset managers, recently included INJ in its long list of potential investment products.

This clearly indicates that despite everything, INJ is attracting institutional interest.

One of the largest institutional asset managers, Grayscale, with over $50 billion in AUM, has just added $INJ to its list of assets under consideration this week.

Grayscale is known for adding only the most in-demand crypto assets to its platform. If added, INJ would be…

— Mirza.inj 🥷 (@mirza_inj) January 11, 2025

If INJ is eventually approved and a trust is formed around the token, institutions can gain exposure by purchasing INJ-backed shares.

Learning from Ethereum and Bitcoin, the trust could, in the long run, be converted to an exchange-traded fund (ETF).

For now, supporters should cross their fingers tightly since the selection process is complex and could take weeks to conclude.

Injective 3.0 Upgrade Approved: Could It Move INJ Price?

The Grayscale endorsement is also when the platform plans to transition.

Last week, the community voted, approving the transition from 2.0 to 3.0 era.

The governance proposal to begin the next phase of $INJ 3.0 has passed with 99.99% of community members voting YES.

The new chapter of INJ 3.0 is live now to dramatically reduce the token supply, enabling INJ to become one of the most deflationary assets over time. pic.twitter.com/YJNCQsIiD7

— Injective 🥷 (@injective) January 5, 2025

It is an upgrade that will implement important tokenomics changes that benefit token holders and value accrual.

For example, Injective has enabled real-time adaptation of token supply based on staking activity. This change alone enhances staking rewards for INJ holders while making the token more deflationary.

This is an interesting change because even before this transition, Injective offered a staking yield of 10.66%, which is much higher than what SOL and ETH stakers receive.

The high speed, low transaction fees, and a secure, vibrant ecosystem could explain why Injective’s TVL has been rising. Interest in protocols like Hydro and Helix explains the spike in assets under management.

Is INJ Crypto Undervalued in the Ongoing Crypto Crash?

Considering its role in DeFi, rising global interest in crypto, and Injective’s growth, one trader is convinced INJ is undervalued.

In a post on X, he said INJ can soar 10X to $100 in 2025. Because of this possibility, he believes this could be the best time to accumulate.

From the charts, the analyst is convinced that if INJ reclaims $25 and January highs, prices will likely rip higher. The next targets will be December highs and Q1 2024 peaks before prices double to $100.

EXPLORE: Solana Surpasses Ethereum as Top Ecosystem for New Developers in 2024

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