Injective (INJ) rose 5% on Thursday, extending gains from the previous day’s double-digit surge. The momentum follows the highly anticipated launch of its testnet, marking a pivotal upgrade for the Layer-1 blockchain. With growing interest in tokenized stocks and increased activity across its DeFi ecosystem, market sentiment around Injective has turned decisively bullish. Derivatives data further supports this optimism, as open interest hit a 30-day high of $170.8 million.
This rally isn’t just speculative—it's underpinned by meaningful infrastructure development and rising institutional-grade use cases, particularly in asset tokenization.
A Major Network Upgrade Powers DeFi Innovation
Injective officially launched its testnet on Wednesday, a significant milestone that positions it at the forefront of decentralized finance innovation. The upgrade introduces a unified virtual machine (VM) layer, making Injective the only Layer-1 blockchain to support a single execution environment across all applications.
👉 Discover how unified blockchain architecture is reshaping DeFi development
Traditionally, developers must navigate multiple virtual machines when building decentralized applications (dApps), creating fragmentation and liquidity silos. Each dApp may use different token standards, complicating cross-application interoperability. Injective’s new architecture solves this with the Multi-Token Standard (MTS), enabling seamless token usage and liquidity sharing across dApps.
This unified framework reduces technical overhead, accelerates development cycles, and enhances user experience—key drivers for broader adoption. As more builders migrate to Injective’s streamlined environment, we can expect a surge in dApp deployment and on-chain activity.
The timing of this upgrade aligns with a broader market trend: the rise of tokenized real-world assets (RWA). Platforms like Robinhood, Kraken, and Gemini have recently entered the tokenized stock space, fueling demand for blockchain solutions capable of handling regulated financial instruments. Injective is already a leader in this niche, having processed nearly $1 billion in tokenized stock trading volume—a strong signal of trust from traders and institutions alike.
Market Sentiment Turns Bullish: Open Interest Hits 30-Day High
Market indicators confirm growing confidence in INJ’s price trajectory. According to CoinGlass, open interest (OI) in Injective derivatives reached **$170.8 million** on Thursday—up from $146.9 million the previous day—the highest level in 30 days.
Rising open interest alongside price appreciation typically signals new capital entering the market, often through leveraged long positions. This suggests traders aren’t just holding INJ; they’re actively betting on further upside.
Equally telling is the shift in funding rates. The open interest-weighted funding rate flipped from -0.0054% on Wednesday to +0.0103% on Thursday, moving into positive territory for the first time in weeks. A positive funding rate means long-position holders are paying short-position holders to maintain their bets—indicating strong buying pressure and bullish sentiment.
This dynamic often precedes sustained upward moves, especially when combined with other technical signals.
Technical Outlook: Key Levels Point to Further Upside
From a technical perspective, Injective is showing classic signs of a trend reversal. As of writing, INJ is trading near the 100-day EMA at $11.91, having climbed nearly 6% on the day following Wednesday’s 11.5% gain.
A daily close above the 100-day EMA could act as a catalyst for further gains, potentially pushing the price toward the 200-day EMA at $13.88**. Should momentum continue, the next target lies at **$14.95—the 50% Fibonacci retracement level between the December 6 high ($35.26) and April 7 low ($6.34).
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The daily chart reinforces this bullish setup:
- The Relative Strength Index (RSI) has moved above 50—currently at 54—signaling that momentum has shifted into neutral-positive territory.
- The MACD indicator shows the MACD line rebounding above its signal line, with the histogram bars rising from zero. This pattern typically precedes accelerating bullish momentum.
- Volume has remained supportive during the rally, indicating strong participation.
Potential Support Levels on Pullbacks
While the short-term outlook is positive, traders should remain aware of key support zones:
- A retest of the $9.51 level, which corresponds to the 23.6% Fibonacci retracement, could offer a strategic entry point if profit-taking occurs.
- Stronger downside risks emerge only if price closes below $9.00, which would invalidate the current bullish structure.
Until then, the path of least resistance appears upward.
Why Tokenized Stocks Are Fueling Injective’s Growth
Tokenized stocks—digital representations of traditional equities traded on blockchain platforms—are gaining traction as they offer 24/7 trading access, lower fees, and global settlement efficiency. Injective has become a preferred infrastructure layer for these assets due to its speed, low cost, and regulatory-compliant design.
With nearly $1 billion in cumulative trading volume for tokenized stocks, Injective demonstrates both product-market fit and scalability. Its integration with custodians and compliance tools allows it to meet institutional standards—an edge over many competing DeFi protocols.
As more exchanges roll out tokenized versions of Apple, Tesla, or Nvidia shares, demand for robust underlying networks like Injective will likely grow proportionally.
👉 Learn how next-gen blockchains are powering the future of asset tokenization
Frequently Asked Questions (FAQ)
Q: What is Injective’s testnet launch?
A: The testnet launch introduces a unified virtual machine layer on Injective’s Layer-1 blockchain, allowing developers to build interoperable dApps using a single execution environment. It's a critical step before full mainnet deployment.
Q: Why did INJ price go up recently?
A: The price surge was driven by positive market reaction to the testnet launch, rising open interest in derivatives, improved funding rates, and growing demand for tokenized stock platforms.
Q: What are tokenized stocks?
A: Tokenized stocks are blockchain-based tokens that represent ownership of real shares in public companies. They enable crypto traders to gain exposure to traditional equities without using conventional brokers.
Q: Is Injective focused only on DeFi?
A: While rooted in DeFi, Injective has expanded into broader financial applications, including derivatives, spot trading, and real-world asset tokenization such as stocks and commodities.
Q: What does rising open interest mean for INJ?
A: Increasing open interest during a price rally suggests new money is entering the market via leveraged positions, often signaling strong conviction in further upside.
Q: What are the key resistance levels for INJ?
A: Key resistance levels include $13.88 (200-day EMA) and $14.95 (50% Fibonacci retracement). A breakout above these could lead to stronger upward momentum.
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