Injective Ecosystem Data Surge: Short-term Fluctuation or Long-term Trend?

Recently, the Injective public chain has attracted renewed market attention. Data shows that in the past 30 days, the net inflow of funds into this chain was approximately $142 million, second only to Ethereum among all public chains.

Apart from the influx of funds, Injective has also seen significant improvements in on-chain fees, active users, and token trading volume. Does this mean that this once-promising public chain will rise again, or is it just a temporary data Fluctuation?

Analysis of the Reasons Behind Capital Inflow

As of June 4, Injective has achieved a net inflow of $142 million in the past month. Specifically, the chain has seen a wave of rapid large capital inflow, while the net outflow of funds is only $11 million. It is worth noting that 98.5% of the inflow funds ( amounting to approximately $140 million ) were completed through the peggy cross-chain bridge.

Market analysis agencies believe that the large-scale capital inflow is mainly due to the high-yield platform Upshift launching on Injective. The annualized yield of Upshift's treasury on this chain reaches 30%, which may be the primary reason for attracting capital inflow.

However, Upshift's vault limit on Injective is $5 million, which cannot fully accommodate this portion of funds. Therefore, some funds that fail to participate in the vault investment may flow out again in the short term.

New Trends in Injective Ecosystem

In April, Injective completed the Lyora mainnet upgrade, introducing dynamic fee structures and smart memory pool technology optimizations, enhancing network performance.

In addition, the chain launched the oracle framework iAssets for physical assets (RWA). At the end of May, Injective announced the launch of a Euro and Pound on-chain foreign exchange market using the iAsset framework, demonstrating its new narrative closely related to RWA.

As an established public chain, Injective originally focused on decentralized derivatives trading. However, its derivatives trading volume still lags significantly behind emerging platforms. Perhaps it is precisely because it is difficult to make breakthroughs in the field of crypto derivatives that Injective has chosen to pivot towards the RWA direction.

This transformation seems to be showing initial results. On May 22, the trading volume of Injective derivatives reached a peak of $1.97 billion, showing an overall upward trend recently. Daily active users surged from 6,300 in February to 47,900, an increase of approximately 7.6 times.

However, the total locked value of Injective ( TVL ) is still declining, currently only at 26.33 million USD. This indicates that the appeal of DeFi projects on this chain for funds still needs improvement.

Token Performance and Future Outlook

The governance token INJ of Injective currently has a market value of approximately $1.26 billion, down 76% from its historical high of $5.3 billion. However, it has rebounded from the low of $6.34 in April to a high of $15.48, achieving an increase of 144%, performing quite well among established public chains.

In addition, Injective has recently attracted several well-known institutions to join the ranks of validators and has launched AI-related products. Overall, Injective is actively seizing new narratives such as AI and RWA for transformation, and recent data has indeed shown growth. However, there is still a noticeable gap compared to mainstream public chains.

The ecological transformation and revitalization path of Injective is still in its infancy. The capital inflow triggered by Upshift seems more like a test of market sentiment rather than a fundamental shift in the landscape. Whether its strategic transformation towards RWA can truly create differentiated advantages and bring about sustained ecological prosperity still requires time to verify.

Whether the short-term data rebound indicates a long-term recovery or is merely a fleeting moment is currently difficult to conclude. For Injective, the real challenge has only just begun.