Injective Protocol, a DeFi-focused platform powered by Cosmos technology, is gaining traction with gas fee revenues distributed to its validators in the third quarter of 2024.
While INJ, the protocol’s native currency, has been under pressure, cooling after rising to $52 earlier this year, the recent development is a huge confidence boost. Trend analysis could signal that more users are switching to Injective, which is a net positive for INJ in the upcoming sessions.
Injective generates more revenue than the BNB network, Avalanche
According to CryptoRank dataInjective Protocol earned $4 million in revenue from gas fees. Each transfer or deployment of a smart contract incurs a gas fee, just like any other public ledger such as Bitcoin or Solana. This fee is distributed to the winning validator or miner as an incentive to run the node.
With $4 million in revenue, Injective has created more than BNB Chain, one of the largest blockchains by market cap, and Avalanche, a top 20 network, according to CoinMarketCap. These platforms earned $3.4 million and $2.1 million, respectively.
At this level, Injective also surpassed what some of the best Ethereum second layer solutions such as Arbitrum, Optimism and Blast generated during this period. By comparison, despite being the largest and managing more than $13.2 billion, according to Arbitrum. L2Beat.
Ethereum, Tron, Solana and Base generated more revenue than Injective. From July to September, Ethereum transferred $159 million to its validators, and Tron and Solana collectively transferred more than $200 million.
The increase in revenue, mainly from Tron, a scalable platform, is due to meme coin activity on its network following the launch of SunPump in August. At the same time, Solana also benefited from meme coins and decentralized exchange (DEX) volume growth during this period.
Will INJ rise to $50?
It remains to be seen whether DeFi activity will rebound while Injective and its Total Value (TVL) increase. As of October 8, the protocol manages more than $40 million. DeFiLlama Data. At the same time, the platform processed more than 1 billion on-chain transactions.
In early October, Injective announced the launch of Injective 3.0. This update allows the protocol to change its tokenomics and make INJ deflationary. With this activation, some INJ will be removed from circulation, making it more scarce.
Currently, INJ is inside a descending channel, finding support at $15. While Q1 2024 buyers are still present, the token is down 60% from its March highs. A break above this descending channel could see the coin soar to its 2024 high of around $52.
