Injective [INJ] Surges 8.53% in 24 Hours, TVL Rises 16.75% Despite No Profit

Injective [INJ] has seen a significant surge in its market performance, with an 8.53% increase in the past 24 hours, pushing its monthly gain to 24%. This bullish trend has positioned INJ as one of the top gainers in the market. Despite this positive momentum, the protocol has not generated any profit so far, which raises questions about its sustainability.

User activity on Injective has surged significantly in recent days. The number of returning users has climbed from a low of 28,000 to 46,800, indicating a nearly 20,000 user increase. Monthly active users have also remained relatively stable since May 29, with 90,000 users actively using Injective to facilitate transactions. This indicates healthy engagement with the chain, showing that users are interacting and utilizing INJ for real transactions.

Despite the growth in user activity, Injective’s on-chain profit has dropped significantly. At the time of writing, data showed that on-chain profit has declined to $0. Typically, when on-chain profit remains at $0, it signals high spending by the team, which can shake investor confidence. However, investors are responding differently. This group has started adding liquidity to Injective, as reflected in the rising Total Value Locked (TVL). TVL measures a chain’s valuation based on the amount locked in its protocols. A growing TVL suggests increasing liquidity inflow, as investors deposit more funds. Currently, INJ’s TVL has risen to $28.59 million, a 16.75% increase in the past 24 hours. This indicates sustained investor interest despite the lack of profit.

Market analysis indicates strong investor interest in INJ. However, despite this interest, the chain is not currently generating profit. Could this affect INJ’s chances of sustaining its rally? Chart analysis reveals a strong possibility of a price surge, as several indicators align in its favor. INJ has broken through a major resistance line in the bullish pattern on the chart, showing a clear path toward a potential 20% gain. Technical indicators are also supporting this rally. The Bull-Bear Indicator and Parabolic Stop and Reverse (SAR) both point in favor of continued upward momentum. The Parabolic SAR, which signals a rally when dots appear below the price, currently shows dots forming beneath INJ’s price, suggesting a bullish trend. Similarly, the Bull-Bear Power indicator, which uses histogram bars to reflect whether bulls or bears dominate, echoes the same sentiment. At the time of writing, a green histogram appeared for the sixth consecutive day, with today’s bar being the largest of all six. If these bullish indicators persist, INJ’s rally potential remains strong. However, if investor sentiment shifts, especially regarding the protocol’s lack of profit generation, then INJ could face a significant pullback.