Injective's INJ Soars with 3,000% Year-to-Date Gain After Recent Surge

• Record High for Injective's Native Token
• Injective: A Fusion of AI and DeFi
• Role of AI Algorithms in DeFi
• The AI Narrative and Value Capture
• Trend of Airdrop Farming

Record High for Injective's Native Token

The native token of Injective$35.9 1.60%'s layer 1 blockchain, known as Injective (INJ), soared to a new record high of $39.15 on Tuesday. This significant increase marks a 3,000% uptick in value over the course of 2023. In the last 24 hours alone, the token has surged by 28% as traders anticipate a wider altcoin rally on the back of recent growth spurred by Solana$104 5.03%.

Injective: A Fusion of AI and DeFi

Injective is a blockchain based on the Cosmos network, blending aspects of artificial intelligence (AI) and decentralized finance (DeFi). As per DeFiLlama, the total value locked in Injective currently stands at just $18 million. However, the token has seen a whopping $600 million in trading volume in the past 24 hours.

Role of AI Algorithms in DeFi

Decentralized applications (dApps) built on Injective can employ AI algorithms to heighten market efficiency and refine decision-making for users. For instance, these algorithms can optimize trades on decentralized exchanges. Injective touts itself as the first blockchain to provide auto-executing smart contracts, an innovation designed to boost efficiency.

The AI Narrative and Value Capture

The limited value capture on the Injective blockchain juxtaposed with the spike in token prices implies that traders are buying into the artificial intelligence narrative. This trend has been a key driver for other assets like fetch.ai (FET) and the graph (GRT) in recent months.

Trend of Airdrop Farming

The rise can also be ascribed to a growing trend of airdrop farmers. These are individuals who switch between blockchains with the aim of collecting newly issued token airdrops. It has been noted that a number of projects built on top of Injective have confirmed an airdrop, which further fuels this trend.

Edited by Jonathan Stoker