Injective Protocol's Value Questioned Amidst Rising Popularity

DeFi Expert Scrutinizes INJ's Market Position

Thor Hartvigsen, a DeFi researcher, casts doubt over Injective Protocol's market valuation. Injective, a layer-1 platform, boasts a high-performing native currency, INJ. It outshines Bitcoin and Ethereum in December 2023.

Hartvigsen, examining Injective on December 14, notes its modest $11 million TVL. The platform hosts just seven protocols. Helix Protocol, a decentralized exchange, is its biggest dapp, with a $7.4 million daily trading volume. This is lower than rivals like Perpetual Protocol, valued up to $300 million.

Injective's seven active protocols, with Helix commanding over 60% of TVL, pose questions about its $3.2 billion valuation. Compared to Ethereum and Solana, Injective falls short in trading volume and on-chain activity. Data from DefiLlama shows Injective's daily volume hovers between $5 and $7 million, significantly less than Solana's $500-700 million or Ethereum's $1 billion.

Despite Hartvigsen's concerns, INJ has surged 395% since mid-October 2023. Its market cap, per CoinMarketCap, exceeds $2.7 billion. Legal counsel yiggit defends Injective, arguing that TVL isn't the only success metric.

They highlight the protocol's integration with Cosmos and potential app launches as key growth drivers.Final Commentary: While INJ's market performance is notable, the disconnect between its valuation and on-chain metrics raises concerns about its long-term sustainability and market position.