Injective (INJ), a Layer 1 blockchain project designed for DeFi applications, has recently delivered notable price action. The token surged more than 12% while most altcoins remained deep in the red.
What factors are driving this recovery? Can they sustain INJ’s upward momentum this month?
IIP-619 Approval and DAT Accumulation Trigger a 12% Surge
News surrounding IIP-619 fueled today’s price rally.
IIP-619 represents a major governance proposal on the Injective network. It aims to upgrade Injective’s real-time EVM architecture significantly. The proposal also strengthens support for next-generation payments and expands the MultiVM ecosystem.
The proposal seeks to:
- Enhance MultiVM architecture performance by significantly improving speed and processing capacity across multiple virtual machines, including Injective’s native EVM.
- Deepen integration with Chainlink oracles to optimize real-time price feeds for real-world assets (RWA). This improvement ensures faster and more accurate pricing data, which remains critical for derivatives trading and RWA markets.
A total of 99.99% of staked participants voted in favor of IIP-619. Following Injective’s official announcement, INJ jumped more than 12%, rising from $3 to $3.40. At one point, the price peaked at $3.95.
Positive developments have drawn investor attention back to INJ after months of continuous decline.
Another factor driving renewed interest is Pineapple Financial‘s accumulation activity. The company recently launched a new dashboard revealing that it has accumulated more than 7 million INJ tokens, equivalent to 7% of Injective’s total supply.
The chart shows that Pineapple Financial increased its holdings throughout February.
In addition, Artemis data shows that daily transaction fees on Injective remain around 14,000 INJ. The network has maintained a steady upward trend in fee generation over the past several years.
This growth signals genuine on-chain activity. Users continue to stake, trade, and build applications on the network.
“Compare that to 2022 levels, the difference is night and day. When fees keep rising over time, it shows that activity is real. Users are staking, building, and trading. They are not just holding the token and waiting. That is what truly matters in the long run.” Everstake, a staking service provider, commented.
However, these positive signals may not be strong enough to overcome the broader negative sentiment surrounding altcoins. INJ still trades more than 90% below its all-time high. The recovery path will likely require significant new capital inflows from new investors.