Injective gains 10% as leverage hits $164M – Can rising INJ bets sustain rally?

Injective [INJ] gained 10% in the early hours of the 10th of October as bullish trading activity picked up.

Perpetual buying pressure and spot exchange outflows supported the outlook, with traders showing renewed interest in the asset.

Alongside those moves, Injective’s updated white paper and ongoing exchange-traded fund (ETF) applications offered potential catalysts.

Are INJ buyers taking the lead?

Across exchanges, INJ’s Taker Buy/Sell Ratio reached 1.14 over the preceding four hours. A reading above 1 indicates that taker buying volume exceeded taker selling volume, pointing to stronger aggressive buying.

However, the ratio measures executed trading volume rather than the number of outstanding long and short positions.

The exchange breakdown showed buying accounted for more than half of recorded volume on several major venues. These included Binance, Bybit, Gate, BingX, Bitunix, and Hyperliquid.

That supported the bullish reading across multiple platforms. The next question is how much exposure traders added alongside those purchases.

Is INJ’s rising exposure supporting the rally?

INJ’s OI-Weighted Funding Rate stood at a positive 0.0160%, indicating that longs were paying shorts. That reading supported a bullish positioning bias, without establishing that long positions outnumbered shorts.

Meanwhile, Open Interest increased by $34.88 million to $164.24 million over 24 hours, showing a larger pool of outstanding contracts.

Spot exchange flows offered another supportive signal. Cumulative Spot Netflow reached approximately -$1.6 million over five days. At press time on the 11th of October, Spot Netflow stood at -$311,000, the largest net outflow since the 9th.

Negative Netflows meant more INJ left exchanges than entered them. Those withdrawals could suggest holders were moving tokens into custody, potentially reducing readily available exchange supply.

Still, exchange withdrawals alone cannot confirm fresh purchases. Together, the readings supported the bullish outlook while leaving buyers’ intentions partly open.

Can Injective’s developments sustain investor interest?

Beyond trading activity, Injective published an updated white paper outlining its finance-focused development plans. Its regulatory work included publication of an INJ white paper under Europe’s Markets in Crypto-Assets Regulation (MiCA).

That process was separate from U.S. Securities and Exchange Commission (SEC) oversight, rather than a regulatory channel between the two.

Meanwhile, 21Shares and Canary pursued INJ ETF applications, offering another potential source of investor interest.

Injective CEO Eric Chen had suggested a launch could come before 2027, although that remained his expectation. Overall, these developments could help sustain interest. Further upside would still depend on demand holding beyond the initial rally.

Final Summary

• INJ gained 10%, while stronger taker buying, positive Funding Rates, and rising Open Interest supported bullish positioning.
• Exchange outflows and ongoing ETF applications added support, although withdrawals alone did not confirm fresh buying.