Injective’s social dominance surges to a four-week high. Decoding why…
- A look at why Injective is currently attracting attention courtesy of this upcoming launch.
- INJ rallies but the bears may have the last laugh as the weekend rolls in.
The Injective blockchain just experienced a burst of social dominance in the last 24 hours. It happens to be the highest social dominance surge in the last 30 days and the reason for the spike is quite interesting.
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Injective’s native cryptocurrency INJ was among the best-performing coins so far in 2023. Social Dominance is an interesting metric because it lets us see which projects and protocols are receiving attention and visibility. In this case, it was safe to say that Injective, at press time, was enjoying the spotlight as its Social Dominance bounced to a new monthly high.
What’s the driving force for Injective’s social dominance spike?
We explored the potential reasons for the excitement regarding the Injective protocol. The overarching reason for this observation was the launch of the Helix DEX. The latter will roll out on the Injective blockchain and will reportedly offer pre-launch futures for popular token markets prior to the official rollout.
This marks a significant milestone, providing all traders with equal opportunity to access popular token markets before their official launch!
— Helix ? (@HelixApp_) October 18, 2023
It can be argued that the futures were the main reason for the excitement. This was because they are derivatives types of investment avenues that offer easy entry and exit into a particular type of asset.
The demand for futures in the crypto environment has been rising and thus the buzz about the upcoming launch. We could see a strong uptick in the Helix DEX based on the above argument. Hence, the new-found excitement that manifested as Injective’s Social Dominance spike.
Assessing the impact on INJ
Injective’s native coin INJ has been rallying in the last seven days, by over 11% to its $8.15 press time price level. The cryptocurrency was up by over 3% in the last 48 hours, reflecting strong demand revolving around the Helix DEX.
INJ’s positive price action reflected an injection of liquidity so far this week as indicated by the Money Flow Index (MFI). In other words, the demand for cryptocurrency has gone up considerably in the last five days.
INJ received roughly $4 million worth of liquidity during the same period. An indication that attention was being converted into demand.
Read about Injective’s price prediction for 2024
INJ also experienced a substantial surge in on-chain volume, reflecting the market cap surge. It has some more wiggle room for growth before being oversold. However, traders should note that the current rally is in defiance of its recent death cross. In addition, INJ just retested a short-term resistance range.