Injective, the first layer of the VC-funded blockchain, continued its upward trend as community members voted in favor of the new Injective 3.0 upgrade.

injection (Eng) for six consecutive days, reaching an intraday high of $26, its highest level since December 18. The token has risen 40% from its lowest point this year.

This rise was primarily driven by the recent community vote to move from Injective 2.0 to Injective 3.0, which will introduce new contraction features.

https://twitter.com/injective/status/1875946586221715805

The upgrade will adjust the token supply based on the accumulated INJ, allowing real-time adaptation to staking activity. This change is expected to boost the rate of deflation by 400%, making Injective more resilient to inflationary pressures.

A shift to a more deflationary model will likely increase staking rewards for INJ holders. according to StakeRewardsInjective currently offers a yield of 10.68% with a stake ratio of 56%, making it one of the highest yielding cryptocurrencies. In comparison, Ethereum (ETH) offers a 3.13% yield, while Solana (ETH) offers a 3.13% yield.Sol) and straight (but) yields 7.06% and 2.81%, respectively.

The price of the injection also rebounded as the overall value was locked in Decentralized finance The network rose even more $55.95 millionThis is its highest level since June of last year. Most of this growth is driven by major decentralized applications such as Hydro, Helix, Neptune Finance, and DojoSwap. The market cap of the stablecoin is only $30 million.

However, Injective, which counts billionaire investor Mark Cuban among its backers, has struggled to attract developers to its ecosystem. In contrast, newer Layer 1 and Layer 2 networks such as Sui, Aptos, and Base have attracted billions of dollars into their ecosystems.

Injection price analysis

The 4-hour chart shows that INJ has made a strong recovery in recent days. This rebound began after the token bottomed at $18.42 on December 16. It has since moved above key neckline resistance at $23.80 and crossed the Woodie pivot point at the same level.

The percentage price oscillator has moved above the zero line, indicating positive momentum. As a result, INJ is likely to continue higher, with buyers targeting the first resistance level of the Woodie pivot point at $29. This level is closely aligned with the 61.8% Fibonacci retracement point at $28.87.

However, a drop below the pivot point at $23.80 would invalidate the bullish outlook and indicate the potential for further decline.