Injective Protocol Gains Traction, Generates More Revenue Than BNB Chain, Avalanche

Injective Protocol, a DeFi-centric platform using Cosmos tech, is gaining traction, looking at the gas fee revenue distributed to its validators in Q3 2024.

Injective Protocol, a decentralized finance (DeFi)-centric platform built using Cosmos technology, is quietly gaining traction. A recent analysis of gas fee revenue distributed to validators on the Injective chain in Q3 2024 reveals some interesting insights.

While INJ, the native currency of the Injective Protocol, is facing selling pressure, cooling off from the highs of around $52 seen earlier this year, recent developments could boost confidence. Observing the trends may indicate an influx of users to Injective, which could be a net positive for INJ in the upcoming trading sessions.

Injective Generates More Revenue Than BNB Chain, Avalanche

According to data from CryptoRank, the Injective Protocol generated around $4 million in revenue from gas fees. Every transaction or smart contract deployment on a public ledger, such as Bitcoin, Solana, or Injective, incurs a gas fee. This fee is then distributed to the winning validator or miner as an incentive for operating a node on the network.

At $4 million in revenue, Injective created more than both the BNB Chain, one of the largest blockchains by market capitalization, and Avalanche, a network ranked in the top 20 on CoinMarketCap. These platforms generated $3.4 million and $2.1 million, respectively.

Injective also Surpassed Top Ethereum Layer-2 Solutions

At this level, Injective also surpassed what some of the top Ethereum layer-2 solutions, such as Arbitrum, Optimism, and Blast, generated over this period. For comparison, Arbitrum, despite being the largest and managing over $13.2 billion, generated less revenue.

However, platforms like Ethereum, Tron, Solana, and Base churned out more revenue than Injective. At the same time, Injective generated more revenue than Near, Celo, and Polygon.

Ethereum funneled $159 million to its validators from July through September, while Tron and Solana both moved over $200 million in total. The expansion of revenue, mostly from Tron, a scalable platform, is due to the meme coin activity on its network following the launch of SunPump in August.

Solana also benefited from meme coins and an uptick in decentralized exchange (DEX) volume over this period.

Will INJ Rise To $50?

It remains to be seen whether the recovery of DeFi activities will boost Injective and its total value locked (TVL). As of October 8, the protocol manages over $40 million, according to DeFiLlama. At the same time, the platform has processed over 1 billion onchain transactions.

In early October, Injective announced the launch of Injective 3.0. This upgrade will allow the protocol to change its tokenomics and make INJ deflationary. With this activation, a portion of INJ will be removed from circulation, making it more scarce.

Presently, INJ is trading within a descending channel, finding support at $15. While buyers of Q1 2024 are still in the picture, the token is down 60% from March highs. A break above this descending channel could see INJ soar to 2024 highs of around $52.

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