Injective Ecosystem Development Update: Surge in Capital Inflow, Can It Achieve Long-term Breakthrough?

Recently, the Injective public chain has attracted market attention. Data shows that in the past 30 days, the net inflow of funds into this chain was approximately $142 million, ranking second among all public chains, only behind Ethereum. Behind this phenomenon, Injective has shown a significant growth trend in terms of on-chain fees, active users, and token trading volume.

In-depth analysis reveals that the net inflow of funds into Injective mainly comes from large-scale capital inflows, while outflows are relatively small. Among them, 98.5% of the funds enter the network through the Peggy cross-chain bridge. Market analysis suggests that this wave of capital inflow is largely attributed to the launch of the high-yield platform Upshift on Injective, which has a treasury APY of up to 30%, making it quite attractive to investors.

However, Upshift has a vault limit of $5 million on Injective, which cannot fully absorb these inflowing funds. Therefore, the funds that fail to participate in the vault investment may face short-term loss risks.

In addition to capital inflow, the Injective ecosystem has also experienced significant changes recently. The launch of the Lyora mainnet on April 22 marks an important milestone in the development of Injective. This upgrade introduces technical optimizations such as dynamic fee structures and smart mempool, which are said to provide faster transaction speeds and higher throughput.

In addition, Injective has launched the oracle framework iAssets for physical assets (RWA), and based on this framework, it has introduced on-chain foreign exchange markets for euros and pounds. This indicates that Injective is making efforts towards RWA.

As a public chain that once focused on decentralized derivatives trading, Injective seems to have failed to achieve its expected goals in this field. Data shows that its daily trading volume for derivatives is about $90 million, which is far lower than its competitors. This may be one of the reasons Injective is shifting towards the RWA field.

This transformation strategy has begun to show results. On May 22, the trading volume of Injective derivatives reached a peak of $1.97 billion, showing an overall upward trend recently. The daily active user count surged from 6,300 in February to 47,900, an increase of about 7.6 times. However, the total locked value (TVL) remains at a low of $26.33 million, indicating that the appeal of DeFi projects on Injective for funds still needs to be enhanced.

In terms of token performance, INJ currently has a market value of approximately $1.26 billion, down 76% from its historical peak. However, it has rebounded 144% since the low in April, demonstrating impressive performance among established public chains.

Injective has recently attracted well-known institutions such as Republic, Google Cloud, and Deutsche Telekom MMS to join the ranks of validators, and has launched AI-related products. Overall, Injective is actively seizing new narratives such as AI and RWA for transformation, and has indeed achieved some growth in recent months.

However, compared to mainstream public chains, Injective still has a significant gap. As a follower, Injective faces considerable challenges. The current ecological transformation and revitalization path is still in its early stages, and the capital inflow triggered by Upshift is more like a test of market sentiment rather than a fundamental shift in the landscape.

Whether Injective's strategic transformation to the RWA field can truly establish a differentiated competitive advantage and bring about sustainable ecological prosperity still requires overcoming numerous challenges and enduring long-term market testing. Whether the short-term data rebound indicates a long-term recovery or is merely a fleeting phenomenon remains to be seen. For Injective, the real test has only just begun.