Markets
Injective, Underperforming in Crypto Markets, Now Plans Layer 3 Chain in Arbitrage
Injective, a Cosmos-based blockchain whose INJ token price has soared a whopping 33 times in 2023which only dropped this year, is now planning a significant expansion – launching its own layer 3 network on the Ethereum ecosystem, based on technology from the layer 2 project Arbitrum.
Injective’s “inEVM”, which is compatible with Ethereum Virtual Machine (EVM) and connects the Ethereum, Cosmos and Solana networks, will have its infrastructure in Arbitrum Orbit Toolkitwhich allows developers to build customizable chains powered by Arbitrum while accessing interoperability across multiple ecosystems.
The move could theoretically inject new energy into the INJ token, which has outperformed nearly all of its peers in digital asset markets over the past year, jumping from one point to one. market capitalization of more than US$4 billion.
This year, crypto markets have largely rallied, with the benchmark CoinDesk20 index gaining 25% year to date. But at least in the eyes of traders, INJ has reversed, falling nearly 30% so far in 2024.
According to a press release seen by CoinDesk, the developer integration means it “unlocks new building opportunities within the Ethereum L2 ecosystem while maintaining Injective’s lightning-fast speeds and low fees.”
The teams also shared that transactions on the inEVM network will contribute to the tokenomics of the Injective ecosystem, including the burning mechanisms for its $INJ token, “which systematically aggregates and burns a percentage of all protocol fees on a weekly basis.”
“The importance of integrating Injective with Arbitrum goes beyond simply building networks or blockchain infrastructure,” said Eric Chen, co-founder of Injective Labs, in the press release. “It reinforces the fundamental principle of interoperability – closing the gap between Ethereum, Cosmos and other widely adopted L1s – for an ecosystem where cross-chain assets and liquidity can be truly composable across ecosystems.”