Blockchain
Injective, underperforming in cryptocurrency markets, now plans Layer-3 chain on Arbitrum
Injective, a Cosmos-based blockchain whose INJ token price has risen a stunning 33 times in 2023set to collapse this year, it is now planning a significant expansion: launching its own layer-3 network in the Ethereum ecosystem, based on the technology of the layer-2 Arbitrum project.
“inEVM” by Injective, which is compatible with Ethereum virtual machine (EVM) and connects the Ethereum, Cosmos and Solana networks, will rely for its infrastructure on Arbitrum Orbit Toolkitwhich allows developers to create customizable chains with Arbitrum technology while accessing interoperability across multiple ecosystems.
The move could theoretically inject new energy into the INJ token, which outperformed nearly all of its peers in digital asset markets last year, at one point jumping to a market capitalization of over 4 billion dollars.
This year, cryptocurrency markets have moved broadly higher, with the benchmark Coin Desk 20 the index has gained 25% since the beginning of the year. But at least in the eyes of traders, INJ has undergone a turnaround, falling nearly 30% so far in 2024.
According to a press release seen by CoinDesk, the integration for developers means it “unlocks new opportunities to build 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 of 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 blockchain networks or infrastructure,” said Eric Chen, co-founder of Injective Labs, in the press release. “It applies the fundamental principle of interoperability, bridging 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.”