In an intriguing move, a popular DeFi token, Injective, experienced a massive rally. It was believed to be a result of positive market sentiment, as they had shifted from being neutral to greedy as the Bitcoin price resumed its upswing. However, some metrics do point towards a probably fabricated bull run, which may end up in a huge dump very soon.
The INJ price has been on the run! The token managed to attract over $500 million in volume, with a massive jump of over 150% in just a couple of days. How did the price manage to soar while the broader markets displayed a significant bearish influence? Will the jump in volume and price lead the price to over $50 before the end of 2023?
It is worth noting that INJ’s price has been among the best performers for the past few days. With the recent price action, the token has elevated its ranking and stands currently in the 32nd position. However, these all appear less organic, which may eventually result in massive losses very soon.
Is the INJ Price Rally Manipulated?
One of the influencers has raised concerns over the INJ price rally and believes the price is currently manipulated. The influencer claims the platform has always been a market maker and a VC’s play. Moreover, it is believed that the INJ price is surging only because these market makers are artificially creating high spot buying pressure to trap retail investors and carry out coordinated sell-offs.
To validate the claims, the influence considers the Total Value Locked (TVL) of the Injective, which is extremely low compared to that of the filly diluted market cap (FDV).
The TVL has dropped notably since November, and at the same time, the INJ price’s flight took off. The influencer points out the huge gap between the FDV and TVL, which substantiates the claim. Besides, the data from DeFi Lama suggests the largest Dapp on layer 1 is Helix Protocol, which manages only $7.4 million in daily trading volume. Besides, it has been managing over 60% of the ecosystem’s TVL, which indicates its dominance within the ecosystem.
Will INJ Price Continue With its Bullish Streak?
The platform announced an airdrop for its users some days ago, and eligible users are required to stake INJ to qualify. Therefore, the retail traders will refrain from selling their tokens until the mentioned timeframe, which is quite a long time to plan a coordinated dump on retail. Therefore, it is believed that the price may keep on skyrocketing and eventually reach $50 in a short while from now, while the true target is set at $100.
However, it is important to note that the token has been rising regardless of market trends and sentiments. No doubt, the gap between TVL and FDV is not sufficient to validate a manipulation, but a steep rise in the price does raise concern. Hence, it is advisable to have a close look at the Injective price trend before jumping on the moving train.
