📈 Injective on the Scale: EVM Momentum vs. Regulatory Winds 📉
The recent Altria update of Injective has introduced native compatibility with EVM, attracting over 40 projects and with potential TVL growth between 60% and 200%. This expansion, combined with the burning of 60% of the protocol's fees, strengthens its base. However, the withdrawal of the INJ/FDUSD margin pairs on Binance eliminated 28 million USD in open interest, which could reduce volatility by 15-30%. Additionally, there is uncertainty regarding the SEC's approval of an INJ staking ETF, with a decision expected in the first quarter of 2026.
🔍 What does it imply?
Binance/Regulators: Binance's action aims at reducing speculative liquidity, impacting short-term volatility. The SEC, for its part, keeps institutional capital entry in suspense due to its caution regarding staking ETFs, setting an important precedent.
Injective/Development: Injective's strategy with EVM expansion seeks greater adoption and an increase in total value locked, consolidating its fundamentals. However, the platform faces the challenge of overcoming liquidity pressure and immediate regulatory uncertainties.
Can Injective's deflationary tokenomics and fundamental innovation counter the liquidity crisis in altcoins and maintain the critical level of 5.04 USD? 🌐
