Why Injective is Set to Overtake Solana

Solana was in the spotlight during the last couple of months. It’s the comeback kid, from being down to under $8 a year ago to a recent high of $121 for SOL. The chain is currently the 5th largest project measured by market cap. During last year, SOL saw a price increase of 285%. 

However, at the same time, other chains are also doing well. The Layer 1 space is a competitive one. One chain that stands out is Injective (INJ). The INJ token went up by 1646% during last year and reached a new ATH of $45.01 on the 9th of January. They also became the chain with the lowest transaction cost of all chains. Let’s take a look at what else Injective has cooking, and if it can surpass Solana.

1) Gas Compression on Injective

Last week, on the 19th of January, Injective launched Gas Compression. On their blog, it’s introduced as ‘one of the largest technical breakthroughs’. And the result IS impressive. Injective now boasts the lowest transaction fees of all chains. In the whole crypto space! Well, to be honest, that’s quite a feat.

This honor was Solana’s, but not anymore. You can see in the picture that Injective beats Solana, hands down. Solana is at $0.00045. However, with the current INJ price, the Injection transaction fee is at $0.0003. That’s a third cheaper compared to Solana. To clarify, the Injective fees are 0.00001 INJ. So, there’s still a bit of room for INJ to see a positive price change and still have the lowest transaction fees.

Various Costs on Injective

This is also great news for developers, users, and even institutions. So, let’s take a look at what some actions will cost you:

  • Minting 1,000 NFTs: On Injective, that’s going to cost you $0.30. That’s 100x cheaper compared to Ethereum. It’s 5x lower compared to Polygon.
    Compared to Solana, it’s still 50% cheaper. Now think about the costs of a collection of 10,000 NFTs. The price difference is stunning and grows exponentially.
  • High-frequency traders: They often have complex transactions. This can involve hundreds or thousands of transactions per second. That’s no longer a problem on Injective. You can batch thousands of transactions into a block.
    Furthermore, the transaction costs are very low. The lowest is currently available. 7 And remember, Injective is a financial chain. All Dapps and the ecosystem consist of financial apps.

These are exactly the high-frequency traders who need this. Users like you and me also benefit. For example, with:

  • Lending.
  • Governance voting. 
  • Minting NFTs. 
  • Staking. 

We can do all these things and don’t have to worry about high transaction fees. The Injective transactions are almost free. Dapps that are already available on Injective can easily change the gas configuration. It was 500,000,000, the new rate is 160,000,000 INJ.

The Volan Upgrade

On the 11th of January, Injective also introduced the Volan upgrade. This also saw some great improvements. To date, this was the largest update to their mainnet. Here are some of the upgraded features:

  • Improved scalability. Latency is reduced by up to 90%.
  • Expanded interoperability.
  • Novel burn capabilities. It makes INJ even more deflationary.
  • Real-World Asset (RWA) Module to create and manage permissioned assets. This is great for institutions. It allows them to meet compliance needs when launching a permissioned asset. That’s because they stay in control of the addresses that can interact with the assets.

This first round sees Injective with quite some impressive new features. So, let’s take a look at what else is brewing under the Injective hood.

2) Full Token Unlock on Injective

The next big news for Injective is that all its tokens are now unlocked. The last unlock event was only a few days ago, on the 21st of January: 3.67 INJ tokens were unlocked, or $130 million at current rates. 

However, instead of a price dump, the INJ price went up. Typically, a token unlocks events to see a price decrease. This event turned out to be a catalyst. Let me explain why. 3.33 million tokens were for the team. However, the team already had 16% of their total allocation unlocked. So, there was no sales pressure. The remaining 333k tokens were for advisors. 

The advisor’s unlock was worth around $13 million. But check this out, daily trading volume for INJ was around 150 million. The market could easily absorb these tokens. That’s providing the advisors sold them at all. Furthermore, markets look forward. This was the last unlock, it’s actually a bullish signal.

Staking INJ

On a different note, 49 million INJ are already staked. The current circulating supply is 80.8 million, so that’s 60.6% INJ staked. The rewards are 15.83% and 5.8 million INJ are already burned.

Now, you may ask where the INJ staking rewards come from. To make a long and technical story short, it seems like a legit way. It’s due to inflation, at least for the most part. This contrasts with Solana, which heavily subsidizes its staking rewards. Injective staking rewards come from inflation and other protocol incentives. 5C We can also observe increased staking participation.

Being a deflationary token also helps. Something we like here at Altcoin Buzz. Injective already installed the 2.0 burn mechanism. Each week, Injective burns around 15k INJ.  That’s 60+K INJ or $1.9 million per month. That’s deflation for you in full swing, right there. 

And that’s a big difference to Solana. Solana has an unlimited supply of SOL tokens, it’s an inflationary token. Solana’s staking % is around 68%. However, the rewards are only 5% So, that’s 2-0 for Injective.

To sum up, Injective (INJ) has some impressive stats and features. Currently, it’s listed as #31 by market cap. Solana holds spot #5. However, having said that, Injective seems to be ticking all the right boxes. The uptrend doesn’t seem to be at an end for its INJ token. It has many bullish things going on. It may surpass Solana in the future.


The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.


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