Injective Protocol, a DeFi-centric platform utilizing Cosmos technology, is drawing significant attention due to its gas fee revenue distribution to validators in the third quarter of 2024. Despite INJ, the platform’s native currency, experiencing a downturn after peaking at $52 earlier this year, this development offers a substantial confidence boost. The trends suggest an influx of users to Injective, potentially benefiting INJ in upcoming sessions.
Recent data from CryptoRank indicates that Injective Protocol generated an impressive $4 million in revenue from gas fees. In this system, gas fees are levied on each transfer or smart contract deployment, similar to other public ledgers like Bitcoin or Solana, and are distributed to the validators or miners who operate the nodes.
Notably, Injective Protocol’s revenue surpasses that of larger blockchains like BNB Chain and Avalanche. According to CoinMarketCap, BNB Chain generated $3.4 million, while Avalanche pulled in $2.1 million in the same period. Injective also outperformed some of the top Ethereum layer-2 solutions, including Arbitrum, Optimism, and Blast. Arbitrum, the largest among these solutions, manages over $13.2 billion in total value locked (TVL) but still falls short in revenue compared to Injective.
However, major blockchains like Ethereum, Tron, and Solana generated more revenue than Injective. From July through September, Ethereum directed $159 million to its validators, while Tron and Solana collectively moved over $200 million. Tron’s revenue boost, largely attributed to meme coin activities following the launch of SunPump in August, and Solana’s benefit from increased decentralized exchange (DEX) volume and meme coin activity, are notable factors.
As of October 8, Injective manages over $40 million in TVL, according to DeFiLlama data, and has processed over one billion onchain transactions. The recent announcement of Injective 3.0 in early October promises further growth. This upgrade includes changes to the protocol’s tokenomics, making INJ deflationary by removing a portion of it from circulation, increasing scarcity.
Currently, the price of INJ is stable within a descending channel, finding support at $15. Despite being down 60% from its March highs, a break above this channel could propel the token back to its 2024 highs of around $52, providing a potential catalyst for recovery and growth.