3 indicators that helped INJ selling pressure in February

Injective (INJ), a Layer 1 blockchain project designed for DeFi applications, has recently delivered significant price action. The token is up more than 12%, while most altcoins remain deep in the red.

What factors lead to this recovery? Can you sustain the upward momentum of the INJ this month?

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IIP-619 approved and resulted in a 12% increase in DAT concentrations.

News surrounding IIP-619 fueled today's price rally.

IIP-619 represents a major management proposal on the Injective network. It aims to significantly improve the injective real-time EVM architecture. The proposal strengthens support for next-generation payments and expands the MultiVM ecosystem.

A proposal requires:

Maximize the performance of the MultiVM architecture by dramatically improving speed and processing capacity across multiple virtual machines, including injective native EMM. Leverage deep integration with Chainlink oracle to facilitate real-time value feeds for real-world assets (RWA). This update ensures faster and more accurate pricing information, which remains critical to derivatives trading and RWA markets.

A total of 99.99% of participants supported IIP-619. Following Injective's official announcement, INJ jumped more than 12 percent, from $3 to $3.40. At one point the price went up to $3.95.

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Positive developments have brought investors' attention back to INJ after months of declines.

Another factor driving renewed interest is the pineapple financial crowdfunding movement. The company recently launched a new dashboard that shows it has accumulated more than 7 million INJ tokens, which is equivalent to 7% of Ejective's total supply.

As the chart shows, Ananas Financial increased its holdings throughout February.

Additionally, Artemis data shows that transaction fees on daily injectables remain at around 14,000 INJ. The network has had a steady upward trend in the payment generation process for the past several years.

This development represents real activity on the chain. Users continue to pay, trade and build applications on the network.

“Compare it to the 2022 levels, the difference is night and day. As the payments continue to increase, it shows that the activity is real. Users are squeezing, building and trading. They are not just holding a signal and waiting. That's what really matters in the long run.” Everstack, a flexible service provider, commented.

However, these positive signs may not be enough to overcome the widespread negative sentiment surrounding the altcoin. INJ is still trading over 90% of its all-time high. The recovery path will require a significant influx of new capital from new investors.