Injective (INJ) Crashes 90%: Market Cap Falls to $300M Amid Weak Fundamentals

TLDR:

• Injective INJ lost 90% as market cap fell from $4B to $300M due to weak fundamentals.
• Total value locked remained under $100M, failing to support previous market hype.
• Price failed to reclaim $10 breakout level, signaling structural trend weakness.
• Large protocol wallets reduced circulating liquidity, increasing volatility and pressure on INJ.

Injective (INJ) has experienced a steep decline, losing nearly 90% of its market value. The token’s market cap dropped from almost $4 billion in 2024 to around $300 million today.

Early hype around on-chain derivatives, fast execution, and new integrations fueled a vertical price surge. However, underlying fundamentals such as total value locked (TVL) and trading activity did not grow at the same pace, leading to structural weaknesses that became evident over time.

Rapid Valuation and Price Structure Shifts

During 2024, Injective’s market cap approached $4 billion while TVL remained under $100 million, according to a report by Our Crypto Talk.

The gap between valuation and actual capital suggested the market was pricing in significant future growth. Investor attention focused on derivatives and integration narratives rather than tangible ecosystem adoption.

The token’s price rallied sharply, creating a vertical move that often signals overextension. When market risk appetite slowed, the price faced pressure as participants questioned whether usage and capital were sufficient to support such a high valuation.

In late 2025, INJ attempted to reclaim its previous $10 breakout level. The attempt failed, showing that buyer conviction was weakening.

Technical indicators, including the RSI, did not regain strength, and the trend channel continued downward. The failed breakout signaled a structural shift, with previous support zones now acting as resistance.

Price behavior reflected not just a temporary dip but a broader market reassessment. When a token cannot hold key technical levels, it indicates that participants are hesitant to enter at higher prices, resulting in a sustained decline.

TVL Limitations and Supply Concentration

Injective’s TVL never matched its market hype. At a nearly $4 billion market capitalization, TVL remained under $100 million, highlighting limited capital adoption.

Competing chains offered deeper liquidity and lower fees, attracting more participants. Without a strong TVL foundation, price momentum was harder to maintain, making the market correction inevitable.

Supply concentration also added downward pressure. A wallet labeled “Peggy Bridge Proxy” holds roughly $248 million of INJ, representing a large portion of the total market cap.

Although the wallet is protocol-related, its presence reduces effective circulating liquidity, making the token more sensitive to market movements.

Thin tradable supply contributes to higher volatility and faster drawdowns. It also complicates recovery because fewer tokens are available for market participants to absorb buying or selling pressure.

At its current $300 million valuation, INJ’s recovery would require meaningful TVL growth, increased derivatives volume, and broader participation beyond structured wallets.

Reclaiming previous technical levels would further indicate a healthier market structure and renewed investor confidence.

This reset in expectations may provide a clearer foundation for future growth if underlying metrics improve.

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