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Injective, Underperforming in Crypto Markets, Now Plans Layer-3 Chain on Arbitrum
Injective’s "inEVM," which connects the Ethereum, Cosmos, and Solana networks, will rely on Arbitrum's Orbit toolkit.
Updated May 9, 2024, 6:08 p.m. Published May 8, 2024, 1:00 p.m.
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Injective, a Cosmos-based blockchain whose INJ token price jumped a stunning 33-fold in 2023, only to tumble this year, is now planning a significant expansion – launching its own layer-3 network in the Ethereum ecosystem, based on the layer-2 project Arbitrum's technology.
Injective’s "inEVM," which is compatible with the Ethereum Virtual Machine (EVM) operating system and connects the Ethereum, Cosmos and Solana networks, will rely for its infrastructure on Arbitrum's Orbit toolkit, which allows developers to build customizable chains with Arbitrum’s technology while accessing interoperability between multiple ecosystems.
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The move could theoretically inject fresh energy into the INJ token, which outperformed nearly all of its peers in digital-asset markets last year, jumping at one point to a market capitalization of more than $4 billion.
This year, crypto markets have moved broadly higher, with the benchmark CoinDesk 20 index gaining 25% year-to-date. But at least in the eyes of traders, INJ has suffered a reversal, falling nearly 30% so far in 2024.
According to a press release seen by CoinDesk, the integration for developers means that it “unlocks new opportunities to build within the Ethereum L2 ecosystem while retaining Injective’s lightning-fast speeds and low fees.”
The teams also shared that transacting on the inEVM network will contribute to the tokenomics of the Injective ecosystem, including the burning mechanisms of its $INJ token, “which aggregates and systematically burns a percentage of all protocol fees on a weekly basis.”
“The significance of Injective’s integration with Arbitrum extends beyond just building blockchain networks or infrastructure,” said Eric Chen, the co-founder of Injective Labs (and a speaker at this year's Consensus festival), in the press release. “It enforces the fundamental principle of interoperability – closing the gap between Ethereum, Cosmos and other widely adopted L1s – for an ecosystem where cross-chain assets and liquidity can be truly composable across ecosystems."
Read more: Injective Introduces 'ERC-404' Port to Capitalize on the Hype Around the Experimental Token Standard
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