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Injective Protocol (INJ) is building new momentum at the moment, having seen a considerable sell off from slightly north of $15 in early September. It is currently in the process of establishing a series of successive higher steps as the coin builds momentum.

Injective Protocol was once a darling of crypto traders, if you go back to the heady days of late April when it carved out its 52 week high at $24.24. That looks like it turned out to be the magic number for Injective Protocol. Volumes collapsed over the summer months as the lockdown was eased, but we have seen some more trading momentum starting really once the schools went back and housewives hit their trading screens again.

Trading volumes are certainly getting back up there for INJ – we are seeing market volumes running at about three times where they were in mid August.


Injective Protocol wants to re-design derivatives trading

Injective Protocol has some ambitious dreams underpinning it: it wants to create a more free and decentralised financial system through decentralisation. It is a more serious coin than a lot you come across in the market and has attracted a number of serious backers who like the look of its vision. Among them are Binance, Blocktower, Cadenza and Bitlink Capital, along with the likes of Mark Cuban and Sandeep Nailwal.

Last December Injective Protocol launched the testnet for its DeFi protocols for cross-chain derivatives trading, which was supported by Binance. It has raised $10m in a party funding round which included a number of big hitters in the cryptocurrency space.

We like the look of this one: Injective Protocol is trying to shake up the derivatives trading space in an innovative way which may start costing the team at CME Group some sleep if it plays its cards right. It is aiming to build a much more level playing field that it would be hard for regulators to complain about. It wants to combine the advantages of decentralised exchanges with all the legacy issues that come with those (e.g. front running, scams, hacks). It holds out the prospect of higher settlement speeds, lower fees and none of the gas fees that come with centralised platforms.

Legacy institutions and practices are still creating drag in terms of speed and fees within the derivatives trading architecture. According to analysis from TechCrunch, Injective Protocol is seeking to build a decentralised competitor to Robinhood. It allows the creation of synthetic tokens that can represent stock in public companies and indices, so effectively a derivatives contract that can trade 24-7 with instant finalisation, which is what DeFi is all about really.

In the words of Eric Chen, CEO of Injective Protocol, talking to TechCrunch recently, “Legacy institutions and practices create a number of artificial delays and middlemen that prevent innovation in the financial markets ecosystem. At Injective, our goal is to enable an unparalleled decentralized trading experience, whereby retail traders globally can for the first time access limitless markets without the typical predatory fees and slow transaction times”

This is music to our ears. Injective Protocol looks like it could end up doing some very interesting things for the online trading experience. Let’s watch that price closely.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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