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Injective Expands with the Launch of Layer-3 Blockchain on Arbitrum
Injective, a blockchain platform originally built on Cosmos technology, has seen a meteoric rise with its INJ token increasing thirty-three times in value over the course of 2023, only to face a sharp decline this year. With a strategic pivot, Injective is now ready to expand its reach by launching a Layer 3 network within the Ethereum ecosystem, leveraging Arbitrum’s technology.
The new layer, called “inEVM”, is designed to be compatible with the Ethereum virtual machine and aims to connect three major blockchain networks: Ethereum, Cosmos and Solana. The inEVM will use Arbitrum’s Orbit toolkit, which allows developers to create customizable chains while ensuring interoperability between different ecosystems.
This expansion could potentially rejuvenate interest in the INJ token, which outperformed most of its competitors last year, reaching a peak market capitalization above $4 billion. Despite the overall bullishness of the cryptocurrency markets in 2024, with the CoinDesk 20 index rising by 25%, INJ saw its value decrease by almost 30%.
According to Injective Labs, this initiative will not only facilitate development within the Ethereum layer-2 space, but will also maintain Injective’s characteristics of high speed and low transaction costs. Additionally, operations on the inEVM network will support the tokenomics of the Injective ecosystem through a mechanism that regularly burns a portion of all protocol fees.
Eric Chen, co-founder of Injective Labs, highlighted in a press release that integration with Arbitrum is critical to improving blockchain networks and infrastructure. He highlighted the importance of interoperability in bridging gaps between major Layer 1 platforms, thus enabling a more seamless exchange of assets and liquidity between various blockchain ecosystems.
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