The price of Injective (INJ) rallied sharply, gaining over 12%, after a critical network governance proposal, IIP-619, received near-unanimous approval from the community. The token climbed from around $3 to trade near $3.387, with an intraday spike reaching $3.95. This surge provided a stark contrast to the token's recent bearish trend, where it had been testing the critical $3.00 support level following a 76% decline over the past year.
The governance proposal, IIP-619, passed with 99.99% support from staked participants. It authorizes a major mainnet upgrade designed to launch an advanced MultiVM architecture. The upgrade aims to enhance interoperability, increase network speeds, and improve support for dynamic real-world assets (RWAs). A key component includes deeper integration with Chainlink oracles to provide real-time data feeds, strengthening the infrastructure for derivatives and DeFi applications.
Alongside the protocol catalyst, institutional accumulation provided additional support. Pineapple Financial disclosed through its DAT initiative that it has accumulated over 7 million INJ, representing approximately 7% of the total token supply. On-chain data from Artemis indicates sustained network usage, with daily transaction fees hovering around 14,000 INJ, a metric that has shown a multi-year uptrend.
Despite the positive price action, analysts remain cautious. INJ is still trading more than 90% below its all-time high above $40, and the weekly price structure remains bearish. Technical indicators like the Relative Strength Index (RSI) had signaled oversold conditions near 29-32 prior to the rally. The market now views the execution of the IIP-619 upgrades as a critical test, with focus shifting to whether the improvements translate into measurable gains in network throughput and developer adoption.
