Injective Integrates Fetch.ai And ASI: Why Is INJ Down?
Injective, the DeFi-centric protocol, has recently made major moves. Besides boasting of high throughput and low fees while protecting traders from maximal extractive value (MEV) bots, the platform has been striking key partnerships.
Injective Integrates With Fetch.ai And ASI
This week, the proposal by Fetch.ai and the Artificial Superintelligence Alliance (ASI) community to integrate Injective was passed synonymously. The proposal passed with 100% of the votes agreeing with the move.
Looking at voting data, over 324 million FET voted to endorse the idea, with only 656 FET rejecting it. No one voted to abstain or veto. Voting started on October 23 and ended five days later on October 28.
According to the proposal, the goal is to revive the expired IBC client for Injective under “Revive expired IBC client for Injective.” In this way, Fetch.ai, now part of the ASI Alliance, can harness the power of AI within the sprawling Injective DeFi ecosystem.
This arrangement will allow Fech.ai, an AI-centric platform, to directly plug its machine learning and AI capabilities into the Injective platform.
Out of this, users will benefit from streamlined and leveraged AI-enabled tools when trading. The team also said they would benefit from improved liquidity management and asset allocation.
Even with this deal, Injective and ASI will continue operating independently. The integration isn’t a merger but an Injective tapping into ASI’s AI capabilities.
Why Is INJ Down?
Bullish as this may be, INJ prices ticked lower, looking at the events in the daily chart. Injective bulls have yet to reverse losses posted on October 25 comprehensively. Accordingly, despite the series of higher highs over the weekend and in the first half of the week, sellers are in control.
So far, INJ is down 20% from October highs and continues consolidating inside a $10 zone. Clear resistance is around $25, while support is at $15. If the bulls of Q1 2024 flow back, momentum will likely pick up once buyers break above the $25 level, preferably with increasing engagement.
Besides improving crypto sentiment and rising total value locked (TVL) across DeFi, INJ could benefit from Injective’s core feature.
The protocol has the highest revenue-to-fully diluted valuation (FDV) ratio, even better than Ethereum.
The high metric translates to Injective boasting of an efficient revenue generation mechanism that could further boost prices.