Can Injective (INJ) make money with dynamic DApps and Smart Contracts?

Injective (INJ) is a Layer 1 blockchain they built for dynamic DApps and CosmWasm smart contracts.

A Layer 1 blockchain is the first level of a blockchain ecosystem. In particular, a Layer 1 blockchain is the main chain of a network. All the DApps, sidechains, Layer 2 blockchains, and apps operate off of the Layer 1.

They claim Injective is the first blockchain that supports auto-executing smart contracts. Hence, Injective is a tool for automating smart contracts. To explain, early smart contracts just issued and assigned tokens.

Injective (INJ) Smart Contracts

Automated or auto-executing smart contracts can perform far more complex tasks. For example, an auto-executing smart contract could vet and enroll members in a platform. Similarly, auto-executing smart contracts could administer insurance policies and credit lines.

Injective (INJ) uses the CosmWasm smart contract platform. They claim CosmWasm is the only public-blockchain smart contract platform that operates outside of Ethereum (ETH). They claim CosmWasm is more secure because it operates outside of Ethereum.

To elaborate, CosWasm operates its own virtual machine. A virtual machine is a digital computer that runs a blockchain. Smart contracts need to connect to a virtual machine to run. Most smart contracts connect to the Ethereum Virtual Machine (EVM). Many people the EVM as insecure because many apps use it. They claim CosmWasm can create more powerful and better performing smart contracts.

CosWasm uses the Cosmos high performance blockchain. They claim CosWasm can process 10,000 transactions per second (TPS). Hence, Injective and CosWarm could make smart contracts faster.

They built CosWarm for Inter-Blockchain Communication (IBC). Theoretically, an IBC smart contract could operate on several blockchains. For example, Ethereum, Comsos, and Binance (BNB).

Auto-Executing Smart Contracts and DApps

Smart contracts are important because decentralized applications (DApps) need them to operate. For example, a lending DApp needs smart contracts to execute loans.

A DApp is a digital app built to operate on a blockchain, or a peer-to-peer (P2P), network. In particular, a DApp operates on a network of computers instead of a single computer. Hence, they build DApps for the cloud.

They build most DApps on Ethereum (ETH) because it is the most popular blockchain. However, many developers are skeptical of Ethereum’s security and reliability, which creates an opening for Injective (INJ).

The Injective DApps

Injective (INJ) DApps include the Helix decentralized crypto assets and derivatives exchange. There is also the Astroport Automated Market Maker (AMM). An AMM builds markets for other DApps and blockchain protocols.

The Frontrunner sports prediction market. They claim Frontrunner lets users by shares of athletes and teams with crypto. Frontrunner also operates a sports prediction app that lets users set betting odds.

I think Frontrunner is a fantasy sports application. There is a fantasy sports market. The US fantasy sports market grew from $8.62 billion in 2020 to $8.88 billion in 2021, Statista estimates. Conversely, Statista estimates the US fantasy sports market shrank to $8.86 billion in 2022.

Major apps in Injective’s ecosystem include: Binance, Binance Labs, BNB Chain, Coinbase, Coinbase International, BH Digital, Cosmos Hub, Coinbase International, Gemini, MetaMask, Kraken, Trezor, Polygon, Solana, Ledger, Bored Ape Yacht Club, Avalanche, Binance Staking, and Chainlink.

An interesting Injective DApp is Pyth. Pyth lets users secure smart contracts with reliable data from institutional sources. For example, credible price data. Decentralized Finance (DeFi) apps need such data to make decisions.

Another Injective DApp Wormhole connects tokens, NFTs, and apps to the xChain. The xChain is a blockchain explorer that lets users explore multiple blockchains. Similarly, Figment provides blockchain infrastructure, such as staking solutions and Application Programming Interfaces (APIs).

What Value Does Injective (INJ) offer?

Mr. Market has a strong interest in Injective (INJ). For example, CoinMarketCap named Injective the second most trending cryptocurrency on 16 April 2023.

CoinMarketCap gave Injective a $9.16 Coin Price, and a ranking of 70 on 17 April 2023. Injective also had a $732.497 million Market Capitalization, a $916.176 million Fully Diluted Market Cap, and a 24-Hour Market Volume of $298.711 million on 17 April 2023. There was also an $295.489 million Centralized Exchange (CEX) Volume and a $2.97 million Decentralized Exchange (DEX) Volume on 17 April 2023. They base those numbers on an 80.006 million INJ Circulating Supply and a Total Supply of 100 million INJ.

I think INJ is an interesting cryptocurrency because many DApps that could make money (such as Frontrunner) are operating on Injective. Speculators who want to cash in on the popularity of smart contracts need to examine Injective.