Will the Injective public chain experience an ecological explosion or be a flash in the pan?

Recently, a well-established public chain has once again attracted market attention. Data shows that this public chain has attracted a large amount of capital inflow in the past month, with a net inflow of approximately $142 million, second only to Ethereum. This phenomenon has sparked discussions within the industry about its ecological development prospects.

In addition to the inflow of funds, this public chain has also shown significant growth in on-chain fees, active users, and token trading volume. Does this mean that this once-promising public chain is about to experience an ecological explosion? Or is it just a temporary resurgence?

High returns attract a large influx of funds

Data shows that the public chain has recently achieved a net inflow of $142 million. Although the absolute amount is not high, it ranks second among all public chains. In-depth analysis reveals that the reason for this phenomenon is that the public chain has welcomed a wave of rapid large-scale capital inflow, while the net outflow of funds is very small, at only $11 million.

It is worth noting that 98.5% of the $142 million was completed through cross-chain bridges. Market analysis agencies point out that this large influx of capital is mainly attributed to the launch of an institutional-level yield platform on this public chain. The 30% APY vault offered by the platform may be an important reason for attracting funds.

However, the investigation found that the hard cap of the vault is only $5 million, which is insufficient to fully accommodate this influx of funds. Therefore, the funds that failed to participate in the vault investment may once again flow out in the short term.

From Derivatives to RWA: The Transformation Journey of Public Chains

In addition to capital inflow, the public chain has also seen significant changes in its ecosystem recently. At the end of April, its mainnet completed an important upgrade, introducing dynamic fee structures and smart memory pool technologies, enhancing network performance.

In addition, the public chain has launched an oracle framework for RWA and has developed on-chain foreign exchange markets for the euro and the pound based on this framework. These actions indicate that the public chain is shifting its development focus towards the RWA sector.

As a veteran public chain, its initial core positioning was as a decentralized derivatives exchange. However, its derivatives trading volume still lags significantly behind emerging competitors. This may be one of the reasons for its choice to shift towards the RWA direction.

Recent data suggests that this transformation seems to have had some effect. In late May, the derivatives trading volume of this public chain reached a peak of $1.97 billion, far exceeding other periods. The daily active users also surged from 6,300 in February to 47,900 recently, an increase of about 7.6 times.

However, despite the increase in user activity, the TVL of the public chain has continued to decline, currently standing at only $26.33 million. This indicates that its DeFi projects still lack sufficient appeal for funds.

The short-term performance of the tokens is impressive, but there is still a distance to the peak.

On the economic front, the governance token of this public chain currently has a market value of approximately $1.26 billion, down 76% from its historical peak of $5.3 billion. However, it has rebounded from a low of $6.34 in April to a recent high of $15.48, an increase of 144%, which is relatively impressive among the established public chains. Whether this rebound can be sustained remains to be seen.

In addition to the above actions, the public chain has recently attracted several well-known institutions to join the ranks of validators and has launched some AI-related products. Overall, the public chain is actively seizing new narratives such as AI and RWA for transformation. Although it has indeed achieved some growth in recent months, it still has a significant gap compared to mainstream public chains.

Currently, the ecological transformation and revitalization of this public chain is still in its initial stage. The recent influx of funds seems more like an important market sentiment test and a demonstration of ecological potential, rather than a fundamental shift in the landscape. Whether its strategic tilt towards RWA can truly create differentiated advantages and translate into sustained ecological prosperity and value capture still needs to overcome many challenges and withstand the long-term test of the market.

Whether the short-term data rebound is a flash in the pan or a positive signal in a long recovery journey, only time can provide the final answer. For this veteran public chain, the real test has only just begun.