Injective’s TVL Climbs 14% Amid Buyback Launch, But INJ Token Sinks 8%

The Injective ecosystem is seeing a surge in on-chain activity even as its native token struggles to keep pace. Total value locked (TVL) on Injective has jumped about 14% in the past 24 hours, according to data from DeFiLlama, reflecting a wave of new inflows into the network. Yet, the $INJ token itself has fallen roughly 8% over the same period, underscoring a sharp disconnect between ecosystem growth and market sentiment.

The divergence comes just as Injective kicks off its new Community Buy-Back program, a mechanism designed to return value to participants and remove tokens from circulation.

The buyback, which opened on Wednesday, allows community members to commit $INJ to a pool that will be used to purchase and burn tokens, reducing overall supply. In return, participants receive a 10% yield from Injective’s ecosystem revenue.

(Injective Buyback page/ Injective)

On paper, this setup should be supportive for the token: rising TVL suggests growing activity and confidence in the ecosystem, while the buyback mechanism decreases supply. But the market appears to be taking a more cautious view.

The loop seems to suggest users are buying $INJ to qualify for the reward, staking to earn the yield, and then selling back into the market once it’s locked in. The result is rising on-chain activity, including inflows and staking metrics, but sustained sell pressure on the token itself.

The dynamic highlights a deeper challenge for Injective. While the project was one of the breakout names in 2024, momentum has since cooled, with the $INJ token price down 60% over the past year. The buyback is an ambitious attempt to reenergize the community and spark fresh engagement.

Read more: Injective's $INJ Year-to-Date Gain Rises to 3,000% After Latest Jump