How to do token analysis: Take INJ coin as an example

Author: lesley@footprint.network, Compiler: cici@footprint.network, Data source: INJ Token Dashboard (only includes Ethereum data)

In the world of cryptocurrencies and digital assets, token analysis plays a vital role. Token analysis refers to the process of delving into data and market behavior related to a token. This is a detailed process that involves a thorough examination of the price and liquidity associated with these assets.

Through token analysis, we can obtain investment decisions on market trends, risk factors, trading activities and capital flows.

The INJ token is the native cryptocurrency of Injective Protocol, a decentralized exchange (DEX) offering cross-chain margin trading, derivatives, and FX futures.

Injective

As a Layer 2 application running on the Cosmos blockchain, Injective uses an order book model, which makes it different from AMM-based DEXs such as Uniswap. The INJ token acts as a governance token, staking asset, and transaction fee within the platform, eliminating the need for network gas fees.

How to analyze INJ token?

Token analysis is crucial, generally speaking, what are the key metrics to consider?

INJ Token Price per Day for the Last 30 Days

Token Price

Token prices, measured in both fiat and cryptocurrency forms, are a key metric for assessing the health and potential of the token market. The price of the INJ token has experienced a significant drop within a month. On December 24, the token price was valued at 42.17, but by January 23, it had fallen to 34.82. The 17.4% drop may be indicative of underlying market sentiment and factors affecting the cryptocurrency market.

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INJ Daily Token Trading Addresses

Trading Addresses< /h3>

We have observed a decrease in the number of unique wallet addresses for active transactions in INJ in the past month. This metric is crucial as it provides insight into a coin’s trading activity and investor engagement.

INJ Daily Token Trading Value in CEXs

Net flow in CEX Analysis: Identifying Investor Behavior Trends

Insights into investor behavior can be gained by analyzing the net flow of tokens to and from centralized exchanges (CEX).

INJ Token Holder List

Token Concentration

Analyzing token concentration is critical as it reveals key insights into market integrity and vulnerability to manipulation. By analyzing a token’s distribution among its top holders, we can gain insight into the influence of whale investors and the overall health of the token market.