Injective Jumps 6.5% on ETF Speculation and Supply Squeeze

Injective (INJ) surged 6.5% in 24 hours, driven by renewed interest in potential US ETFs and a supply squeeze. The rally followed comments from CEO Eric Chen at Korea Blockchain Week 2026, where he suggested US ETFs tied to INJ could launch before 2027. The SEC is reviewing two ETF applications: the 21Shares Injective ETF and the Canary Staked INJ ETF, both of which updated their filings in September 2026. Social media posts amplified the speculation, framing the staked INJ ETF as a catalyst for institutional inflows.

Injective's institutional and regulatory progress has also gained traction. The Meridian upgrade, shipped on September 24, is designed to facilitate on-chain tokenization and compliance for institutions. Additionally, Injective Institutional Services became an SEC-registered transfer agent in August, positioning the platform for broader adoption. In Europe, Injective completed MiCA white paper notifications, paving the way for trading in the EU.

The supply squeeze narrative further supported the rally. Injective's Community BuyBack program burns tokens monthly, with September's round removing 25,200 INJ. Earlier Burn Auctions eliminated about 6.78 million INJ, roughly 7% of the supply. These deflationary mechanics, combined with ETF speculation, created a constrained liquid float, encouraging short-term positioning.

While the broader crypto market dipped slightly, INJ's 6.5% gain stood out, underscoring the impact of its specific catalysts. The price climbed from $7.67 to $8.18, with trading volume reaching $105.44 million. The move reflected a repricing of INJ as a higher-probability institutional DeFi and real-world asset (RWA) play.