Injective [INJ], the native token of its namesake's layer 1 blockchain, surged to a record high of $39.15 on Tuesday to complete a 3,000% move to the upside over the course of 2023.

The token has risen by 28% in past 24-hours alone, with traders anticipating a wider altcoin rally following Solana's recent hype-fueled growth.

Injective is a Cosmos-based blockchain that combines elements of artificial intelligence (AI) with decentralized finance (DeFi). It currently has just $18 million in total value locked, according to DefiLlama, although the token has experienced $600 million in trading volume in the past 24-hours.

Decentralized applications (dApps) built on Injective can use AI algorithms to improve market efficiency and optimize decisions for users, for example trades on decentralized exchanges. Injective also describes itself as the first blockchain to offer "auto-executing smart contracts," which aims to increase efficiency.

The lack value capture on the Injective blockchain coupled with the hike in token prices suggests that traders are buying into the artificial intelligence narrative, which has also driven assets like fetch.ai [FET] and the graph [GRT] over the past few months.

The rise can also be attributed to an emerging trend of airdrop farmers who hop from blockchain to blockchain hoping to scoop up freshly-minted token airdrops. One X user explained how there are "many projects built on top [of Injective] that have confirmed an airdrop."

Injective Injective Labs layer 1 AI

Oliver Knight

Oliver Knight joined CoinDesk as a news reporter in April 2022. Before joining CoinDesk, Knight was the Chief Reporter at Coin Rivet for three years. Having graduated with a journalism degree from Birmingham City University, Knight went on to work at various sports publications before diving into the world of Bitcoin in 2014. He does not have any crypto holdings.