Injective's EVM Testnet Launch: A Game Changer for DeFi

Unifying the VM Layer

On July 3, 2025, Injective officially launched its EVM testnet, a major milestone introducing the first consolidated virtual machine (VM) layer in the industry. Directly on Injective's Layer 1 blockchain, this invention allows Ethereum Virtual Machine (EVM) and WASM smart contracts to work flawlessly together. As a result, developers can now natively implement Ethereum-compatible decentralized applications (dApps) on Injective, hence eliminating the requirement for outside bridges or rollups. The native EVM integration employs the newest Geth client, which claims outstanding technical performance with about 800 light transactions per second and up to 320 heavy transactions per second, all while sustaining low latency and nearly-zero fees.

Ecosystem Impact and Market Reaction

Increased developer activity, new dApp releases, and better user engagement are all expected outcomes of this testnet launch that will have a major effect on the Injective ecosystem. Opening Injective to the vast Ethereum developer community unlocks advanced use cases in DeFi, artificial intelligence, and tokenization. With the INJ token seeing double-digit price rises and derivatives open interest reaching a 30-day high, indicating great optimism and increased trading activity, the market has reacted favorably to this development.

Technical Analysis of INJUSD

The INJ/USD pair has shown a minor pullback of over 30% following a significant sell-off. It peaked at $12.07 and is currently trading around $11.69, holding above key moving averages on the 4-hour chart.

Key Resistance and Support Levels

The near-term resistance level is identified at $12.25, and a breach above this could push the price to $14, $15.50, or even $17.4/$20. On the downside, immediate support is at $10, with potential targets lower at $9 and $8 if violated.

Market Indicators

The indicators based on the 4-hour chart show a bullish trend, with the CCI (14) and CCI (50) readings indicating bullish momentum, as well as a bullish average directional movement index.

Trading Recommendations

It is recommended to buy on dips around $10.90-$11, setting a stop-loss at $8 and targeting a price of $20.