INIT crypto is riding a wave of explosive momentum as price edges towards $1 fueled by 45,000% surge in volume

INIT crypto is riding a wave of explosive momentum as price edges towards $1 fueled by 45,000% surge in volume

Initia (INIT) price surged 36% in the past 24 hours as the crypto token edges towards $1. The price increase follows a massive 45,000% surge in trading volume.

The Initia price prediction is now dependent on whether the crypto token can break $1 and continue rallying. The crypto token is also set to be delisted from major exchange Gate.io later today.

The project launched yesterday after a 6-day farming period through staking USD Coin (USDC), Binance Coin (BNB), or FDUSD, where 3% of the total supply was allocated for rewards. The project also had 5% of its supply reserved for airdrops for early users and testers, with the latest airdrop still ongoing and set to conclude at 23:59 UTC today.

The project is now garnering massive momentum as evidenced by both price action and volume. According to Lookonchain, a trader went long on INIT about 16 hours ago with 2x leverage at an average price of $0.638 and is now sitting on an unrealized profit of over $630K.

Someone went long on $INIT 15 hours ago with 2x leverage at an average price of $0.638, and is now sitting on an unrealized profit of over $630K.https://t.co/ccUhvBNQK6 pic.twitter.com/NXgGFAecvS

— Lookonchain (@Lookonchain) August 9, 2024

Initia combines a Layer 1 chain with an interconnected system of customizable Layer 2 rollups, called Interwoven Rollups. This setup allows developers to launch their own app-specific chains with full-stack customizability, such as decentralized exchanges, yield aggregators, or gaming chains, while staying connected to the broader ecosystem.

The Initia L1 itself is built on the Cosmos SDK but uniquely integrates the MoveVM, enabling the use of Move smart contracts. Initia also tightly integrates foundational infrastructure like LayerZero for messaging and Celestia for data availability, along with built-in oracles, indexers, and native USDC support.

The project also has a unique Enshrined Liquidity mechanism designed to overcome the limitations of proof-of-stake and rollup networks—most notably, the trade-offs between security and liquidity. Typically, in most PoS networks, users must choose between staking their tokens to secure the network and earn rewards or using them to provide liquidity for trading. This creates a dilemma: more staking boosts chain security but limits the availability of assets for liquidity, and vice versa.

Initia’s founders recognized this trade-off and devised Enshrined Liquidity to merge these two critical functions. Their solution leverages a specialized variant of standard liquidity provider tokens, termed "LPx tokens," in conjunction with a modified economic model for validators.

With Enshrined Liquidity, liquidity positions on InitiaDEX, specifically in INIT-token pairs approved by governance, will double as staking assets with validators. In other words, users can stake their LPx tokens and still earn trading fees—a crucial income stream for liquidity providers—but they will also be directly contributing to the security of the Initia network and receive staking rewards. This seamless integration of liquidity and staking is a key innovation in the blockchain space.