Today in Crypto: Injective holders backed changes to the network’s economic model that will curb new token supply while preserving its buyback-and-burn mechanism. Meanwhile, Bitcoin drew the bulk of capital moving into crypto funds last week, but prices came under pressure as European officials considers firing a “trade bazooka” at the US.
Injective community passes governance vote to slash INJ token supply
Injective’s protocol community approved a major tokenomics overhaul on Monday, passing a governance proposal with 99.89% support based on staked voting power.
Injective is a layer-1 blockchain focused on decentralized finance applications, with INJ (INJ) serving as its native token for staking, governance and transaction fees.
The Supply Squeeze proposal (IIP-617) reduces its native token issuance and maintains the network’s buyback-and-burn program, which uses protocol-generated revenue to permanently remove tokens from circulation.
The network said it has removed about 6.85 million INJ from circulation through token burns. The proposal is designed to accelerate tokens removal by aligning reduced issuance with recurring buybacks.
According to an X post from Injective on Monday, the governance changes, which are live, will enable “INJ to become one of the most deflationary assets over time.”
The governance vote follows a prolonged downturn in INJ’s market price amid a broader altcoin sell-off. Over the past year, INJ has fallen nearly 80% and is down more than 90% from its all-time high achieved in March 2024. The token was down about 8% on Monday, according to CoinGecko data.
Community reaction on X after the vote was mostly optimistic, with users framing it as a structural shift rather than a short-term market catalyst.
According to DefiLlama data, at time of writing Injective had $18.67 million in total value locked (TVL) across its DeFi ecosystem, down sharply from peaks above $60 million in 2024.
Crypto ETPs gather steam with $2.2 billion inflows, Bitcoin dominates
Crypto investment products continued gathering steam last week, with fund inflows outpacing every other week in 2026 so far and marking the largest gains since October.
Crypto exchange-traded products (ETPs) drew $2.17 billion of inflows last week, European crypto asset manager CoinShares reported on Monday.
The bulk of inflows came earlier in the week, but Friday saw sentiment shift as $378 million in outflows amid Greenland geopolitical escalation and fresh tariff worries, CoinShares’ head of research, James Butterfill, said.
“Sentiment was also weighed down by suggestions that Kevin Hassett, a leading contender for the next US Fed Chair and a well-known policy dove, is likely to remain in his current role,” the analyst added.
Most of last week’s crypto fund gains were concentrated in Bitcoin (BTC), which attracted $1.55 billion of inflows, or more than 71% of the total weekly haul.
Ether (ETH) funds drew $496 million in inflows, while XRP (XRP) and Solana (SOL) funds followed, pulling in roughly $70 million and $46 million, respectively. Smaller altcoins such as Sui (SUI) and Hedera (HBAR) recorded inflows of $5.7 million and $2.6 million.
Bitcoin down, gold futures up as Europe threatens “trade bazooka”
Bitcoin fell almost $3,500 on Monday as Europe hinted at retaliatory measures against US President Donald Trump, who threatened new trade tariffs unless negotiations could begin over Greenland.
Over the weekend, Trump announced plans to impose 10% tariffs starting Feb. 1 on imports from several European countries — including Denmark, Sweden, France, Germany, the Netherlands and Finland — as part of a broader escalation tied to Greenland tensions.
The rate could rise to 25% by June if no agreement is reached.
The European Union is preparing its own potential response, including up to €93 billion in previously delayed retaliatory tariffs and the possible use of its Anti-Coercion Instrument (“trade bazooka”) should the US duties go ahead.
Bitcoin prices dumped 3.6% in a matter of hours, falling from $95,450 to just below $92,000 on Coinbase in early trading on Monday morning, according to TradingView.
Around $750 million in long positions were liquidated in four hours, bringing total 24-hour liquidations to over $860 million, according to Coinglass. The asset had marginally recovered from its weekly low, trading at $92,580 at the time of writing.
