Validators process transactions and receive transactions fees (supply-side fees).

Injective is a smart contract platform for decentralized finance applications (a blockchain) and an orderbook exchange protocol. Injective was founded by Eric Chen, Albert Chon etc. and launched in 2020. Note that this dashboard only tracks Injective's blockchain business.

INJ holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue) via Burn Auctions. Injective's investors include Binance, Jump Crypto, Mark Cuban, etc.

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Injective

# Injective P/S ratio (circulating) Methodology

## 1. Overview

P/S ratio (circulating) measures the circulating market capitalization of Injective relative to its annualized protocol revenue. This metric serves as a valuation multiple that indicates how the market values the network compared to the revenue captured and burned by the protocol. Revenue for Injective is generated through two primary mechanisms: the exchange fee burn auctions on Injective Cosmos and the base gas fee burn on Injective EVM.

## 2. Data sources

- **Blockchain events**: `burn` events from block records and transaction-level gas data, covering Injective Cosmos and Injective EVM.
- **External data**: End-of-day price feeds for the native INJ asset and asset metadata for circulating supply.

## 3. Step-by-step calculation

### Component A: Injective Cosmos revenue extraction

- **Purpose**: Captures revenue generated through the automated auction-based burn mechanism on Injective Cosmos.
- **Logic**: `burn` events are parsed from block-level event records. Revenue is identified by filtering for events where the burner attribute matches the specific auction module address (`inj1j4yzhgjm00ch3h0p9kel7g8sp6g045qf32pzlj`). The associated asset amounts are extracted from event attributes, normalized by decimal precision, and aggregated daily.
- **Key fields**: `amount`, `burner`, `event_type`.

### Component B: Injective EVM revenue extraction

- **Purpose**: Captures protocol revenue from gas burning on the Injective EVM layer.
- **Logic**: Revenue is derived using the EIP-1559 gas pricing model. For every transaction, the base fee is calculated by multiplying the gas used by the block's base fee per gas. This portion is burned by the protocol and classified as revenue. Priority fees are excluded from this calculation as they are allocated to validators as supply-side fees.
- **Key fields**: `gas_used`, `base_fee_per_gas`, `effective_gas_price`.

### Component C: USD conversion and daily aggregation

- **Purpose**: Normalizes revenue components into a single currency for valuation analysis.
- **Logic**: Daily revenue values from Injective Cosmos and Injective EVM are summed. These native asset amounts are multiplied by end-of-day price feeds to determine the USD value. Daily totals are calculated using UTC day boundaries.

### Component D: Annualization and P/S ratio calculation

- **Purpose**: Produces the final valuation multiple relative to circulating supply.
- **Logic**: Daily protocol revenue is annualized by calculating a 30-day moving average and multiplying the result by 365. The P/S ratio (circulating) is then calculated by dividing the daily circulating market capitalization by this annualized revenue figure. Values are zero-filled for days where no revenue data is present.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

${market_cap_circulating} / (rolling_avg(${revenue}, 30) * 365)

Circulating market cap relative to annualized revenue.

InjectiveINJ

P/S ratio (circulating)

P/S ratio (circulating)

Competitive landscape