The Injective ecosystem is seeing a surge in on-chain activity even as its native token struggles to keep pace. Total value locked (TVL) on Injective has jumped about 14% in the past 24 hours, according to data from DeFiLlama, reflecting a wave of new inflows into the network. Yet, the INJ token itself has fallen roughly 8% over the same period, underscoring a sharp disconnect between ecosystem growth and market sentiment. The divergence comes just as Injective kicks off its new Community Buy-Back program, a mechanism designed to return value to participants and remove tokens from circulation. The buyback, which opened on Wednesday, allows community members to commit INJ to a pool that will be used to purchase and burn tokens, reducing overall supply. In return, participants receive a 10% yield from Injective’s ecosystem revenue. (Injective Buyback page/ Injective) On paper, this setup should be supportive for the token: rising TVL suggests growing activity and confidence in the ecosystem, while the buyback mechanism decreases supply. But the market appears to be taking a more cautious view. The loop seems to suggest users are buying INJ to qualify for the reward, staking to earn the yield, and then selling back into the market once it’s locked in. The result is rising on-chain activity, including inflows and staking metrics, but sustained sell pressure on the token itself. The dynamic highlights a deeper challenge for Injective. While the project was one of the breakout names in 2024, momentum has since cooled, with the INJ token price down 60% over the past year. The buyback is an ambitious attempt to reenergize the community and spark fresh engagement. Read more: Injective's INJ Year-to-Date Gain Rises to 3,000% After Latest Jump