- 1inch token witnesses a surge of 58% as trading volume hits $597 million, marking the highest level since October 2021.
- A mysterious investor transfers $3.7 million worth of 1inch tokens to Binance, causing a 4.4% dip in token price within minutes.
1inch, the native token of the decentralized exchange (DEX) aggregator, experienced a staggering 58% surge before retracting slightly this Monday. The trading volume simultaneously hit an impressive $597 million, the highest mark since October 2021.
Market Maneuvers Amplify 1inch’s Ascend
Complementing the spike in trading volume, there was a liquidation of $3.37 million in leveraged 1inch short positions within the last 24-hours, as per CoinGlass data. This dynamic shift, however, lacks an immediate news catalyst. It seems to echo the uptrend seen with XRP following its recent legal victory against the Securities and Exchange Commission (SEC). This verdict ignited XRP’s value, resulting in a 102% one-day surge, stimulating further activity in assets such as Solana (SOL), Cardano (ADA), and Polygon (MATIC).
Open interest, the nominal amount of open derivatives positions, swelled from $14 million to an astounding $125 million across 1inch trading pairs. This data, provided by Coinalyze, implies that the rally was primarily fueled by futures markets. However, this brings a certain fragility to the market dynamics.
Market depth, which gauges liquidity over a 2% spread, remains relatively low compared to trading volume. According to CoinMarketCap, buy-side market depth of 1inch on Binance currently stands at $226,272. This could enable spot sellers to take advantage of the leveraged trading activity and trigger a cascade of long position liquidations.
Lookonchain, the blockchain investigative entity, noted an interesting maneuver by an anonymous 1inch investor. This investor transferred 7 million tokens, valued at $3.7 million, to Binance, leading to a 4.4% decline in the token’s price within minutes.
Despite the losses on Monday morning, 1inch still trades at $0.505, remaining up by 23.8% in the past 24 hours. As per TradingView, between 9:00 am UTC on Sunday and 9:00 am UTC on Monday, 1inch was up by an impressive 58.26%.