- 1INCH Network token surged over 55% in a week, sparking speculations of the return of altcoin season.
- The rally was not triggered by any particular news but seems to follow the upward trend started by XRP after its legal victory against the SEC.
1INCH Stuns the Market with a Massive Week-long Leap
In an otherwise subdued crypto market, 1INCH, the native token of the 1INCH Network, has set the market abuzz. With an impressive overnight gain of 19% and a weekly surge of over 55%, 1INCH turned heads as the leading crypto market performer.
On Monday, the price of 1INCH ascended by a staggering 58%, taking its trading volume to an unprecedented $597 million – a record unmatched since October 2021. This rally also forced a closure of leveraged short bets worth $3.37 million within the past 24 hours, as per CoinGlass data.
Altcoin Rally Amid Bitcoin’s Sideways Trend
While Bitcoin largely fluctuated between $30,150 and $30,500, the rest of the crypto market remained relatively muted. However, 1INCH token’s price rose consistently over the past week, capping it off with a remarkable 42.3% increase. This trend line is indicative of what the altcoin bulls are presently attempting to surpass.
The burgeoning demand for 1INCH tokens triggered a nearly 400% spike in trading volume overnight. Despite Bitcoin’s lateral movement, the Correlation Coefficient (CC) indicator shows a 0.04 reduction, suggesting a weaker influence of Bitcoin on 1INCH. This independence from Bitcoin is possibly fueling investor optimism to drive up 1INCH’s value further.
Interestingly, the recent rally coincides with a significant uptick in trading volume in South Korea. Similar patterns were witnessed during the price increases of Bitcoin Cash (BCH) and Aptos (APT) over the previous fortnight.
Why Are the DeFi Bulls Charging?
While the 1INCH rally does not seem to be triggered by any specific news, it follows the upward trend that XRP began post its legal triumph over the SEC last week. Following XRP’s 102% leap, other digital assets, including Solana, Cardano, and Polygon, have also shown movement.
The open interest across 1INCH trading pairs, as reported by Coinalyze, escalated from $14 million to $125 million, indicating that the rally was likely backed by futures markets. Open interest is a term that denotes the nominal value of open derivatives contracts, signifying a robust support for the rally from futures markets.