The 1inch token, the native token of the decentralized exchange (DEX) aggregator 1inch, has seen a significant rise of over 58%. This surge is accompanied by a notable increase in trading volume, reaching a 20-month high of $597 million.
1inch Token’s Impressive Rise and the Role of Trading Volume
The spike in trading volume and the liquidation of $3.37 million in leveraged 1inch short positions suggest a strong market interest in 1inch. While there’s no immediate news triggering this surge, 1inch’s rally seems to be part of a broader uptrend in the crypto market.
This trend was set off by XRP’s legal victory against the Securities and Exchange Commission (SEC) last week, which led to a 102% rise in XRP in a single day and influenced other assets like Solana (SOL), Cardano (ADA), and Polygon (MATIC).
The Role of Futures Markets in 1inch’s Rally
The open interest, a measure of the nominal amount of open derivatives positions, has risen from $14 million to $125 million across 1inch trading pairs. This suggests that the rally has been driven by futures markets, creating a fragile market dynamic as the market depth remains relatively low compared to trading volume.
The Future of 1inch: A Market Perspective
Despite some losses on Monday morning, 1inch remains up by 23.8% in the past 24 hours. An investor sent 7 million tokens worth $3.7 million to Binance, leading to a 4.4% price drop in the following minutes. However, 1inch continues to trade at $0.505, indicating a positive market sentiment.
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