•1inch (1INCH) native token rose by 58% before receding on Monday.
•Trading volume hit $597 million, its highest level since October 2021.
•Open interest across 1inch trading pairs surged from $14 million to $125 million.
1inch Token Surges 58%
The native token of decentralized exchange (DEX) aggregator 1inch (1INCH) rose by more than 58% before receding on Monday as trading volume hit $597 million, its highest level since October, 2021. This rally appears to be continuing the uptrend that XRP set after it claimed a legal victory against the Securities and Exchange Commission (SEC) last week. XRP rose by 102% in one day, prompting further moves in assets like solana (SOL), cardano (ADA) and polygon (MATIC).
Daily Trading Volume Spikes to 20-Month High
Coupled with a spike in trading volume, $3.37 million in leveraged 1inch short positions have been liquidated over the past 24-hours, according to CoinGlass . Open interest across 1inch trading pairs has also surged from $14 million to $125 million during the move. Buy-side market depth of 1inch on Binance is currently $226,272 according to CoinMarketCap .
Investor Moves 3.7M To Binance
One particular 1inch investor appears to be deploying that trading strategy, with blockchain sleuth lookonchain noting that an investor sent 7 million tokens worth $3.7 million to Binance with price proceeding to fall by 4.4% in the following minutes.
Price of Token Recedes After Surge
1inch is currently trading at $0.505, it remains up by 23.8% in the past 24-hours despite losing some of its gains on Monday morning Between 9:00am UTC on Sunday and 9:00am UTC on Monday, 1inch was up 58.26%, according to TradingView .
Fragile Market Dynamics
Spot sellers can capitalize on the leveraged trading activity to prompt a cascade of long position liquidations creating a fragile market dynamic as market depth remains relatively low compared to trading volume