The native token of DEX aggregator 1inch (1INCH) experienced a remarkable surge, climbing by over 58% in value, while daily trading volume reached its highest level since October 2021.
The surge in trading activity coincided with the liquidation of $3.37 million in leveraged 1inch short positions over the past 24 hours.
While there is no specific news catalyst for the surge, it appears to be part of an ongoing uptrend following XRP’s recent legal victory against the SEC. The rally in 1inch mirrors the movements observed in other assets like Solana (SOL), Cardano (ADA), and Polygon (MATIC).
The rally in 1inch has been accompanied by a significant increase in open interest, which measures the nominal amount of open derivatives positions.
According to Coinalyze, the open interest across 1inch trading pairs has surged from $14 million to $125 million. This suggests that the rally may have been driven by futures markets, adding to the market dynamics and potentially increasing fragility.
Despite the surge in trading volume, market depth, which assesses liquidity over a 2% spread, remains relatively low compared to the trading volume.
Notably, a specific investor engaged in a trading strategy by transferring 7 million tokens worth $3.7 million to Binance.
Following this transfer, the price of 1inch fell by 4.4% within minutes. This activity highlights the potential impact of investor actions on the token’s price movements.
As of now, 1inch is trading at $0.505, representing a 23.8% increase in the past 24 hours, although it has experienced a slight decline from its recent gains.
