In a wild cryptocurrency roller coaster ride, the native token of the decentralized exchange (DEX) aggregator, 1inch (1INCH), shot up by a staggering 58%. This bold jump happened before it started to simmer down on a Monday, marked by a record trading volume of $597 million, a high not witnessed since October 2021.
With the spike in trading volume, an extraordinary $3.37 million in leveraged 1inch short positions evaporated in the blink of an eye within 24 hours, CoinGlass reports. This volatility appears to ride the wave of Ripple’s recent courtroom victory against the Securities and Exchange Commission (SEC), setting a bullish trend that other assets like Solana (SOL), Cardano (ADA), and Polygon (MATIC) are following.
Trading Pairs & Future Markets: A Winning Combination?
The open interest, a metric indicating the total value of outstanding derivative contracts, saw a tremendous hike from $14 million to a whopping $125 million across 1-inch trading pairs, says Coinalyze. This surge implies that future markets are the driving force behind this rally.
However, this flurry of trading activity creates a delicate market equilibrium. The market depth, a measure of liquidity over a 2% spread, is fairly low compared to the trading volume. As of now, the buy-side market depth of 1 inch on Binance stands at $226,272, as per CoinMarketCap, enabling spot sellers to exploit the leveraged trading activity and potentially trigger a wave of long position liquidations.
The Mystery of the $3.7M Move
Adding mystery to this trading spectacle, an anonymous investor moved a hefty 7 million 1inch tokens (equivalent to $3.7 million) to Binance. The price dropped by 4.4% shortly after this transaction, as per blockchain detective LookOnChain. This move suggests the investor might be utilizing this specific trading strategy.
Despite this drop and Monday’s morning losses, 1-inch is still performing with a swagger. Currently trading at $0.505, it’s up by 23.8% in the past 24 hours. According to TradingView, between 9:00 am UTC on Sunday and 9:00 am UTC on Monday, 1-inch had an impressive 58.26% uptick.
