In a wild cryptocurrency rollercoaster ride, the decentralized exchange (DEX) aggregator’s native token, 1inch (1INCH), skyrocketed by a whopping 58%. This bold jump came before it began to simmer on a Monday marked by a record trading volume of $597 million, a high not seen since October 2021.
With the spike in trading volume, an extraordinary $3.37 million in leveraged 1-inch short positions evaporated in an instant within 24 hours, CoinGlass reports. This volatility appears to be fueling the wave of Ripple’s recent courtroom victory against the Securities and Exchange Commission (SEC), setting a bullish trend that other assets such as Solana (SOL), Cardano (ADA), and Polygon (MATIC) are following.
Trading Pairs & Future Markets: a winning combination?
Open interest, a measure that indicates the total value of outstanding derivative contracts, saw a huge increase from $14 million to a whopping $125 million across 1-inch trading pairs, Coinalyze says. This increase implies future markets are driving this rally.
However, this flurry of trading activity creates a delicate market balance. Market depth, a measure of liquidity over a 2% spread, is quite low compared to trading volume. As of now, the 1-inch buy-side market depth on Binance stands at $226,272, according to CoinMarketCap, allowing spot sellers to leverage the trading activity with leverage and potentially sparking a wave of long position liquidations.
The mystery of the $3.7 million move
To add mystery to this trading spectacle, an anonymous investor moved a hefty 7 million 1inch tokens (equivalent to $3.7 million) to Binance. The price fell 4.4% shortly after this transaction, according to blockchain detective LookOnChain. This step suggests that the investor may be using this particular trading strategy.
Despite this drop and Monday morning’s losses, 1-inch is still performing with a swagger. It is currently trading at $0.505 and is up 23.8% in the last 24 hours. According to TradingView, 1-inch had an impressive 58.26% gain between 9am UTC on Sunday and 9am UTC on Monday.