DEX Aggregator wakes up from deep sleep with price jump

A massive spike in trading volume and a few whale trades give 1inch (1INCH) the biggest price gain of the day. Looking at the charts, the popular DEX aggregator is up almost 20 percent in 24 hours before going into reverse at the time of writing. However, looking at the week, 1INCH still recorded a remarkable increase of almost 60 percent. The token is again trading close to the psychologically important price line of $0.50.

The recent surge comes abruptly and may signal a longer-term recovery in DeFi’s most popular DEX aggregator. However, its triggers are not entirely obvious. At the beginning of June, 1INCH had made a new all-time low at 0.25. However, the project is generally benefiting from the recent resurgence of DeFi tokens from summer 2020. This month’s strong performers also include Compound (COMP), Aave (AAVE) or Synthetix (SNX).

Solid KPIs inspire confidence

The key performance indicators (KPIs) of the project form a further stable foundation, as from a current one Analysis by Messari is recognizable. 1inch continues to dominate the DEX aggregator market in the DeFi sector with 49 percent. The number of active users and stakers of the token also recorded a steady increase. Despite the bear market and the token’s sluggish price so far, the data paints a healthy picture of the platform.

1inch is still a popular DeFi protocol and could expand its role in the future. It enables users of decentralized exchanges to always find the most efficient way to trade crypto. To do this, the protocol aggregates data from the most popular DEXes, including Uniswap and Sushiswap. The project also has its own hardware wallet in the range.

South Korea wants 1INCH

A short squeeze and the massive increase in trading volume from Asia could also have caused the rapid increase. Around half of the trading volume comes from the South Korean crypto exchange Upbit. At around $340 billion in 24 hours, it’s 15 times the average over the past 30 days, according to data from Coingecko. About $2.5 million in short positions have also been liquidated since yesterday. As a result, traders who had bet against the price of the token had to buy back 1INCH, further driving the price higher.

Meanwhile show on-chain datathat insolvent crypto lender Celsius has started selling its altcoin holdings. Including 4.4 million 1INCH tokens, valued at $2.26 million. However, a crypto whale is said to have absorbed this relatively minor selling pressure with large purchases of almost 17 million 1INCH, data from Nansen shows. In October 2021, a high trading volume on Upbit triggered a rapid jump in the 1INCH price, but without any lasting effect. So it remains to be seen whether today’s trend reversal will manifest itself at 1inch.