Daily 1-inch volume peaks at an all-time high, capping an otherwise tumultuous week. 1INCH Sees Return of Bullish Whale Demand, Containing Downside.
The crypto market took heavy losses last week, but the 1inch network managed to close it out with a huge win. The DeFi protocol revealed that it hit a new volume record on Sunday (March 12).
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According to the announcement, daily 1inch volume peaked just above $4 billion on Saturday. This is the highest daily volume the network has ever achieved in a single day. The protocol noted that the milestone is a sign of DeFi’s resilience, security and effectiveness.
— 1inch Network (@1inch) March 12, 2023
Part of the reason for 1inch’s feelings about the milestone and what it means for DeFi performance is last week’s stablecoin saga.
The previous major stablecoin depeg involving UST led to massive contagion and fear. The DeFi world experienced a slowdown in activity after that. The volume increase at 1 inch indicates a different and more favorable result.
Whales and institutions may have been behind the 1-inch volume increase
1inch’s 24-hour active addresses metrically recorded volumes within the normal range between March 10 and 11. Active addresses peaked at just over 600, a far cry from February’s peak of 9,509 active addresses.
The lack of strong address activity despite the large volume suggests a strong presence of whale or institutional activity. The supply of top addresses has indeed increased by a considerable margin despite last week’s market turmoil.
In addition, 1INCH’s MVRV ratio flipped on March 9, confirming inbound buying pressure.
Note that the increase in MVRV ratio occurred within the same time as the volume increase was observed. Soon after, we also saw a resurgence in speed, with the hub of speed metrics coming in on Saturday.
All the while, 1-inch network growth has flipped in favor of the downside.
One of the likely reasons why the network’s growth slowed, despite contrary observations in the other metrics, could be low retail activity. Anyway, the whale buildup was enough to soften 1INCH’s fall and cause a bit of a linchpin.
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In addition, 1INCH bounced back from a month-to-date low of $0.409 on Friday to a price of $0.451 at the time of writing thanks to a 9% rally.
Finally, the price action of 1INCH may be a bit more positive if the market continues to rise. On the other hand, the market is still in an anxious mode and it is still unclear whether the worst is over. This could explain the slow return of robust retail demand.
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