In a surprising move on the 28th of August, the 1inch Investment Fund made a substantial purchase of Ethereum (ETH) coins valued at $10 million. Despite the magnitude of this investment, it did not significantly influence the price of 1INCH, which remained relatively steady. The investment fund secured over 6,000 ETH coins, a discovery made by onchain analyst Lookonchain. However, this substantial investment didn’t seem to shake the 1INCH market, with the price remaining fairly stable.
Details of the Transaction
A closer examination of the transaction revealed that prior to the purchase, a cryptocurrency wallet linked to the DEX aggregator’s Investment Fund had withdrawn cryptocurrencies worth $48.73 million from Uniswap [UNI]. The withdrawn assets comprised 41.8 million Tether [USDT], 396,000 UNI, 75,000 USD Coin [USDC], and 3,120 ETH. The fund then proceeded to invest $10 million in buying 6,060 ETH at an average price of $1650.
Current Holdings of the Investment Fund
As per data from ScopeScan, the fund’s wallet currently holds 9,453 ETH, 31.79 million USDT, 396,356 UNI, 52.18 USDC, and 500 Galxe [GAL]. Despite the magnitude of the purchase, it did not significantly influence the price of 1INCH.
Market Reaction to 1INCH’s $48 million withdrawal
While one might expect such a significant event to influence 1INCH’s price direction, the market remained flat. The price of the 1INCH token was $0.2447, marking a minor 1% growth over the last 24 hours. The past month saw the price of 1INCH trend downwards due to increased sell-offs. The price dropped by nearly 25% from $0.31 on 29th July. Data from Santiment revealed an increase in 1INCH’s supply of cryptocurrency exchanges between 31st July and 15th August, indicating an increased 1INCH distribution. During this period, the Market Value to Realized Value (MVRV) ratio was negative, suggesting that 1INCH was undervalued.
Despite the slowed sell-offs in recent weeks and a decrease in exchange reserves, accumulation has also slowed down. Key momentum indicators on the daily chart were leaning towards oversold zones, with 1INCH’s Relative Strength Index (RSI) and Money Flow Index (MFI) standing at 33.66 and 39.46 respectively at the time of writing. The decreased trading volume and lack of new tokens being accumulated suggest a cautious approach from investors.
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