In the past 24 hours, 1inch [1INCH] has managed to distance itself from its recent lows, driven by renewed enthusiasm surrounding Trump’s victory in the U.S elections. However, the question remains: will this upward momentum be sustained or is it just a temporary surge?
Struggling to break free from its bottom range since August, 1INCH had relinquished most of its gains accumulated over the past year. Nonetheless, the bulls made a fresh attempt, resulting in a 15% increase from the recent low.
Several major cryptocurrencies experienced notable gains in the last day, fueled by the excitement over Donald Trump’s election win. Notably, this rally initiated after 1INCH successfully tested a key support level at $0.22.
While the recent rebound confirmed the strength of this support level, the lingering question is whether this could trigger a significant rally. Interestingly, in September 2023, 1INCH witnessed a remarkable 200% surge after bouncing off the same support zone, accompanied by a period of consolidation.
1INCH On-Chain Data Reveals Mixed Signals
Despite the signs hinting at a potential rally, the performance of the 1Inch DeFi platform may not inspire confidence. Once a top DeFi platform, significant changes have occurred over the past three years.
For instance, the Total Value Locked (TVL), which once surpassed $2 billion, saw substantial outflows in 2021 and has struggled to recover since. Currently, the TVL stands at $4.5 million. Additionally, token liquidity faced a considerable decline from $48.79 million in November 2022 to below $5 million.
Furthermore, the on-chain volume of 1Inch has faced challenges in regaining momentum. Previously averaging above $100 million daily between January and May 2021, achieving similar figures has proven difficult in recent times.
Although sporadic spikes in on-chain volume surpassing $100 million occurred this year, including in September, it suggests a potential resurgence in demand if the market momentum strengthens.
Overall, the data indicates that 1inch has been operating well below its peak performance levels. This could be attributed to increased competition from newer and more efficient DeFi platforms.