Over the past 24 hours, 1inch [1INCH] has widened the gap from its recent bearish phase, driven by renewed optimism surrounding the U.S. election outcome. The question now arises: will this uptrend continue or is it just a transient bounce?
Since August, 1INCH has been grappling to break free from its lower price range and had relinquished most of its 12-month gains. However, recent bullish attempts led to a 15% surge from the recent lows, hinting at a potential shift in market sentiment.
Many prominent cryptocurrencies observed substantial upward movement in the wake of speculations tied to the U.S. election results, with 1INCH rallying after testing a key support level around the $0.22 mark.
The current rebound confirmed the strength of this support level, but the crucial question remains: will it translate into a sustained rally this time around? It is noteworthy that in September 2023, 1INCH witnessed a remarkable 200% rally following a similar bounce from support, signaling a bullish potential.
During that period, the token also exhibited consolidation patterns, indicating potential accumulation by investors.
Assessment of 1INCH On-Chain Data
While the token shows promise of a potential upsurge, insights from the 1Inch DeFi platform reveal a different narrative in terms of performance. Despite formerly being a leading DeFi platform, significant transformations have impacted its standing over the last three years.
For instance, the Total Value Locked (TVL), previously exceeding $2 billion, witnessed substantial outflows in 2021 and has struggled to regain stability since. Presently, 1inch boasts a TVL of $4.5 million. Additionally, token liquidity faced considerable setbacks in 2023.
Token liquidity, which once peaked at $48.79 million in November 2022, plummeted to under $5 million in subsequent periods.
On-chain transaction volume of 1Inch has also faced challenges in resurrection. Whereas the network previously recorded average daily volumes surpassing $100 million between January and May 2021, achieving similar figures has become increasingly arduous.
There were sporadic spikes in on-chain volume exceeding $100 million earlier this year, including a notable surge in September, hinting at latent demand that could potentially resurface during a market-wide rally.
Nevertheless, data conveys that 1inch is currently operating far below its historical performance peaks, potentially due to heightened competition from newer and more efficient DeFi platforms.