The cryptocurrency market often moves in mysterious ways—while Bitcoin remains range-bound around the $30,000 mark, smaller-cap tokens occasionally break out with explosive momentum. One such surprise rally occurred recently with **$1INCH**, the native token of the 1inch Network, a leading decentralized exchange (DEX) aggregator. On July 17, $1INCH surged over **50% in a single day**, peaking at $0.5935—the highest level in three months—before retracing to around $0.39.
What caused this sudden spike? Was it pure speculation, or were there underlying fundamentals at play? Analysts and on-chain data point to two major catalysts driving the rally: intense trading activity on South Korean exchanges and a surge in on-chain user engagement and whale interest.
The South Korean Exchange Effect: Upbit’s Role in the 1INCH Rally
One of the most immediate triggers behind the price surge was an unusual spike in trading volume on South Korea’s Upbit, the country’s largest cryptocurrency exchange.
According to data from CoinGecko, $1INCH ranked as the **second most-traded cryptocurrency** on Upbit over a 24-hour period, with trading volume reaching a staggering **$360 million**. This level of activity is highly unusual for a mid-cap DeFi token and signals strong regional demand.
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South Korean traders have long been known for their influence on global crypto prices, often driving short-term pumps due to localized trading behavior, capital inflows, and speculative sentiment. The sudden demand for $1INCH on Upbit suggests possible accumulation by a large, unidentified entity—or "whale"—which can distort prices on relatively less liquid assets.
However, this rally wasn’t without volatility. As prices spiked, so did liquidations. Over $4.28 million in futures contracts were liquidated** within 24 hours, with **$2.68 million in long positions (bets on price increases) and $1.6 million in short positions (bets on price declines) wiped out. This indicates a highly leveraged and reactive market environment.
Meanwhile, on-chain analysis from Nansen revealed another key factor: the movement of $1INCH from the bankrupt crypto lending platform Celsius.
Despite Celsius being under court-supervised asset liquidation, approximately $2.44 million worth of $1INCH was transferred out of its wallet on July 14, shortly before the price rally began. These tokens were reportedly sold for Bitcoin and Ethereum as part of approved asset disposals. Simultaneously, large sell orders appeared on Binance, further contributing to market volatility.
These coordinated movements—large-scale selling from distressed entities and aggressive buying on regional exchanges—created a perfect storm of supply shock and demand surge, pushing $1INCH into the spotlight.
On-Chain Fundamentals: Rising User Activity and Whale Interest
While exchange dynamics provided the spark, underlying fundamentals helped fuel the fire.
According to analytics platform Santiment, the number of daily active addresses on the 1inch Network surged by 264% between July 9 and July 17. This spike in user activity closely correlated with the token’s price increase—over the same period, $1INCH gained nearly 90%.
A growing number of active users typically signals increased usage of the protocol—whether for swapping tokens, providing liquidity, or participating in governance. For a DEX aggregator like 1inch, higher traffic means more transaction fees, better liquidity, and stronger network effects—all positive signs for long-term value accrual.
But users aren’t the only ones showing interest.
Data from IntoTheBlock shows a significant rise in whale activity. On July 12, large institutional investors—defined as those conducting daily transactions exceeding $100,000**—executed just **8 transactions** involving $1INCH. By July 16, that number had jumped to 50 transactions**, indicating growing institutional or high-net-worth interest.
This kind of whale accumulation often precedes broader market moves. When large players start building positions, it can signal confidence in a project’s future—or anticipation of upcoming developments.
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Market Outlook: Support Levels and Resistance Zones
As the dust settles, technical analysts are watching key levels for signs of continuation or reversal.
Analyst Brahim Ajibade noted that after the sharp rally, whales began taking profits—leading to the pullback from $0.59 to around $0.39. However, he identified a critical support zone near $0.43**, where approximately **2,420 investors hold 56 million $1INCH tokens.
If this support holds, it could serve as a springboard for another attempt at breaking resistance near **$0.60**. Conversely, a breakdown below $0.43 might trigger further selling pressure.
Frequently Asked Questions (FAQ)
Q: What is 1INCH and what does it do?
A: 1INCH is the native token of the 1inch Network, a decentralized exchange (DEX) aggregator that sources liquidity from multiple platforms to offer users the best possible swap rates across blockchains.
Q: Why did $1INCH suddenly spike in July 2025?
A: The surge was driven by heavy trading volume on South Korea’s Upbit exchange and increased on-chain activity, including rising daily users and whale transactions.
Q: Is the Celsius Network selling affecting $1INCH’s price?
A: Yes. The sale of $2.44 million in $1INCH from Celsius’ wallet added selling pressure, contributing to volatility during an already sensitive price movement phase.
Q: How many active users does 1inch Network have?
A: Daily active addresses rose by 264% in early July 2025, indicating strong growth in protocol usage during that period.
Q: Can $1INCH reach $0.60 again?
A: Technically possible—if support at $0.43 holds and positive sentiment returns. Whale activity and exchange volume will be key indicators.
Q: Where can I trade $1INCH securely?
A: Major exchanges with deep liquidity and strong security protocols support $1INCH trading pairs.
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Final Thoughts: A Confluence of Hype and Fundamentals
The recent 50% surge in $1INCH wasn’t just random noise—it was a confluence of regional market dynamics, on-chain fundamentals, and macro-level crypto sentiment.
While short-term pumps driven by exchange-specific demand can be fleeting, the simultaneous rise in user engagement, whale accumulation, and protocol activity suggests that 1inch may be regaining relevance in the DeFi ecosystem.
For investors, the key takeaway is to look beyond headlines and price charts. Real value often lies beneath the surface—in wallet flows, user metrics, and network health.
As the broader crypto market watches Bitcoin’s next move, tokens like $1INCH remind us that innovation—and opportunity—still thrives in the decentralized corners of Web3.
Core Keywords: 1INCH price surge, DeFi token rally, 1inch Network, whale activity, South Korea crypto trading, DEX aggregator, on-chain analytics