The 1INCH price action has seen a roller coaster ride in the past few months, rising from under $ 2 to $ 4.50, then a giant green candle hit an all-time high (ATH) of $ 7.70 before hitting 1, $ 99 fell.

1INCH price chart | Source: Tradingview

After a logical division into highs and lows, 1INCH appears to have caught up with the market trend with a gain of almost 20% in the past four days. Part of the price rally could be attributed to recent ecosystem-oriented developments.

The development continues to maintain the bullish trend

At press time, IntoTheBlock data shows stronger sentiment for 1INCH, which is largely bullish after the recent rally. However, the Global In / Out of the Money indicator shows that only 25% of the holders are profitable at the current price of $ 2.80.

Source: IntoTheBlock

One reason for the 1INCH increase is the platform’s recently launched V2 limit order protocol, which claims to increase token utility. In addition, 1inch passed the 1 million user mark on the Ethereum blockchain earlier this week, which is a significant milestone for the network.

Earlier this month, 1inch raised $ 175 million in its most recent funding round, while the 1INCH token reached a total trading volume of $ 110 billion.

The weekly trading volume of 1 inch on ETH Layer-1 has increased 50% since February, from $ 2 billion to $ 3 billion as the entire DEX market grows. In the past few months, 1inch-backed ETH token swaps have contributed to the increase in 1INCH’s on-chain activity.

So ideally, with prices rising with high social media traffic, on-chain activity and network growth should also be high, but the metrics suggest something completely different.

The network seems weak?

While the price of 1INCH has increased nearly 20% in the past four days, at the time of writing only 19.19,000 addresses, or 25.06%, are profitable. Additionally, there is an anomaly in network growth as active addresses and daily transaction volume are at an all-time low at press time.

Source: Sanbase

The lack of participation and activity in the network manifests itself in the speed of network growth and weak daily active addresses.

One reason for the low activity and stagnation of 1INCH could be the absence of holders. There are very few holders and the average holding period of 1INCH is only 2.1 months.

Despite the sharp increase in trading volume in recent months, the low level of participation by private investors additionally hampered the price increase.

Source: IntoTheBlock

With no retail and owner support, 1INCH doesn’t seem to have done as well over the past few months. While there are ecosystem-related market developments that appear to pave the way for long-term growth, the short-term prospects don’t look too good.

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