Incoming Dump? History Spells Doom for 1INCH Ahead of Token Unlock

With 1INCH’s token unlocks set to happen yet again in 8 days, past data has spelled out that the crypto asset might dump further from the current dip. Analysis from on-chain data protocol OxScope shows that previous 1INCH token unlocks have led to at least an 8% price dip.

The analysis showed that each of the DeFi aggregator token unlocks led to a two-week price dump. The four unlocks 1inch has ever had led to a -52%, -49%, -30%, and -8.79% price drop, respectively.

Ranked 119 in the cryptocurrency hierarchy, 1inch has a maximum supply of 1.5 billion. The protocol has already unlocked 1.08 billion ($400 million) and has just 20% of its total supply, valued at $112 million, still locked.

1INCH to Unlock 0.001 of Total Supply

According to the protocol’s periodic unlock schedule, 1inch will release 21,429 of its token, valued at $7,908 at press time. The unlock quantity represents just 0.001 of its entire supply cap.

1inch unlocked $100 million worth of its token (16.65% of total supply) today; the token has already bottomed and is already more than 8% down today. Currently, 1inch is 96% off its all-time high of $7.874.

Holders should brace up for more volatility with the upcoming unlock on June 10. According to the analysis, the token is expected to continue its downtrend even before the next unlock in a few days.

In the Likeness of Optimism

1inch, just like Ethereum-based protocol Optimism, has seen massive downtrends after token unlock. Sequel to its $587 million OP token unlock, the asset slipped over 10% and is trading below $1.45.

Investors are usually weary of token unlocks as selling pressure precedes the event. Unlocks also dilute the trading volume and, subsequently, the asset’s price.