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Why Are Major Players Accumulating Assets Following 1inch Investment Fund’s $10 Million Purchase of Ethereum (ETH)?
As reported by Lookonchain, a blockchain analytics platform, on August 28, a cryptocurrency wallet associated with 1inch Investment Fund, identified as “0x225d3822de44e58ee935440e0c0b829c4232086e”, acquired 6,088 Ether (ETH) at a price of $1,655, totaling an expenditure of $10 million for the transaction.
This fund is linked to 1inch Network, a decentralized exchange (DEX) aggregation protocol and one of the leading platforms in terms of total value locked (TVL). The 1inch Investment Fund has not disclosed the rationale behind their decision to buy Ethereum during a period when prices seem to be declining following losses experienced about ten days prior. ETH, similar to Bitcoin and the wider cryptocurrency market, experienced a drop on August 17. ETH decreased by over 15%, falling from around $1,800, and has not yet regained those levels in current pricing.
On August 28, the candlestick pattern for ETH indicates that the asset remains in a narrow consolidation phase, moving sideways and confined within the bearish candlestick from August 17. Prices are relatively stable, with diminished trading volumes, yet the formation suggests a bearish trend.
At the time of this report, Ethereum is trading at approximately $1,650, slightly below the price at which the fund acquired the token earlier that day.
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While the actions of the 1inch Investment Fund may appear overly optimistic for ETH, they have not yet stimulated demand or pushed the coin out of its current consolidation phase. The coin is trending lower, and the path of least resistance continues to indicate a downward trajectory. The significant bearish candlestick could influence medium-term trends unless demand increases, pushing Ethereum above $1,900.
Lookonchain has previously documented several transactions involving the fund. For instance, the tracker reveals that the 1inch Investment acquired 17,000 ETH valued at $26.8 million on multiple occasions during Q1 2023.
At that time, the average purchase price was $1,569. They subsequently sold 11,000 ETH at $1,906 for $21 million, resulting in a profit of $3.7 million. The 1inch Investment Fund currently holds 9,453 ETH valued at $15.61 million based on current exchange rates.
As per Etherscan, the 1inch Investment Fund holds approximately 23 tokens in addition to ETH. As of August 28, one of their primary assets was USDT, valued at over $31.75 million. USDT is recognized as the most liquid stablecoin globally.
Additionally, they have a significant stake in Uniswap’s governance token, UNI, valued at more than $1.85 million, but only a minor holding of USDC, worth $52. According to data from Debank, the fund’s total digital asset holdings amount to $80.3 million.
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