The altcoin market continues to suffer, negatively impacting liquidity.
Accordingly, altcoin liquidity remains at very low levels, and this weak altcoin liquidity caused 1INCH, listed on Binance, to drop by 7% with a sell order of less than $2 million.
According to an analysis shared by Chinese crypto analyst EmberCN on their X account, liquidity in the altcoin market has seriously deteriorated. The analyst noted that 1INCH, considered a significant altcoin with a market capitalization of approximately $180 million, fell by 7% after a single sell order exceeding $2 million.
EmberCN also pointed out the low trading volume of 1INCH, specifically highlighting that the 24-hour trading volume of the 1INCH/USDT pair on Binance was only $1.5 million.
It was stated that $1.16 million of this total transaction volume originated from arbitrage bots, while the actual liquidity remained around $340,000.
EmberCN also noted that “contrary to the apparent trading volume, the actual buying and selling base is extremely weak,” and that a liquidity gap is currently widening in the altcoin market.
*This is not investment advice.
