This creates a fragile market dynamic as market depth, a metric used to assess liquidity over a 2% spread, remains relatively low compared to trading volume. Buy-side market depth of 1inch on Binance is currently $226,272, according to CoinMarketCap. Spot sellers can capitalize on the leveraged trading activity to prompt a cascade of long position liquidations.
Source: https://www.coindesk.com/business/2023/07/17/1inch-token-surges-58-as-daily-trading-volume-spikes-to-20-month-high-investor-moves-37m-to-binance/?utm_medium=referral&utm_source=rss&utm_campaign=headlines