The 1inch Investment Fund is an asset manager affiliated with the 1inch Network, a popular decentralized exchange (DEX) aggregating protocol, and it’s the latest to join the Ethereum (ETH) accumulation spree. According to Lookonchain, an on-chain analytics platform, the crypto wallet linked with 1inch Investment Fund made a significant purchase on August 28.
The address purchased 6,088 Ether (ETH) for $1,655 per unit for a total cost of $10 million.
Accumulating Ether Amid Price Fluctuation
The recent purchase of Ether by the 1inch Investment Fund has caught the attention of many industry observers because the firm has yet to provide precise details behind its motives. This move comes amid a period of market turmoil that began ten days ago, during which ETH, Bitcoin and the broader crypto market experienced a significant price decline.
During this period, the value of ETH fell by about 15%, causing it to drop sharply from around $1,800. Based on the current spot rates, the asset has yet to reclaim those levels.
The ETH candlestick pattern as of August 28 reveals a distinct outline of the cryptocurrency’s market behavior. Ethereum remains in a tight consolidation phase at the time of writing, as evidenced by horizontal movement within the confines of the bearish candlestick observed on August 17.
Despite this consolidation, price movements have been relatively stable, indicating a modest balance between buying and selling pressures. It is worth noting that trading volumes declined during this consolidation period, signifying a cautious market sentiment among investors.
Furthermore, the move by the investment fund, while bullish for ETH, has yet to spark the anticipated surge in demand that would drive the coin out of its current consolidation phase.
Despite the optimism surrounding the latest purchase, Ethereum’s price continues to fall, emphasizing its struggles in breaking free from its current price range.
1Inch Investment’s Ether Buying Spree
Previously, Lookonchain has drawn the attention of many to a series of transactions linked to the investment fund. Notably, the crypto tracking platform revealed that the fund made a series of acquisitions, amassing 17,000 Ether on separate dates in the first quarter of 2023.
According to Lookonchain, the total value of these acquisitions was approximately $26.8 million. Moreover, the 1inch Investment Fund’s existing balance is approximately 9,453 ETH on its portfolio.
This holding is worth $15.61 million at current market spot rates. Meanwhile, these figures provide an overview of the fund’s ongoing exploration of the cryptocurrency market, highlighting its investment strategy and the potential gains realized through carefully executed transactions.
As the cryptocurrency landscape evolves, observers believe that institutional firms and asset managers such as the 1inch Investment Fund will continue to play an essential role in shaping market dynamics and influencing investor sentiment. In addition to its Ether accumulation, 1inch Investment Fund has strategically diversified its portfolio by holding more than 23 other tokens, as revealed by Etherscan data.
The firm’s purchase of other digital assets shows its diversification strategy involves holding other cryptos besides ETH. As of August 28, one of the most valuable assets in the company’s portfolio was Tether (USDT), which has a market valuation of over $31.75 million.
USDT is one of the most widely used stablecoins on the market. Its popularity stems from its status as a liquid stablecoin, unlimited use cases, and being pegged at a consistent value to the USD. A further breakdown of the 1inch Investment Fund’s diverse holdings reveals that the firm owns substantial volumes of UNI, UniSwap’s native token.
According to on-chain data, the fund owns a significant amount of UNI tokens worth over $1.85 million. It remains to be seen which institutional investor will join the ETH acquisition spree.
Meanwhile, ETH trades at $1,644 at the time of writing, with a 0.2% decline in the past hour and a 0.6% rise over the last 24 hours.
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