The cryptocurrency world is abuzz with the latest on-chain activity from the 1inch team, as fresh data reveals a strategic shift in their treasury management. In a move that could signal growing confidence in their native token, the 1inch team fund has reportedly sold a portion of its Wrapped Bitcoin (WBTC) holdings and reinvested over $1 million into 1INCH tokens. This article dives deep into the transaction details, market implications, technical outlook, and what it means for investors navigating the evolving DeFi landscape.
Major 1INCH Buyback Sparks Market Interest
Recent blockchain analytics from DeBank show that the 1inch team fund executed a significant transaction on April 25, 2025, selling an undisclosed amount of WBTC. While the exact sale price and volume remain unconfirmed, the proceeds were swiftly redeployed. Over the next 36 hours—starting April 26 at 10:00 UTC—the fund placed a series of limit orders to accumulate 5,498,000 1INCH tokens at an average price of $0.199 per token, totaling $1.094 million in USDC.
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This purchase represents approximately 0.5% of 1INCH’s total circulating supply of 1.25 billion tokens, according to CoinGecko. Given the token’s relatively low 24-hour trading volume of $18.7 million at the time (CoinMarketCap), such a concentrated buy-in may have a noticeable impact on short-term price dynamics, potentially stabilizing sentiment during a broader market consolidation phase.
Strategic Implications Behind the Token Acquisition
Why would a project team sell a major asset like WBTC to buy back its own token? There are several plausible explanations:
- Confidence in Valuation: The move may reflect internal belief that 1INCH is undervalued at current levels.
- Supply Management: Reducing circulating supply can support price stability and long-term growth.
- Market Sentiment Influence: Large institutional-style purchases often serve as psychological support for retail investors.
During the accumulation window, trading activity surged on Binance’s 1INCH/USDT pair, with buy orders clustering between $0.198 and $0.200. This coincided with a 12% increase in 24-hour trading volume, reaching $6.3 million by April 27 at 14:00 UTC. Simultaneously, active wallet addresses holding 1INCH rose by 8% over three days to 42,300, per Etherscan data—indicating stronger user engagement and network vitality.
How Broader Market Conditions Are Shaping 1INCH’s Trajectory
At the time of analysis, Bitcoin was trading around $62,400 and Ethereum at $3,100 (CoinMarketCap, April 27, 2025), suggesting a sideways market phase across major assets. In this context, DeFi tokens like 1INCH often mirror broader altcoin trends. Notably, 1INCH maintains a high correlation of 0.82 with ETH (CryptoCompare), meaning Ethereum’s price action remains a key driver for its performance.
With total value locked (TVL) in decentralized finance holding steady at $92 billion (DeFiLlama), investor interest in efficient, low-cost trading protocols remains strong—positioning platforms like 1inch favorably amid rising competition.
Technical Outlook: Signs of Momentum Building
Technical indicators suggest growing bullish momentum for 1INCH:
- The Relative Strength Index (RSI) sits at 48 on the 4-hour chart (TradingView), reflecting neutral momentum with room to climb.
- A bullish MACD crossover occurred on the 1-hour chart at 13:00 UTC on April 27, where the signal line crossed above the MACD line—often seen as an early sign of upward momentum.
- Key support is identified at $0.190, while **resistance** looms at $0.210 based on Binance order book depth (April 27, 15:30 UTC).
Additionally, spot trading volume for 1INCH/USDT spiked by 15% over the past 24 hours to $9.2 million (CoinGecko), while daily on-chain transaction count jumped 10% to 5,600 (Etherscan). These metrics point to increased market participation and potential accumulation ahead of a breakout.
FAQ: Your Questions About the 1INCH Buyback
Why did the 1inch team sell WBTC to buy 1INCH?
Selling WBTC—a stable and liquid asset—allows the team to free up capital without relying on external funding. By reinvesting in their own token, they may be signaling confidence in its future value and aiming to strengthen market trust.
Does this mean 1INCH price will go up?
While no single event guarantees price appreciation, large-scale buybacks often act as catalysts. Combined with rising trading volume and positive technical signals, this move increases the likelihood of upward movement if buying pressure continues.
How does this affect long-term investors?
For long-term holders, team-led accumulation can be reassuring. It aligns incentives between developers and investors and may reduce volatility by tightening supply.
Is AI influencing 1INCH trading activity?
Yes—data shows AI-powered trading bots on Binance have increased execution frequency for the 1INCH pair by 7% over the past week. While not directly related to the buyback, automated strategies can amplify both rallies and corrections.
What should traders watch next?
Monitor whether price breaks above $0.210 resistance with sustained volume. Also track wallet activity and any further on-chain movements from known team addresses.
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Core Keywords Driving This Narrative
Understanding search intent is crucial for both investors and content discovery. The following core keywords naturally emerge from this analysis:
- 1INCH price prediction
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- 1inch team buyback
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- WBTC to 1INCH swap
- DeFi market trends
- token accumulation signals
- cryptocurrency technical analysis
These terms reflect what users are actively searching for when evaluating assets like 1INCH—particularly around price forecasts, market psychology, and strategic portfolio decisions.
Final Thoughts: A Vote of Confidence in DeFi’s Future
The recent $1.094 million acquisition of 1INCH tokens by its own team fund is more than just a treasury maneuver—it's a strategic statement. At a time when many projects face skepticism over token distribution and long-term vision, actions like these reinforce credibility.
For traders and investors alike, combining fundamental insights (like team activity) with technical signals and macro trends offers a holistic approach to decision-making in volatile markets. As DeFi continues maturing, protocols that demonstrate active stewardship—like the 1inch network—are likely to stand out.