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1INCH Price Plummets After Single Wallet Dumps 14 Million Tokens in Massive Transaction

1INCH Price Plummets After Single Wallet Dumps 14 Million Tokens in Massive Transaction

Published:
2026-01-27 20:00:08
15
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1INCH price sinks after a wallet dumped 14 million tokens in a single transaction

Whale-sized sell-off triggers market tremors.

When a single wallet moves, the entire market feels it. That's exactly what happened with 1INCH this week—a massive, concentrated sell-off that sent shockwaves through the decentralized exchange aggregator's token price.

The Anatomy of a Dump

A single entity unloaded a staggering 14 million 1INCH tokens in one go. That's not a gradual exit or a strategic rebalancing—it's a fire sale. The sheer volume of the transaction overwhelmed typical buy-side liquidity, creating immediate downward pressure that the price couldn't withstand.

Market Mechanics Under Stress

This event is a brutal reminder of the liquidity challenges even established DeFi tokens can face. Automated market makers and liquidity pools are designed for distributed trading, not for absorbing a tsunami of sell orders from a single source. The price sank because the market's infrastructure was momentarily outmatched.

Who's Left Holding the Bag?

Every major sell-off creates winners and losers. The wallet owner presumably secured an exit—whether at a profit or a loss is their business. The losers are the retail traders and smaller holders who watched their portfolio value dip in sync with the chart. It's the classic crypto narrative: the big players move the market, and everyone else just rides the wave.

A cynical take? Just another day in the digital casino—where 'decentralized finance' sometimes means your funds are at the mercy of a few anonymous wallets with very large keys.

Is the 1inch team selling?

The latest token dump forms part of an established pattern of team-related selling activity that has characterized 1inch’s market behavior over the past year. 

In December 2024, the 1inch team sold 15.698 million tokens for 8.38 million USDC over three days. Earlier, in August 2025, addresses linked to the team disposed of 6.45 million 1INCH at an average price of $0.28, converting them into 1.8 million USDC. 

The team also sold around 5,000 ETH around that period and made a profit of around $3.7 million from that, after acquiring thousands of ETH and millions of 1INCH tokens some months prior. They later went on to purchase more ETH in August 2025.

In November 2025, team-linked wallets withdrew $3.71 million worth of 1INCH from Binance. However, that same month, it also increased its 1INCH holdings. The recurring nature of these transactions has created persistent downward pressure on the token’s price trajectory, even as the protocol announces positive developments.

Will 1inch’s development and partnerships save the day?

Despite the selling pressure, 1inch has continued to announce protocol improvements and partnerships. The project revealed a collaboration with Innerworks to deploy an artificial intelligence-powered security system designed to counter synthetic AI fraud in October 2025. 

Rewardy Wallet integrated the 1inch Swap API, enabling gasless token swaps across five major ethereum Virtual Machine-compatible blockchains.

It also announced integrations that enable DeFi swaps for users of Nicegram, the privacy-focused app that allows payments and trading on the BNB Chain.

These developments, however, have proven insufficient to overcome the headwinds from persistent insider selling and weakened sentiment across the DeFi sector. The platform may also have to be transparent on who made the withdrawal and why to bring back sentiments to the positive.

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