This Surprise Altcoin Listed on Binance Suffers a Big Drop! Here’s Why

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.