Blockchain analytics firm Spot On Chain has revealed significant transactions involving Pantera Capital and the altcoin 1inch (1INCH).
Pantera Capital's Strategic Moves with 1INCH
- Recent Transaction: Pantera Capital deposited 12.95 million 1INCH tokens (worth $3.52 million) to Coinbase Prime last Friday.
Historical Context:
- Pantera is an early investor in @1inch, unlocking 104.6 million 1INCH between 2021 and 2023.
- Since July 24, the firm has transferred 34.91 million 1INCH ($11.8 million) to centralized exchanges (CEXs) at an average price of **$0.338**.
These sales align with 1INCH's downward trend, where prices dropped from $0.40+** to **~$0.35, despite minor rebounds.
Broader Portfolio Implications
Pantera Capital’s $220+ million portfolio includes:
- ONDO: Largest holding at $173 million.
- Other assets: Arbitrum (ARB), Audio (AUDIO), and Lido DAO (LDO).
- Remaining 1INCH: 69 million tokens ($19 million).
👉 Explore crypto investment strategies to navigate volatile markets like Pantera.
1INCH Holders Under Pressure
Profitability Metrics (IntoTheBlock):
- 1% of holders are in profit.
- 96% are at a loss.
- 2% are break-even.
Price Performance:
- Monthly decline: ~40%.
- Current price: $0.2626 (daily drop of 5%).
Despite losses, 77% of holders have retained 1INCH for over a year, signaling long-term resilience.
Market Outlook and Analyst Perspectives
Bearish Factors:
- Pantera’s sell-offs reflect waning confidence.
- Broader crypto market downturns amplify 1INCH’s slump.
Bullish Potential:
- Analysts like Michael van de Poppe suggest altcoins may have bottomed out, with recovery potential.
- Altcoin market cap is 60% below peak vs. Bitcoin’s 15% decline, indicating room for growth.
👉 Learn how to identify altcoin opportunities amid market fluctuations.
FAQs
Q: Why is Pantera Capital selling 1INCH?
A: To mitigate losses amid sustained bearish trends and declining investor interest.
Q: What percentage of 1INCH holders are profitable?
A: Just 1%, while 96% face losses.
Q: Could 1INCH recover soon?
A: Analysts note altcoins may rebound, but 1INCH’s recovery depends on broader market sentiment.
Q: How long do most 1INCH holders retain their tokens?
A: Over 77% hold for 1+ year, suggesting long-term commitment.
Q: What’s Pantera’s largest crypto holding?
A: ONDO, valued at $173 million.
Conclusion
Pantera’s divestment highlights 1INCH’s challenges but also underscores the volatile nature of altcoin investments. Investors should monitor market trends and diversify strategies to navigate similar scenarios.