DeXe's token suffered a dramatic plunge, losing over 85% of its value after an initial 115% surge earlier in July, sparking concerns about a similar fate for Injective (INJ) amid shifting DeFi liquidity patterns. On-chain analytics from Santiment show large inflows of both tokens onto exchanges, signaling potential sell pressure building in the sector.
DeFi Asset Movements Signal Rotation
DeXe’s price dropped from highs above $49 to approximately $4.64, with one trading day alone accounting for nearly a 24% loss and record volume levels for months. This volume spike corresponds to increased selling activity rather than a gradual decline. Meanwhile, open interest in DeXe climbed to a multi-month peak despite the falling price, indicating rising leveraged short positions rather than position closures.
Santiment data highlights that both DeXe and Injective experienced the largest exchange inflows among DeFi tokens in 2026, moving about 261,000 DEXE and 1.8 million INJ tokens onto exchanges. In contrast, tokens like Curve (CRV) and Uniswap (UNI) saw significant withdrawals around 9.8 million CRV and 8.4 million UNI pulled off exchanges suggesting holders opt for self-custody or staking, not immediate liquidation.
This suggests capital is rotating within the DeFi ecosystem rather than exiting entirely. The behavior of Injective’s exchange inflows raises questions about whether it might face a liquidity-driven price reversal similar to DeXe’s.
The intensity of DeXe’s crash underlines the volatility that can arise when tokens rally without substantial fundamental support. Its rapid rise attracted momentum traders; however, the subsequent steep fall erased most gains. The combination of heavy sell pressure and increased open interest points toward coordinated leveraged selling going on during the downturn.
Material is for informational purposes and does not constitute financial advice.
