DeXe plunges 85% as Santiment data flags DeFi liquidity rotation

DeXe's 85% collapse from a record high above $49 erased months of gains in a single session, as on-chain data revealed the largest exchange inflow of any DeFi token in 2026.

DeXe fell 85% from a record $49 to $4.64 after Santiment flagged 261,000 DEXE tokens moving to exchanges, the largest DeFi inflow of 2026.

"DeXe's correction coincided with one of the largest exchange inflows of 2026, reinforcing signs of distribution after its record-breaking rally," Santiment said in a July 22 post on X.

The analytics platform recorded 261,000 DEXE tokens deposited to centralized exchanges, the highest net inflow among major DeFi tokens this year. Injective followed with 1.8 million INJ moving onto trading platforms, while Curve and Uniswap saw the largest outflows, with 9.8 million CRV and 8.4 million UNI withdrawn to self-custody.

The divergence suggests capital is rotating within DeFi rather than exiting the sector, with traders locking profits from recent outperformers while accumulating tokens such as Curve and Uniswap. Injective's second-largest inflow ranking raises the question of whether it faces a similar correction.

Open Interest Surges as Selling Pressure Intensifies

DeXe's price action confirmed the bearish signal from exchange flows. After rallying to a record above $49 in early July, the token plunged nearly 24% in a single session to around $4.64, accompanied by one of its highest daily trading volumes in months. The cumulative volume delta recorded a sharp negative spike, indicating sell orders dominated market activity, while open interest surged to its highest level in months — a combination that typically signals new leveraged short positions entering rather than existing longs closing.

What to Watch Next

With 1.8 million INJ now sitting on exchanges, traders are watching whether Injective follows DeXe's trajectory. The contrasting outflows from Curve and Uniswap, however, indicate this is not a broad DeFi exodus but a rotation within the sector. For DeXe, the question is whether support can form after an 85% decline or if further selling pressure from exchange-held tokens pushes it lower.

This article is for informational purposes only and does not constitute investment advice.