Recently, there has been explosive growth in the decentralized finance (DeFi) space, with DeFi crypto accounting for a market cap worth $109.29B.
This led to several DEX (decentralized exchange) platforms emerging with innovative options to mark their presence in the DeFi market. Other the other hand, there is also an uprising challenge to the DEXs from DEX aggregators. A DEX aggregator sources liquidity from different DEXs, thus offering users better token swap rates than they could get on any DEX.
One of the most impressive players is the 1Inch Network, which utilizes collaboration amongst decentralized protocols to provide the most lucrative, fastest, and protected operations in the DeFi space. According to CoinMarketCap, as of 24/01/22, the price of a 1Inch Network token is USD 1.45, with a 24-hour trading volume of USD 89,635,925.
Furthermore, 1Inch token’s price has decreased by 13.06% in the last 24 hours. The current CoinMarketCap ranking for top DeFi tokens is #21, with a market cap of $678,760,815 USD. It has a circulating supply of 468,080,463 1Inch coins. 1Inch Network has established itself as one of the market leaders in the DEX aggregator space and has occupied 7th rank in the top 10 DEXs as per trading volume.
Advantages and Disadvantages:
1Inch Ecosystem: 1Inch Network was officially launched in August 2020. Figure 2 illustrates the multiple components of the 1Inch Network ecosystem.
DAO: The onset of governance of the 1Inch Network by a decentralized autonomous organization (DAO) began with the release of the 1Inch token in December 2020. The DAO governs the 1Inch Network via the 1Inch token holders staking their tokens to vote on protocol parameters and governance.
Besides the 1Inch DAO, the 1Inch Network ecosystem consists of five other interoperable components – Aggregation Protocol, Liquidity Protocol, Limit Order Protocol, 1Inch Labs, and the 1Inch Foundation.
Protocols: Through the Liquidity protocol, users can earn passively with 1Inch tokens by providing liquidity to different pools (its liquidity pools along with other DEXs like Uniswap, Kyber Network, Balancer, Bancor, 0x protocol, curve.fi, etc.). Furthermore, by participating in different liquidity mining programs, users can, in return get to collect extra rewards in 1Inch tokens. The Aggregation protocol sources liquidity from various exchanges and can split a single trade transaction across multiple DEXs to ensure the best rates. Lastly, the Limit Order protocol provides users with some of the most innovative and flexible limit order functionalities available in DeFi.
The 1Inch Network unites the power of its three decentralized protocols to provide the best services to its users. The DEX aggregator solution searches deals across different liquidity sources for offering users better rates than what they can get from any single exchange.
The 1Inch Aggregation Protocol integrates the Pathfinder algorithm for finding the best paths across over 60+ liquidity sources on Ethereum, 30+ liquidity sources on Binance Smart Chain, 30+ liquidity sources on Polygon Optimistic Ethereum, and Arbitrum. It is notable that in a short period of approximately two years of operation, the Aggregation Protocol surpassed $80B in overall trading volume on the Ethereum network alone.
The Liquidity Protocol can be considered a next-generation automated market maker (AMM) that protects users from front-running attacks and offers liquidity providers attractive opportunities. Lastly, the Limit Order Protocol provides some of the most innovative and flexible limit order swap functionalities currently available in DeFi. The protocol has some distinguishing features, like dynamic pricing, conditional orders, extra RFQ support, etc., which powers various implementations, like stop-loss, trailing stop orders, and auctions.
The 1Inch Wallet: 1Inch network also offers a multichain mobile-based wallet. The wallet is designed with an easy-to-navigate interface with secure storing, transaction, and staking capabilities. The wallet is an in-house built from the scratch product by 1Inch to ensure that the users can have seamless interaction with the different features offered by the 1Inch Network.
Funding: 1Inch has been quite lucky to gather financing due to its innovation.
- In August 2020, 1Inch was able to raise $2.8M funding from Binance Labs, Galaxy Digital, Greenfield One, Libertus Capital, Dragonfly Capital, FTX, IOSG, LAUNCHub Ventures, and Divergence Ventures.
- In December 2020, 1Inch raised $12M in “Series A funding”, led by Pantera Capital. The funding round was conducted through a SAFT (simple agreement for future tokens) sale.
- In December 2021, 1Inch raised another $175M in “Series B round”, led by Amber Group.
Launch and Development
1Inch officially launched the 1Inch Liquidity Protocol, an automated market maker (AMM) named Mooniswap, in August 2020. Mooniswap is the next generation of AMMs that enable liquidity providers to capture profits otherwise captured by arbitrageurs. Along with the release of Mooniswap, in the same month, 1Inch was able to raise $2.8M in funding.
This was soon followed by the launch of 1Inch V2 in November 2020. One of its major components was the Pathfinder comprising a discovery and routing algorithm. Furthermore, the new release vouched for providing its users with the “best rates” and improved gas fee rates. As per their team, the upgrade offered rate for 1 sBTC-sUSD is almost 98% better than that provided by Uniswap.
In March 2021, V3 of the 1Inch Aggregation Protocol was released. This upgrade was aimed at facilitating lower gas fees. 1Inch also claims that due to the V3 upgrade, it is the fastest and most advanced DEX aggregation protocol currently in the DeFi market. E.g., as compared to Uniswap, it allows the swap of ETH for DAI at nearly 10.3% less gas. The V4 upgrade was released in November 2021.
Following the V3 upgrade, 1Inch set into implementation its Network’s governance tool “1Inch DAO”. The implementation is planned as a two-step process. The first phase, which is currently in the process, allows 1Inch token stakers to vote for various protocol settings. The second phase is scheduled to start in early 2022 and completely decentralize the 1Inch Network by launching the full DAO functionality. This would result in the Network being fully controlled by its community members.
Security: One of the fundamental problems with decentralized applications is the weaknesses in their smart contracts. Therefore, to ensure that all users’ funds and transactions are safe, 1Inch Network gets its smart contracts audited by some leading companies like OpenZeppelin, Consensys diligence, SlowMist Haechi Labs, Coinfabrik, Certik, Hacken, Scott Bigelow, Mix Bytes and Chainsulting. All of the audits are available here. The most recent audit of V4 is public here.
The 1Inch token: Launched in December 2020, the 1Inch token facilitates different tokenomics in the 1Inch Network. It serves as both a governance and utility token. Nevertheless, it is primarily aimed to govern all the 1Inch Network protocols. The current price of a 1Inch token is USD 1.58. Of the total supply of 1.5B, the 1Inch token launched with an initial circulating collection of 90M, 6% of the total supply. The remaining supply is set to unlock over four years until December 2024. Currently, 468M tokens are in circulation and 137K+ holders.
Multiple tokenomics: The 1Inch token is the governance and utility token of the 1Inch Network. The token is applied in different capacities in the two existing protocols. It will be used in the tokenomics of all new protocols released by the 1Inch Network.1Inch is a multichain token currently available on Ethereum and Binance Smart Chain (BSC) over a bridge.
Utility Token: Currently, the main application of 1Inch as a utility token is in the 1Inch Liquidity Protocol, where it is used as a connector to achieve high-efficiency routing.
Governance Token: The 1Inch token governs all of the 1Inch Network’s current and future protocols. It utilizes the governance modules of the 1Inch Aggregation Protocol and the 1Inch Liquidity Protocol.
Multichain Token: The 1Inch token is currently available on Ethereum and Binance Smart Chain (BSC). The BSC integration was implemented over a bridge with no additional token issuance.
The initial token distribution was made to wallets that had interacted with the 1Inch Network and had completed a defined set of trades until December 24, 2020. Other than this, tokens were also distributed to different liquidity providers. 30% of the total token supply will go to community incentive programs. Another 14.5% from the growth and development fund was used to issue grants and incentivize developers to build on 1Inch protocols. The remaining tokens will go to backers and core contributors. The allocation of the token distribution is as shown in the chart below.
Staking 1Inch Tokens: 1Inch tokens holders can stake on the 1Inch protocol and collect governance rewards in return. Staking 1Inch can yield around 21.71% and has no lockup times mandated. Stakers earn 38% of all fees generated within the protocol, which are derived from ecosystem partnerships and positive slippage. Currently, 51,124,673 tokens of the circulating supply of 468M are staked. The chart below illustrates the number of 1Inch holders who opted for staking. This number has grown +9.39% over the past 90 days.
The staking process on the official 1Inch.exchange is straightforward. Furthermore, the APY compared favourably to similar projects in the market. Providing liquidity was easy as well.
As mentioned before, all of the 1Inch smart contracts, inclusive of the staking contract, are considered safe as a set of well-reputed auditing firms regularly audits them. There is no lockup time required when staking 1Inch. As per the current market conditions, there is a moderate risk for staking 1Inch at this time.
Community: 1Inch Network has been well received by users. It has been able to gain a strong following across multiple social platforms. Twitter 1inch’s the most central social channel with 887,197 followers and Telegram with 20,661 members. Other than this, the 1inch network’s community is quite active with approximately weekly Blog posts and daily social media posts and discussions. Also, the developers’ performance as their GitHub stats is good.
Competitors and valuation
The closest competitors to 1Inch Network are 0x API, Matcha, Paraswap, and Tokenlon. However, as seen from the chart below (Data sourced from Dune Analytics), the gap between 1Inch Network and its closest competitor, 0x API, is significant.
One valuation measure for DEX’s is the Mcap (market capitalization) to TVL (Total Value Locked) ratio. At the current $1.59, 1Inch has a market cap of $748,100,738. The current TVL is $25,768,713, resulting in a Mcap / TVL ratio for 1Inch of 29.12343. This is high compared to other popular DEXs, e.g., Uniswap has a Mcap to TVL ratio of 0.76987. However, other DEX aggregators perform better than 1inch Network (Source: Defi Llama).
Another measure worth highlighting other than the TVL is the average volume traded. 1Inch has a 0.5261% market share by volume ranking amongst the Top 10 DEX/aggregators by trading volume. However, based on market capitalization, 1Inch, with a current Mcap of $748,100,738, ranks 92 among DEX coins. (Source: CoinMarketCap)
1Inch Token Price Performance and Prediction:
As of 25-01-2022, the price of the 1Inch token is $1.59. As per Messari.io, 1Inch is currently ranked #86 in all assets, #5 in DEXs and #10 in DeFi ecosystem. The circulation supply of 1Inch tokens is 468,081,103, with a market cap of $744,238,638. With an increase in its trading volume and market cap, the 1Inch token’s price has shown a good growth of 6.76% in the last 24 hours. However, 1Inch Network is facing difficulty getting on board with other crypto coins. The 1Inch is down to almost -25.61% in the last seven days. The currency is still showing risking framing segments for the past few days, the coin might have solid fundamentals, but at the moment, it can’t be considered as a profitable asset in the short term. (Source: PricePrediction)
As per PricePrediction, within the last one month, the price of 1Inch decreased by -2.624%, eliminating a whopping average sum of $0.078 from its current value. This sudden down means that the coin is in a dip right now, meaning that it can be a good buy opportunity for quick investment. The 90 days price change is around -43.57%, and the price circulated from a minimum average price of $4.80 to a maximum average price of $5.80 in the past 90 days. 1Inch is down by -7.38%, with the maximum average price of the coin being around $2.61 and the minimum average price of was about $2.37 in the past four months.
Price Prediction of 1Inch token for the next ten years: Below, we provide a breakdown of the price prediction for FET token as provided by PricePrediction.
1Inch Price Prediction 2022: According to our profound technical analysis on past price data of 1Inch, In 2022, the price of 1Inch is predicted to reach a minimum level of $4.24. The 1Inch price can reach a maximum level of $4.91 with an average trading price of $4.38.
1Inch Price Prediction 2023: The price of 1Inch is predicted to reach a minimum level of $6.13 in 2023. The 1Inch price can reach a maximum level of $7.44 with an average price of $6.31 throughout 2023.
1Inch Price Forecast for 2024: As per the forecast price and technical analysis, In 2024, the price of 1Inch is predicted to reach a minimum level of $8.73. The 1Inch price can reach a maximum level of $10.71 with an average trading price of $8.99.
1Inch Price Forecast for 2025: 1 1Inch is expected to reach a minimum level of $12.73 in 2025. The 1Inch price can reach a maximum level of $15.29 with an average price of $13.18 throughout 2025.
1Inch Price Prediction 2026: 1Inch price is forecast to reach the lowest possible level of $18.50 in 2026. As per our findings, the 1Inch price could reach a maximum possible level of $22.01 with the average forecast price of $19.16.
1Inch Price Prediction 2027: According to our profound technical analysis on past price data of 1Inch, In 2027, the price of 1Inch is forecasted to be at around a minimum value of $28.54. The 1Inch price value can reach a maximum of $32.73 with an average trading value of $29.50 in USD.
1Inch (1Inch) Price Prediction 2028: The price of 1Inch is predicted to reach a minimum value of $43.38 in 2028. The 1Inch price could get a maximum value of $50.05 with an average trading price of $44.56 throughout 2028.
1Inch Price Prediction/Forecast 2029: As per the forecast and technical analysis, In 2029, the price of 1Inch is expected to reach a minimum price value of $62.95. The 1Inch price can reach a maximum price value of $75.20 with an average value of $64.74.
1Inch (1Inch) Price Prediction 2030: The price of 1Inch is predicted to reach a minimum value of $92.66 in 2030. The 1Inch price could reach a maximum value of $111.95 with an average trading price of $95.90 throughout 2030.
1Inch Price Prediction 2031: 1Inch price is forecast to reach the lowest possible level of $133.20 in 2031. As per our findings, the 1Inch price could reach a maximum possible level of $162.10 with the average forecast price of $137.99.
DEX aggregators have been growing their share of the overall DEX trade volumes, currently at 26.6% (Source: Dune Analytics). This is a positive perspective for 1Inch Network, which is now enjoying the top ranks amongst the DEX aggregators.1Inch network has all the elements required for a successful project in the crypto space. These factors include team, utility, developments and roadmap.
1inch network has an experienced team led by its co-founders Sergej Kunz and Anton Bukov and has its back supported by solid investors. In terms of utility, the innovative products put together by the 1Inch network have all been well received by users. Regarding the roadmap, 1Inch Network’s team has been consistent in delivering the milestones set along with the roadmap. On their way to meeting the milestones, 1Inch network has also successfully established essential partnerships.
As its co-founder stated, 1inch aims to ” open the floodgates of liquidity in the DeFi ecosystem”. Even though the platform has managed to do well so far, the road ahead has many challenges, provided that there is growing competition within the DeFi space across multiple segments. Regarding whether it is a good investment or not, 1inch Network’s value is expected to continue to expand, as shortage tends to encourage price rise.
However, it is worth noting that there is always some risk associated with any investment, and hence one should conduct the maximum research possible before investing.