The 1inch Network (COIN: $1INCH) is a leading DEX that operates as a decentralized exchange aggregator. Its goal is to offer traders the best price at the lowest transaction cost. On any DEX, transaction fees and prices can vary significantly. 1inch eliminates the need to compare prices across these DEXs manually.
It collects data in real-time, which lets traders identify the best prices across different markets in one platform. 1inch aggregates data from leading exchanges like 0x, SushiSwap, Uniswap, Balancer, and the Kyber Network.
The Design of the 1inch Network
1inch is analogous to travel booking sites. On these sites, users view aggregated prices from various hotels, airlines, and travel services. 1inch compares crypto prices and transaction fees across various DEXs.
Data Aggregation
The 1inch aggregation protocol collects real-time data and routes trades to platforms that offer the lowest fees and best prices. It allows traders to use one platform to compare prices and execute trades across the entire DEX world.
One of the latest innovations on 1inch is Pathfinder. It finds the best trading route across multiple platforms. Pathfinder breaks a single trade into small portions across multiple platforms to deliver the best outcome. That eliminates the need for traders to engage in complex discovery and routing.
The 1inch Network Liquidity Protocol
The liquidity protocol in the 1inch Network, formerly called Mooniswap, lets users earn a passive income via liquidity mining. The protocol is essential to ensuring liquidity on 1inch. It utilizes virtual balances to minimize impermanent loss. Users deposit tokens to the liquidity pools and, in return, receive 1inch tokens as rewards.
One unique aspect of 1inch is that the liquidity protocol has a feature known as virtual rates. It aims to address malicious front-running activity.
Front-running occurs when trading bots observe a transaction broadcast on the network and place a bid with a high fee to ensure their transaction comes before the pending transactions.
A virtual rate introduces an adjustment to the fee in the liquidity pool, making the trade unprofitable for malicious actors.
1inch Network Limit Order Protocol
The limit order protocol lets traders place conditional orders beyond standard swap orders. Consequently, a trader can place stop-loss orders and trailing stop orders to lock profits automatically at set price points.
The 1inch Network Token (1INCH)
The INCH token is the utility and governance token in the 1inch Exchange—these tokens launched in December 2020, with 6% of the total supply unlocked at the time. As of November 1, 2023, the INCH tokens have a market cap of $304,487,237.
The total supply of the tokens is 1,500,000,000 1INCH, and the circulating supply is 1,043,800,860 1INCH. They have a 24-hour trading volume of $21,688,098 at $0.2909 per token. The tokens achieved their all-time high price of $7.87 on May 8, 2021. The current price is a 96.38% discount on the ATH.
1INCH Price Prediction
By the end of 2023, 1INCH could be trading in the $0.49-$1.18 range. The price of 1INCH could reach $2 by 2025. For 2025, the upper trading range prediction for 1INCH tokens is $1.36-$1.95. The prediction is due to increased acceptance of the 1inch Network by major financial institutions. For instance, the 1inch Network announced on October 31, 2023, that Swiss bank Sygnum would offer 1INCH tokens to its customers.
In 2024, the strong fundamentals of the 1inch Network could bolster institutional interest in the project. The growing adoption could push the price of 1INCH to $0.857 in 2024. However, the price could stagnate at around $0.392 if the project does not meet expectations. A slowed pace of adoption could stagnate the price of 1INCH at $0.624 in 2024.
The long-term prospects for 1inch tokens look promising. By 2030, the tokens could be worth an average of 4.04, with a price range of $3.46-$4.68.
Is 1INCH a Good Investment?
According to the 1inch Network homepage, there are over 467 liquidity sources. Additionally, over 10.5 million wallets hold 1INCH tokens, with over 61.1 million transactions worth over $400 billion. Currently, the network has a total value locked in at $4.96 million.
Based on these figures and the projected price of 1INCH tokens, it is a good investment. However, crypto assets are highly volatile, and their price can swing dramatically. Keep that in mind when investing in 1inch.
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