What Is 1inch Network (1INCH): Best Swapping Rates Across DEXs

Key Takeaways

• 1inch Network aggregates liquidity from multiple decentralized exchanges across various blockchain networks, providing users with optimal swap rates and processing over $100 billion in trading volume.
• The platform’s core technology, the Aggregation Protocol, uses Pathfinder to find the most efficient trading routes in under a second, capable of splitting transactions across multiple liquidity sources.
• Recent innovations include Fusion+, an intent-based atomic cross-chain swap protocol that eliminates network fees and provides protection against maximal extractable value (MEV).
• The ecosystem consists of multiple products including the 1inch dApp, Wallet, Developer Portal, and Portfolio tracker, all governed by a community-driven DAO.
• Currently priced at $0.177 with a market cap of $269 million, the 1INCH token enables governance participation and can be staked to receive Unicorn Power for rewards and voting rights.

In the rapidly evolving world of decentralized finance (DeFi), finding the best prices across fragmented liquidity sources has been a persistent challenge for crypto traders. The 1inch Network (1INCH) addresses this problem by providing a comprehensive suite of DeFi tools centered around its flagship liquidity aggregation service. Founded in 2019, 1inch has expanded from a simple DEX aggregator to a multi-chain ecosystem of products designed to optimize trading efficiency and cost-effectiveness. The platform has recently gained attention for its Fusion+ technology, a cross-chain innovation that enables gasless swaps with enhanced protection against frontrunning. As of April 25, 2025, 1INCH is trading at $0.177, with a circulating supply of 1.39 billion tokens and a market capitalization of approximately $269 million.

What Is 1inch Network?

The 1inch Network is a decentralized finance (DeFi) platform that offers a range of blockchain-based products and services centered around optimizing cryptocurrency trading. At its core, 1inch functions as a DEX aggregator, searching across numerous decentralized exchanges to find the most favorable rates for traders. This optimization happens in real-time, comparing prices across platforms like Uniswap, SushiSwap, Curve, and dozens of other integrated protocols.

Originally conceived during the ETHNewYork Hackathon in May 2019, 1inch started as a simple solution to the inefficiencies of trading on individual DEXes. The founders recognized that liquidity fragmentation across the DeFi landscape created significant price disparities, presenting both a problem for users and an opportunity for an aggregation service. Since then, 1inch has evolved into a comprehensive DeFi ecosystem supporting multiple blockchain networks including Ethereum, BNB Chain, Polygon, Optimism, Arbitrum, and several others, with each implementation tailored to the specific characteristics of its host blockchain.

Who Is Behind 1inch Network?

1inch Network was founded by Sergej Kunz and Anton Bukov, two developers with extensive backgrounds in smart contract security and blockchain technology. Before creating 1inch, Kunz worked as a smart contract auditor and security engineer, while Bukov had experience developing blockchain applications and participated in numerous hackathons. Their combined expertise in blockchain security and DeFi mechanics provided the foundation for 1inch’s development.

The project has attracted significant partnerships and integrations since its inception. The 1inch Aggregation Protocol now connects with over 250 liquidity sources across multiple blockchain networks. In recent developments, the team has collaborated with security and compliance specialists to enhance the platform’s security features. The 1inch Foundation, a non-profit organization, manages aspects of the ecosystem’s development, while the community-driven 1inch DAO enables token holders to participate in governance decisions. This structure has helped 1inch maintain both innovation and community alignment as it has grown from a hackathon project to one of the leading DeFi platforms.

How 1inch Network Works: A Technical Explanation

The 1inch Network’s technical architecture centers around several key components that work together to provide users with optimal trading experiences. The flagship Aggregation Protocol serves as the foundation, functioning as a sophisticated routing system that searches across multiple liquidity sources to find the best possible rates for any given swap. This protocol employs Pathfinder, an advanced algorithm that can calculate the most efficient trading route in less than a second. What makes Pathfinder particularly powerful is its ability to split a single transaction across multiple DEXes and even use different market depths within the same liquidity source, all while factoring in gas costs to ensure true efficiency.

At the protocol level, 1inch employs smart contracts that perform runtime verification of transaction execution. This critical security feature ensures that even if a transaction interacts with potentially unsafe liquidity sources, user funds remain protected. The verification process confirms that the actual execution meets the expected parameters before finalizing any transaction. This architecture allows 1inch to integrate with a wide range of protocols without compromising on security, giving users access to extensive liquidity while minimizing risks.

Beyond simple aggregation, 1inch has developed several innovative technologies that extend its capabilities. The Limit Order Protocol allows users to set conditional orders with dynamic pricing, moving beyond the limitations of basic market orders. More recently, the platform introduced Fusion+, a cross-chain solution that enables intent-based atomic swaps across different blockchain networks. This technology uses a Dutch auction mechanism where “resolvers” compete to fill orders, eliminating network fees for users and providing protection against maximal extractable value (MEV) extraction. Through this system, a maker signs and broadcasts an order, which initiates an auction, followed by deposit and withdrawal phases that ensure secure cross-chain transactions without relying on centralized intermediaries.

The governance layer of 1inch is managed through its DAO (Decentralized Autonomous Organization), which allows 1INCH token holders to participate in decision-making. Users can stake their tokens to receive “Unicorn Power,” which can then be used for voting on protocol changes or delegated to other participants. This system creates alignment between token holders and the platform’s development, ensuring that improvements reflect user needs and preferences rather than just team objectives.

Current Status Of 1inch Network In The Wider Ecosystem

1inch Network has established itself as a cornerstone of the DeFi ecosystem, particularly in the DEX aggregator sector where it commands significant market share. The platform currently integrates with hundreds of liquidity sources across multiple blockchain networks, with 57 protocols on Ethereum alone, 47 on BNB Chain, 40 on Polygon, and dozens more across other supported networks. This extensive integration makes 1inch one of the most comprehensive aggregation services available, providing users with access to deep liquidity pools regardless of which blockchain they prefer.

In the competitive landscape of DeFi trading platforms, 1inch has differentiated itself through technological innovation and user experience. While other aggregators focus primarily on price discovery, 1inch has expanded its value proposition with features like gasless swaps, limit orders, and cross-chain functionality. This comprehensive approach has helped the platform maintain relevance despite increasing competition from both specialized aggregators and exchanges developing their own routing capabilities.

Adoption metrics show strong user engagement with the platform. The 1inch dApp has processed billions in trading volume, with millions of swaps executed across its supported blockchains. Community growth has been particularly notable on the testnet, which has attracted over 24 million active addresses, including 9.5 million new addresses in a single week period. This level of activity demonstrates significant interest in the platform’s offerings and suggests potential for continued growth as these users transition to mainnet operations.

The platform’s reputation in the wider crypto community remains generally positive, with users appreciating its ability to consistently find competitive rates and its ongoing technical innovation. However, like many DeFi projects, 1inch faces scrutiny regarding the centralization aspects of some of its components, particularly around governance and the role of resolvers in the Fusion system. These discussions reflect the broader tension in DeFi between performance optimization and decentralization principles, a balance that 1inch continues to refine through its development roadmap.

1inch Network’s Price Journey

The 1INCH token has experienced significant price volatility since its introduction in December 2020. Initially trading around $3.91, the token quickly caught investor attention during the DeFi boom of 2020-2021. The bullish momentum carried 1INCH to its all-time high of approximately $8.65 in October 2021, coinciding with the broader crypto market’s strong performance during this period.

However, the token has faced considerable challenges since reaching that peak. Throughout 2022, 1INCH followed the broader market downturn, closing the year at approximately $0.38. The year 2023 showed mixed performance, with 1INCH reaching a high of $0.69 before settling at $0.43 by year-end, representing modest annual growth despite the volatility. The token faced additional pressure in 2024, experiencing several significant price swings but ultimately declining to about $0.38 by December.

The most recent price action has been particularly challenging, with 1INCH reaching an all-time low of $0.1496 in early April 2025 before recovering slightly to its current price of $0.177 as of April 25, 2025. This represents a decline of approximately 97.8% from its all-time high. The recent price weakness can be attributed to several factors, including general market conditions, increased competition in the DEX aggregator space, and possibly selling pressure from early investors and token unlocks. Despite these challenges, recent price action shows signs of stabilization, with a 15.1% increase over the past seven days, suggesting potential renewed interest in the project following its recent technical innovations.

Current Data & Interesting Statistics About 1inch Network

• 1inch has integrated with over 250 liquidity protocols across multiple blockchains, including 57 on Ethereum, 47 on BNB Chain, and 40 on Polygon Network.
• The platform’s current market capitalization stands at $269 million with a 24-hour trading volume of approximately $24.4 million as of April 25, 2025.
• 1INCH has a circulating supply of 1.39 billion tokens, representing about 92% of its maximum supply of 1.5 billion 1INCH.
• The total value locked (TVL) in 1inch protocols is approximately $3.44 million, resulting in a market cap to TVL ratio of 78.38.
• The 1inch testnet has demonstrated remarkable adoption with over 24 million active addresses, including 9.5 million new addresses added in a single week.
• The platform supports trading across 12 different blockchain networks, making it one of the most widely available DeFi applications in the ecosystem.
• 1inch has processed over $100 billion in cumulative trading volume since its inception, highlighting its significant role in facilitating decentralized exchange activity.

What Is The Future Of 1inch Network?

The future outlook for 1inch Network appears focused on advancing cross-chain interoperability and enhancing user experience through technical innovation. According to recent developments, including the release of their cross-chain innovation white paper in late 2024, the project is prioritizing solutions that bridge the gaps between different blockchain ecosystems. Their intent-based atomic cross-chain swap protocol represents a significant step in this direction, potentially positioning 1inch as a leader in multi-chain DeFi infrastructure.

The roadmap also suggests continued expansion of their product suite, with developments centered around the Fusion technology, portfolio management tools, and physical/virtual card offerings that bridge traditional finance and DeFi. These initiatives align with broader industry trends toward greater accessibility and practical utility of crypto assets. Market analysts anticipate that if 1inch can successfully execute on these plans, it could strengthen its competitive position in the increasingly crowded DEX aggregator space.

Community governance is likely to play an increasingly important role in the project’s development, with the 1inch DAO taking on more responsibility for strategic decisions. As DeFi regulation evolves globally, 1inch’s recent focus on compliance partnerships may prove prescient in navigating the changing landscape. The key to 1inch’s future success will ultimately lie in its ability to maintain technical innovation while adapting to regulatory requirements and user needs.

Navigating The Future Of DeFi Trading

The 1inch Network represents one of the most comprehensive attempts to solve the fragmentation challenges that have plagued decentralized finance since its inception. By aggregating liquidity across hundreds of sources and multiple blockchains, 1inch provides a critical infrastructure layer that improves trading efficiency throughout the ecosystem. The platform’s evolution from a simple DEX aggregator to a multi-product DeFi suite demonstrates its adaptability in a rapidly changing landscape.

While price performance has been challenging recently, with 1INCH trading well below its historical highs, the technical foundation and ongoing innovation suggest potential for long-term relevance. The success of initiatives like Fusion+ and cross-chain interoperability could position 1inch favorably as DeFi continues its march toward mainstream adoption. For traders and DeFi users, 1inch remains a valuable tool for accessing optimal rates across the fragmented liquidity landscape, embodying the core promise of decentralized finance: greater efficiency, transparency, and user empowerment in financial transactions.