1inch Protocol Reaches $500B Trading Volume Milestone on Ethereum Network
1inch Network Milestone
- 1inch Network, a DEX aggregator, announced it routed $500 billion in trades on the Ethereum network since 2019.
- Total swap volume across all chains reported by 1inch is over $700 billion. However, third-party data varies. DeFiLlama reports approximately $235 billion, while Dune Analytics shows over $716 billion.
- The discrepancies are due to different data aggregation methods and start dates.
Market Position and Challenges
- 1inch remains a leader in DEX aggregators but faces competition. CoW Swap has captured 26% of the Ethereum market share.
- New models like dark pools on Solana indicate growing competition in the DeFi sector.
Token and Governance Issues
- The native token, 1INCH (https://holder.io/coins/1inch/), has an indirect value capture mechanism, causing frustration among holders.
- Users must lock tokens for "Unicorn Power," which can be delegated for arbitrage profits. This system disconnects rewards from trading fees.
- Community discussions highlight debates on using the DAO's treasury for direct rewards, amidst concerns about sustainability.
Financial and Security Concerns
- The 1inch DAO has a treasury of around $10.9 million, with funding from 1inch Labs reportedly halted two years ago.
- In March 2025, the protocol faced a security exploit resulting in a $5 million loss.