1inch operates across various networks including Ethereum, Arbitrum, Optimism, Polygon, and zkSync Era.
In the final quarter of the previous year, 1inch witnessed a significant rise in its volumes and market presence, coinciding with a general market recovery,
Messari’s latest report highlights that the renowned DEX aggregator achieved over $30 billion in trading volume, securing a dominant 64% of the Ethereum DEX aggregator market. This marked increase in volume from external sources indicates a growing preference for 1inch as a backend solution and the broadening of aggregator platforms.
1inch Records Heightened Trading Activity in Q4
The growth in transactions is largely due to the introduction of new products, reflected in heightened activity in the Limit Order Protocol (LOP) and 1inch Fusion. However, transactions via the Aggregation Protocol saw a decrease in the same quarter.
1inch’s trade share on Uniswap V3 and V2 rose by 8 and 3 percentage points, accounting for 40% and 8% of trades and trade volume, respectively. According to Messari’s report, 1inch’s volume on these Uniswap versions jumped from $5.6 billion in Q3 to $10 billion in Q4.
This share was primarily taken from Curve and Dodo, ranked second and now sixth in execution venues. Meanwhile, PancakeSwap maintained over $1 billion in trade volume from 1inch for the second quarter in a row, making up 7% of 1inch’s total volume in Q4.
In this period, 1inch’s volume growth significantly outpaced its peers, leading to an increase in its market share from 59% in Q3’23 to 63% in Q4’23.
The only notable competitor to increase market share in Q4 was CoW Swap, capturing 11% of the Ethereum aggregator volume. ParaSwap and 0x each held 11% and 10% of the market, respectively, in Q4.
1inch DAO’s Strategic Moves in Q4
The 1inch DAO actively managed its treasury in Q4, diversifying its stablecoin assets by exchanging a million USDC for DAI. These funds were then invested as sDAI to generate interest, marking the first reallocation since depositing 1 million USDC in Aave for interest in Q2.
On the spending side, the DAO executed three major transactions totaling just over $1 million. Notably, on December 30, $890,000 USDC was dedicated to funding user support services within the 1inch Network. The quarter also saw a 7% increase in the staked amount of 1INCH tokens.