What Is the 1INCH Token?
1INCH is the native cryptocurrency token of the 1inch Network, a leading decentralized exchange (DEX) aggregator. Built on the Ethereum platform and launched in December 2020, the network is designed to provide users with the most efficient trading routes by scanning multiple decentralized exchanges to find the best possible prices and lowest slippage for cryptocurrency swaps. The 1INCH token plays a central role in ecosystem governance, allowing holders to vote on key protocol upgrades and decisions.
Key 1INCH Market Data and Price Performance
As of the latest data, the live price of 1INCH is $0.1721**, reflecting a 24-hour change of **-1.15%**. The token holds a market capitalization of approximately **$240 million, ranking it within the top 200 cryptocurrencies globally. With a circulating supply of 1 billion coins, its trading volume over the past 24 hours has been notable, exceeding $10 million.
Key Price Stats:
- 52-Week Range: $0.1492 - $0.6276
- All-Time High: $4.14 (recorded on November 25, 2021)
- Recent Performance: The price is down -4.81% over the past week and has experienced a significant -56.82% change over the past year.
Technical indicators currently show a predominantly bearish sentiment, with 12 bearish signals compared to 1 bullish signal. Key moving averages (SMA and EMA) across various timeframes also suggest a selling trend.
Understanding 1inch Network Tokenomics
The distribution of the 1INCH token supply is strategically allocated to ensure long-term growth and community alignment.
Token Allocation:
- Community Incentives: 30%
- Core Contributors: 22.5%
- Backers 1: 18.5%
- Network Growth Fund: 14.5%
- Backers 2: 12.2%
- Small Backers: 2.3%
This structure is designed to reward those who build, maintain, and use the network while funding future development.
Wealth Distribution Analysis
A analysis of wallet holdings provides insight into the distribution of 1INCH tokens across the network.
Wealth Distribution Breakdown:
- Top 10 Addresses: Hold 56.01% of the total supply.
- Addresses 11-100: Hold 26.74%.
- Addresses 101-1000: Hold 12.54%.
- All Other Addresses: Hold the remaining 4.72%.
It is important to note that the top addresses often include exchange custody wallets, which hold funds for many individual users. Nonetheless, concentration is a factor for potential investors to consider. For a deeper look into on-chain metrics and what they mean for the network's health, you can explore more strategies.
The Technology Behind the 1inch Aggregator
The 1inch Network stands out in the decentralized finance (DeFi) space due to its sophisticated technology. Its core innovation is the Pathfinder algorithm, which finds the most efficient paths for token swaps across hundreds of liquidity sources. This can improve swap rates for users by up to 6.5%.
The platform offers several key features:
- Best Price Execution: Splits a single trade across multiple DEXs to minimize slippage.
- Limit Order Functionality: Allows users to set specific price targets for their trades.
- Gas Optimization: Helps users save on Ethereum transaction fees.
- Secure & Audited: The protocol's smart contracts have been audited by leading security firms, ensuring a trustless and secure trading environment.
Historical Performance and ROI
1INCH's historical performance highlights the volatility common in the cryptocurrency market. Since its all-time high of over $4 in late 2021, the token price has declined significantly. An initial investment of $100 at the first recorded price would be worth approximately $4.40 today.
Key Return Metrics:
- 3-Month ROI: -6.64%
- 6-Month ROI: -58.12%
- 12-Month ROI: -56.31%
The token also shows high volatility, with a 12-month volatility measurement of 90.53%.
Frequently Asked Questions
What is the main purpose of the 1inch Network?
The 1inch Network is a DEX aggregator that sources liquidity from various decentralized exchanges to provide users with the best possible trading rates. It solves the problem of fragmented liquidity in DeFi by scanning multiple platforms instantly, ensuring traders do not overpay for their swaps due to high slippage or poor pricing on any single exchange.
How is the 1INCH token used?
The 1INCH token is primarily a governance token, granting holders the right to vote on proposals that dictate the future development and parameters of the 1inch protocol. This includes decisions on fee structures, treasury management, and technical upgrades, empowering the community to steer the project democratically.
What was the highest price ever recorded for 1INCH?
The highest price ever recorded for 1INCH was $4.14, achieved on November 25, 2021, during a broad bull market across the cryptocurrency sector. This marks its all-time high, and the price has not returned to this level since.
Where can I buy and trade 1INCH?
1INCH is widely available for trading on numerous major cryptocurrency exchanges. It is typically found in trading pairs against stablecoins like USDT and USDC, as well as major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Always ensure you are using a reputable and secure platform for any transaction.
What are the key factors that influence 1INCH's price?
The price of 1INCH is influenced by general crypto market trends, the adoption and volume flowing through the 1inch aggregator, updates to its protocol (such as the recent Core algorithm upgrade), and broader developments within the DeFi ecosystem that increase or decrease the demand for efficient trading tools.
How does 1inch ensure the security of user funds?
1inch is a non-custodial aggregator, meaning users never deposit funds into a 1inch wallet; they always trade directly from their own personal wallets. This significantly reduces counterparty risk. Furthermore, all of its core smart contracts have undergone rigorous audits by top-tier security firms to identify and eliminate potential vulnerabilities. To view real-time tools for managing your DeFi investments, consider platforms that offer comprehensive market data.