Is It Worth Investing In 1INCH?

Last Updated February 3rd 2022

15 Min Read

The advent of cryptocurrency exchanges (DEXs) brought a new twist to the blockchain industry. These are exchanges that are not governed by any central authority, which means that they are not subject to government regulations, and no single entity maintains the order books.

And while DEXs platforms go a long way to pushing the whole concept of decentralization, they may encourage what is known as crypto arbitrage. This is where the exchanges may show different prices for and transaction fees for the same coin. This way, you may find that crypto like Ethereum sells for a different amount on, say, Uniswap compared to PanCakeSwap.

As a result, users may unknowingly buy ETH for more than its original price. But what if there was a way to compare prices from different DEXs platforms so you can get the best deals?

That is where the 1inch network comes in.

Contents:

What Is 1inch?
How Does 1inch Work?
1inch Price History
1INCH Price Predictions For 2022 And 2023
How To Invest In 1inch (1INCH)
Is 1inch A Good Investment?
Conclusion: So, Should I Buy 1INCH

What Is 1inch?

The 1inch Network is a blockchain agnostic platform that promises to provide traders with the best cryptocurrency rates by scanning different DEXs platforms. This allows traders to get the best deals and not risk overpaying.

As of November 2021, the Network allows its users to access a variety of liquidity sources, including:

66 on Ethereum
32 on Binance Smart Chain
22 on Polygon

1inch currently aggregates prices from decentralized exchanges such as Uniswap, Balance, 0x and Mooniswap, 1Inch's own liquidity protocol.

At the time of writing, it boasts of more than 1.6M users with a total trade volume of more than $134 billion. The Network also claims to have access to more than $55 billion worth of liquidity sources with 188 connected sources and a 56.40% aggregation share.

1inch was created in 2019 by Sergej Kunz and Anton Bukov during ETHNewYork’s hackathon. The network has since then raised around $15 million in funding. These include funding from Binance Labs, Pantera Capital and Galaxy Digital.

1inch also has its own governance and utility token known as 1INCH.

About 1INCH

The 1inCh token is the Network's proprietary utility and governance token. The Network offers its users access to liquidity for various DEXs platforms, while the 1INCH token provides liquidity for this network.

The token also plays a role in the Network's decentralized governance model, where staking is done through smart contracts, and its governance token features are used to ensure that price aggregation of tokens remains transparent.

Finally, the network encourages liquidity mining by rewarding users for their activity with 1INCH tokens. This means that traders get rewarded for trading their crypto, ensuring that the token value remains healthy.

1INCH has a market cap of $750 million with a coin price of $1.60 USD and a 24-hour trading volume of $68,217,111 USD, at the time of writing. According to CoinMarketCap, 1INCH has a Total Locked Value (TLV) of $69.6 million. There are currently 181 million coins in circulation with a total supply of 1.5 billion and more than 137K holders.

Of the 1.5 billion tokens, 6% were unlocked on the release date, while the remaining will be unlocked over the course of four years ending on December 30, 2024.

The token is currently available on several cryptocurrency exchanges. These include OKEx, Binance, KuCoin, FTX and Huobi Global.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How Does 1inch Work?

Let's assume you want to buy some Ethereum on a decentralized exchange like Uniswap, 0x or PanCakeSwap. When you look at the prices of ETH on these DEXs platforms, you will probably find that they are different. Now, there are multiple DEXs platforms, and it can be tedious to check all of them for the best price of ETH.

By using 1inch, it becomes easy for you to do so. The network will aggregate prices from different decentralized exchanges and show you the best deals or the cheapest way to trade Ethereum.

1inch also allows its users to make passive and active income through:

Trading Tokens - All users can earn 1INCH tokens by trading their Ether and ERC20 Tokens
Liquidity Mining - Users can mine 1INCH tokens by locking them in the Network's Liquidity Pool. This is done for a minimum of 300 days, during which they cannot trade or withdraw the tokens from their wallets
Governance Voting - Using 1INCH tokens, users can participate in governance votes when making decisions on how to best develop the platform community

Check Out: Will 1inch Make Me Rich In 10 Years?

1inch Price History

According to data from CoinMarketCap, 1inch began trading around Christmas of 2020. This was actually the day that the 1INCH cryptocurrency was launched. The network itself was founded back in May 2019, but the utility token didn’t come until December 2020. ‘

The coin’s open price was around $1.9, but it quickly shot to $2.63 the same. The price jump was probably due to an airdrop that 1inch used to lure in new users. Towards the end of 2020, a lot of tokens were distributed to users in a bit to boost liquidity and trading volumes.

Of course, there was a correction after the initial price hike, and barely three days later, 1INCH was trading at $0.9244. The coin managed to stay above $1 until mid-January 2021.

Around this time, the impact of the COVID-19 pandemic on the global economy was beginning to wear off, and a market-wide bull run was in the offing. 1INCH was well prepared, and by January 17th, it crossed $2 per coin as it readied itself for one of the wildest price runs.

The steep uptrend began on January 23rd where the token was trading at around $1.955. A week later, just as 2021 was signing off its first month, 1INCH hit $5.1, with its market cap jumping to $596.21 million from $262.19 million a week earlier.

By February 5th 2021, 1INCH had crossed $6. This was followed by an exciting price swing that saw the coin bounce between $4 and $6 until February 20th.

From there, 1INCH plummeted to $3.44 on February 23rd, losing more than 40% in just three days. Luckily, it bounced back quickly and then fluctuated between $3 and $5 until mid-March 2021, when it went back to above $5.

By March 23rd, it had dropped again to $3.7 then quickly rose to hit $6.2 on April 8th. It then traded between $5 and $6.3 until mid-April, when it suddenly dipped to $3.8 on April 25th.

Again, there was a steep ascent that sent 1INCH to its current all-time high price of $7.87 on May 8th, 2021. While this was an exciting rally, most investors saw an opportunity to sell their stash and make a profit.

As a result, the price began to fall quickly and bottomed out at $2.123 on 23rd May. Since then, 1INCH has had a rough time going above $4.2. The highest price it has achieved since reaching its peak value is $6.5 per coin on October 27th, 2021.

It dropped again and is currently trading at around $1.6 with a market valuation of $750 million and a fully diluted market cap of $2.4 billion. This places it as the 92nd largest cryptocurrency by market cap and dominates about 0.04% of the market.

1INCH Price Predictions For 2022 And 2023

This year has been pretty dramatic for 1INCH. Although the coin started trading towards the end of 2020, it picked up quickly and has managed to stay above waters despite unfavourable market conditions. 1inch has proved that there is a need for price aggregation, especially from DEXs platforms that might take advantage of unsuspecting traders.

2022 and 2023 are obviously going to be exciting for investors as we look forward to new developments. We also hope that the price is going to bounce back and take on another rally above its current all-time high.

We have looked at several price predictions, and as usual, we get a lot of mixed signals. However, the general agreement seems to be that 1Inch might be in for a bright future.

Wallet Investor gives a pretty pessimistic prediction. According to the site, 1Inch might only trade between $3 and $2 for the rest of 2022 and continue to go downwards moving forward. This is a pretty drudgy growth, and we hope we will see more promising figures. The coin is already trading above $4, and it would be really discouraging to see the same price one year later.

2023 will be even worse, according to Wallet Investor. Now, the coin will drop to ~$3 for most months and still won’t go above $5. In fact, from April to December 2023, Wallet Investor predicts that 1INCH will trade between $3 and $4. That is bearish, to say the least.

As usual, Gov.capital seem to always agree with Wallet Investor. Only this time, it is much more pessimistic because its prediction ends towards the end of May 2022 when according to the site, 1inch's value will be $0.

Priceprediction.net is not as pessimistic, but it is also not much optimistic. The site predicts that 1INCH will close 2022 at $4.43 or as high as $5.20. At the end of 2023, the token will be trading at between $6 and $8. This is a bit conservative, and we can expect more if the market is favourable.

The most optimistic 1INCH price predictions we have seen so far are from Digital Coin Price, which predicts that the token will close 2022 at $2.02 and 2023 at $2.34. At least there is some hope of 1inch going above its current price in the next two years.

Generally, we don’t recommend taking these predictions too seriously. 1INCH is highly volatile, and no one can accurately predict its price movement. The best thing you can do is do your own research and let the market take its course.

Don't Miss: 1inch Price Predictions

How To Invest In 1inch (1INCH)

There are several ways you can invest in the 1inch token (1INCH). The most common methods are:

Trading
Holding
Liquidity mining

Method 1: Trading 1inch

Trading is one of the most common ways to invest in 1INCH. This is because it allows you to take advantage of market speculation, which is one of the most basic ways an investor makes profits.

When buying 1inch, ensure that you buy them when prices are low and then sell when they are high. When done right, this method can yield huge profits for you.

There are several exchanges that allow you to buy and trade 1inch. These include

Binance
KuCoin
FTX
Huobi Global
eToro

These are the most reputable exchanges where you can trade 1inch tokens. But there are many others as well.

We recommend using eToro for a number of reasons. These include:

Futures Trading: When you trade 1inch on eToro, instead of buying the tokens outright, you can also invest in futures. This gives you a chance to maximize their profits by making the right trading decision based on current market conditions
Highly liquid: 1inch has been highly traded on eToro with a 24-hour trading volume of $4,907,797 USD. This is relatively high given the low market cap of 1INCH.
Safe and secure: All transactions on eToro are encrypted to ensure there is no data leakage during a transaction. Also, all traders' funds are held in escrow to ensure the safety of deposits.

To trade 1inch on eToro:

Visit www.etoro.com and create a free account
Deposit some funds into your account ($200 minimum)
Search for 1inch the click on the 'Trade' button
Enter the amount you want to spend on 1inch
Click on 'Open Trade'

Trading can be tricky for new investors because of the volatile nature of 1INCH. You need to have an in-depth knowledge of how cryptocurrencies work and good trading skills to ensure that you are on the profitable side.

That's why if you are just starting out, we recommend investing through holding instead of trading.

Method 2: Holding 1INCH

This is one of the safest methods for an investor to buy low and sell high. Remember there are no restrictions on how many tokens you can own, so you can HODL as many 1inch tokens as you can afford.

In order to HODL 1inch, you will need a wallet.

The best place to hold any coin is in a hardware wallet, such as Trezor or Ledger Nano S. They are one of the safest places to store cryptocurrencies because they are not online-based and, therefore, not vulnerable to hacking.

You can also use an ERC-20 compatible wallet like MyEtherWallet or the official 1inch wallet.

Another great strategy is to buy 1inch in ETH (Ethereum). If you can do this, it means that when the price of Ethereum goes up against the US dollar, the value of your tokens will also go up. By investing in 1inch tokens through ETH, you are hedging yourself against any possible volatility by buying low and selling high.

Method 3: Liquidity Mining

Instead of simply holding your 1INCH tokens in a hardware wallet, you can also stake them in a liquidity pool and earn some passive income. This is commonly known as liquidity mining.

The more 1INCH you stake, the higher the returns will be. Here is how you can start earning interest on your assets through the 1inch liquidity mining program.

How to Participate in the 1inch Liquidity Pool

Make sure you are a liquidity provider by joining one of the 1inch liquidity pools. To do this;

Navigate to the 1inch liquidity pool section
Connect your wallet
Choose one of the liquidity pools, then click on the 'Provide Liquidity' button or simply the '+' icon
On the 'Enter LP token amount to mint', indicate the amount of liquidity you want to provide. If you want to enter the maximum number of tokens allowed, just click on 'Max"
Next, click on 'Unlock', then select one of the options provided
Sign a transaction in your wallet and then wait for the tokens to be mined
Click on "Provide Liquidity' and then log into your wallet and wait as the transaction is mined
Go back to the Liquidity Protocol section. Here, you will find the pool you just provided under the 'Farming' tab
Click on 'Deposit'
Click on 'Balance' on the upper right corner, then enter the amount of LP tokens you want to provide
Again, click on 'Unlock token' then select one of the options
Check your wallet to confirm the transaction
Click on the 'Deposit' button and then finally sign the transaction in your wallet.

The liquidity providing process begins as soon as the transaction is mined. When this happens, you will start earning some passive income in 1INCH tokens!

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is 1inch A Good Investment?

The 1inch Network is creating a decentralized liquidity pool to pull the largest number of cryptocurrency traders. This will help increase volume and liquidity globally while giving individual users better prices on their trades. It's an amazing idea that could change the way cryptocurrency trading works forever.

As with any investment opportunity, it's important to look at many different factors before making a significant decision. The following are some of the factors to consider before investing in 1inch.

The Team

1inch was co-founded by Anton Bukov, a lead software engineer & architect and Sergej Kunz, who is also a Lead Fullstack Software Engineer & Architect. Both Bukoz and Kunz have extensive experience working with blockchain projects.

The network also has an extensive team of 65 contributors with more than 20 backers. In addition, 1inch prides itself on more than 20 partners and has a presence in more than 10 countries.

However, the team still needs to work on one key thing; building the community. Without a strong following or open-source solution, 1inch Network may struggle to really get off the ground.

Tokenomics

The 1inch Network makes use of its 1INCH token. This is an ERC20 utility token that serves to provide liquidity, governance and other features on the platform. At this point, users are able to stake their tokens to earn interest through the network's liquidity mining program.

As more users join the platform, the demand will increase for the 1INCH token. This will, in turn, drive up the price and create a positive feedback loop that should take place well into the future.

Competition

Yes, there are several exchanges where you can buy cryptocurrencies. However, unlike other decentralized exchanges on the market, the 1inch Network comes with its own unique features. For example, it has a self-regulating liquidity pool which means there are always buyers and sellers on the network, improving liquidity for everyone involved.

Another feature of 1inch is its governance model that allows users to vote for new features or moderators who can help arbitrate disputes in cases of market manipulation.

The 1inch Network is going to be a major player in the cryptocurrency world, but it's still very early in the development process. While there is a clear need for a decentralized exchange that can provide liquidity and better prices, there are still a number of hidden costs associated with the use of these types of services.

At the moment, 1inch is an exciting new project that's well worth keeping your eye on. In order for it to really succeed, though, they need a strong community behind them who will help push the project forward and support their long-term vision.

Conclusion: So, Should I Buy 1INCH

1inch has a promising future and many benefits. It is also working closely with regulators to ensure that the network has a long lifespan.

It remains one of the most popular services for cryptocurrency traders around the world. The system gets off the ground through token staking, which helps ensure liquidity within its ecosystem. This can create an incredibly strong feedback loop that can take the price of 1inch very high.

At this point, there are still a number of issues to work out, including building up their community and becoming more transparent in order to gain trust within the cryptocurrency industry. Only time will tell whether It is worth investing in 1inch or not. The long-term outlook for this project looks promising, but the best thing to do is research as much as possible before making any decisions.