Why Is 1inch (1Inch) So Cheap?

Last Updated February 3rd 2022
6 Min Read

Will 1Inch prices bounce back, and is the DeFi token even worth buying?

The majority of crypto experts and investors believe that 1Inch is cheap today because it is a relatively new DeFi token. Despite its innovativeness, 1Inch is yet to carve a niche for itself in the crypto market, and its price action has been rather shaky, both of which decelerated its demand and suppressed possible material price breakout. 

At the time of writing, 1Inch is trading around $1.6 and has a live market capitalization of $750 Million. This, according to many crypto experts, implies that 1Inch is massively undervalued, especially when you consider the massive potential posed by its underlying DEX aggregation protocol.

The upside to 1Inch being massively undervalued is that its price will most likely rise and post astronomical value gains over the next few years.

The updated forecast by CryptocurrencyPricePrediction website, for instance, states that 1Inch’s value will appreciate by more than 275% to reach $6.04 by June 2022 and by 2000% to reach $50 in the next 5 years, and by 5870%+ to reach $95.59 by 2030.

In this 1Inch investment guide, we will be exploring the reasons why 1Inch is lowly priced and telling you if you should be stacking while it is still cheap.

First, though, we look at how 1Inch has performed in the past.

1inch (1Inch) Price History 2020 To 2022

1Inch started trading in the open markets on 25th December 2020 at $1.9. Within the first week of trading, its price first shot up and reached $2.6 but dropped as quickly to dip below $0.7 before attempting a recovery that had it go into 2021, selling for $1.3.

In the first 5 months of 2021, 1Inch token prices rallied alongside the larger crypto market and eventually set their current all-time high on 8th May when they reached $7.87. Throughout this period, everyone was convinced that 1Inch would break above $10 before the end of the year.

In the third week of May, however, the crypto market - that had played the biggest role in influencing 1Inch’s price action that far - crashed. The DeFi token immediately crashed by 400%, and by the 3rd week of July, it fell below its introductory price.

We are now in the last quarter of 2021, and though 1Inch has attempted a recovery, it could only climb to around $6.5 in October before crashing again and selling between $4.7 and $3.4 for the better part of November. This places its overall ROI around 200%, which groups it among the slowest growing cryptocurrencies. Since the overall market dip of December 2021, 1inch has been trying to recover and trading around the $1.6 mark.

But why have 1Inch prices failed to peak, and why can’t it escape its all-time high?

Check Out: What Is 1inch? Should You Invest In 1INCH And Where To Buy It?

Why Is 1inch (1Inch) So Cheap?

Crypto industry observers note that there a host of factors keeping 1Inch token prices trading at low prices and point out the most impactful as the fact that it is new, its huge correlation with the overall market, and limited use case.

Let us explain how these factors make 1Inch cheap.  

For starters, you will note - just by looking at the 1Inch price chart and comparing it with that of the overall market - that the DeFi token only rose when the market was rising and fell when it was falling. The fact that it is still new and hasn’t established any intrinsic value implies that it borrows heavily on the value of the larger crypto industry. This explains why it only rises when the investors are bullish about the overall crypto market and dips when these sentiments turn bearish.

The fact that both the 1Inch token and 1Inch network are new and operating in an equally new crypto niche - DeFi ecosystem - explains why it has limited use cases. The limited use case for the DeFi token then translates to low demand for the altcoin, which in effect means that there isn’t enough demand to push 1Inch token prices up.

Should I Buy 1inch (1Inch) While It Is Still Cheap?

Yes, because it has been described by different crypto experts as being one of the most promising DeFi tokens, implying that it has massive potential for value growth in the future. The larger section of these experts is banking on the upcoming DeFi explosion to propel 1Inch token prices to unimaginable heights. And when this happens, your 1Inch investment will grow tenfold or even more.

Technical analysts at PricePrediction.Net, for instance, indicate that you will most likely grow your investment by close to 6775% over the next 8 years if you buy 1Inch today, seeing that they expect it to reach $110 by 2030.

These sentiments are shared by analysts at ICOCreed, who expect 1Inch to grow by an almost similar margin over the next few years. By December 2030, they expect 1Inch to be trading above $95.

Put simply, you should consider buying 1Inch while it is cheap because its value is expected to shoot massively over the next few years, and so will your investment.

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

Will 1inch (1Inch) Bounce Back?

Yes, the majority of price prediction metrics - from expert opinions to technical analysis and even market sentiments - are confident that 1Inch will rebound and resume an uptrend.

Some, like the CryptocurrencyPricePrediction website, expect the bounce back to be quick and within the next few months. Their forecast of the DeFi token shows that 1Inch will end the year trading above $7 and break rise above its current all-time high in January 2023 before breaking above $10 for the first time ever at the beginning of February 2025.

Others have a rather conservative view of 1Inch token’s road to recovery and expect it to be rather slow. Crypto experts at Economy Watch, for example, argue that the DeFi token will “exhibit more of a gradual ascent rather than rapid growth.” They urge investors to be patient with the altcoin, adding that while it will most likely reach $7 in early 2022, its rise above the current ATH will take place sometime before 2025 when it gets to $10.

The majority of analysts and experts, however, maintain the 1Inch token’s rebound will be rather moderate and expect it to take effect in the next 3 to 5 years.

For example, the historically conservative forecasting website - DigitalCoinForecast - indicates that 1Inch will post moderate gains in the next 2 years and expect it to rise above $3.5 in 2024.

Crypto experts at Captain Altcoin are also confident that the 1Inch token’s rebound will be moderate. This is evidenced by the fact that while they expect 1Inch to rise above its current high in June 2022, they can only see it rising as high as $15 by December 2025.

Even Technical analysts at Trading Beasts trust that 1Inch will rebound soon. Their analysis shows that 1Innch will most likely rise above $3 around April 2023 and break above $5.5 by the end of 2025.

Don't Miss: 1inch Price Predictions

Conclusion: Why Is 1inch (1Inch) Cheap?

Well, no one single factor can be said to have the monopoly of keeping 1Inch trading at relatively low prices, instead of the DeFi token is cheap because of the interlace of both intrinsic and extrinsic factors that act on its price action. Crypto experts have, however, singled out the fact that it is new, has limited use cases, and is hugely correlated to the volatile crypto market.

There, however, is an overwhelming belief across the crypto community that 1Inch token prices will bounce back and continue rising for the next few years. The most optimistic are confident it will rise above its current ATH in 2022, but generally, everyone agrees that it will have bounced back and set course for new price heights within the next 5 years before eventually aiming for $100 by 2030. 

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

Read More:

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1Inch Price Prediction: Will 1Inch Rise In Value?