1inch Network’s Aggregator Reigns Supreme: Captures 59% of Total Volume, Surging Ahead in Q1 2023

According to the first quarter report of Decentralized Finance (DeFi) service provider 1inch, the network aggregator’s performance has hit the roof

In terms of aggregator volume, 1inch accounted for 59 percent of the total DEX volume and this signifies an outstanding growth from the 47 percent which was reported in Q4 of last year, hence a 12 percent increase quarter-on-quarter (QoQ).

.@1inch Network's aggregator continues to dominate volume.

The platform accounted for 59% of the total aggregator volume in Q1 of this year, up from 47% in Q4'22. pic.twitter.com/MQcq2yvYAa

— Messari (@MessariCrypto) May 28, 2023

1inch dominance reached a high point on Sunday, February 26th. On the said day, 1inch was responsible for about 71 percent of the total aggregator volume. It was, however, short-lived, as the aggregator hit a low of 48 percent four days later. This was at the same time when Solana (SOL) was hit hard and the ‘Solana Spaces’ was closed. Still, it is safe to say that 1inch has a stronghold on the aggregator volume market share.

At the same time, the 1inch Network had a 7 percent QoQ increase in the number of users across its different protocols

This summed up the total number of users to 2.59 million. Markedly, more dominance was from the Aggregation Protocol which represented 88% of the total users for 1inch Network in Q1. Also, the Limit Order Protocol with the Fusion mode which was launched last year, made significant advancement in terms of user adoption.

1inch Aggregator Thrives Amidst Several Chaos

The United States dollar-pegged stablecoin USDC de-peg which happened in March Q1 2023 led to volatility, and amidst this situation, 1inch recorded a single-day high in volume of over 4 billion. In that same March, 1inch hit its third-highest volume day excluding Ethereum (ETH)

By the end of Q1, the total volume was 37 billion. All these are indications that 1inch’s user base and the adoption of its protocol are spiking tremendously

The TerraLUNA crash of May 2022 and the sudden implosion of Bahamian-headquartered exchange FTX which happened in November were the only events that surpassed 1inch. It is believed that the Fusion mode influenced many of the changes which have been evident on the 1inch Network including the adjustments to governance and tokenomics.

1inch users now get to stake their 1INCH tokens for between one month to about two years after which they earn Unicorn Power. This reward can then be used for “network governance participation or delegated to other users or resolvers in exchange for rewards from resolver incentive programs.”

The disparity in user distribution among different protocols did not in any way affect overall usage of the 1inch Network as it was relatively stable in Q1. Both protocols were responsible for 263,000 daily active users (DAUs) in that quarter. A glance at the 30-day moving average (MA) for DAUs showed consistency in engagement across the platform as it ranged between 20,000 and 27,000 for most of the quarter.