1inch experienced a substantial surge in volumes and market dominance in the fourth quarter of last year amidst a broader market resurgence,
According to Messari’s report, the popular DEX aggregator recorded over $30 billion in executed volume and a commanding 64% share of the Ethereum DEX aggregator market. The nearly doubled volume from external sources suggests increased adoption of 1inch as a backend solution and the expansion of aggregator platforms.
1inch Sees Increased Trading Activity in Q4
Transaction growth is primarily attributed to new products, as evidenced by increased activity in the Limit Order Protocol (LOP) and 1inch Fusion, while transactions in the Aggregation Protocol witnessed a decline during the quarter.
The share of 1inch trades conducted on Uniswap V3 and V2 saw an increase by 8 and 3 percentage points, constituting 40% of trades and 8% of trade volume, respectively. The volume generated by 1inch on these two Uniswap versions rose from $5.6 billion in Q3 to $10 billion in Q4, Messari’s report noted.
The share was mainly derived from Curve and Dodo, the second and now sixth most common execution venues. PancakeSwap continued to receive over $1 billion in trade volume from 1inch for the second consecutive quarter, accounting for 7% of 1inch’s total volume in Q4.
During the period, 1inch experienced notably greater volume growth compared to its counterparts, leading to an expansion of its market share from 59% of trades in Q3’23 to 63% in Q4’23.
The sole significant competitor to gain market share in Q4 was CoW Swap, holding 11% of the aggregator volume on Ethereum during the quarter. ParaSwap and 0x, in turn, held 11% and 10% of the aggregator volume, respectively, in Q4.
1inch DAO
Throughout Q4, the 1inch DAO continued its strategic treasury management, diversifying its stablecoin holdings by swapping a million USDC for DAI. These funds were then deposited to earn interest as sDAI, constituting the first reallocation since the Q2 deposit of 1 million USDC in Aave for interest.
On the expenditure front, the DAO used slightly over $1 million in three distinct transactions. Notably, on December 30, $890,000 USDC was allocated to fund support services for users within the 1inch Network.
Meanwhile, the staked amount of 1INCH saw a 7% increase in the fourth quarter.
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