Decentralized finance (DeFi) continues to reshape how users interact with digital assets, and at the forefront of this movement is 1inch Network — a powerful decentralized exchange (DEX) aggregator designed to maximize trading efficiency. Whether you're a seasoned trader or new to the world of crypto, understanding how 1inch works and how to effectively use it can significantly enhance your trading experience.
This guide dives into everything you need to know about 1INCH, from its core functionality and technology to real-time metrics and smart trading strategies.
What Is 1inch Network?
1inch Network is a decentralized exchange (DEX) aggregator that scans multiple liquidity sources across various blockchains to find the best possible prices for token swaps. Unlike traditional DEXs that rely on a single liquidity pool — such as Uniswap or SushiSwap — 1inch splits trades across multiple platforms to minimize slippage, reduce fees, and improve execution speed.
This means when you want to swap one token for another, 1inch doesn't just check one exchange. Instead, it analyzes dozens of protocols in real time, including:
- Uniswap
- Curve
- Balancer
- DODO
- Sushiswap
…and many others.
By leveraging deep liquidity discovery, 1inch ensures users receive optimal rates without manually comparing platforms.
👉 Discover smarter ways to trade DeFi tokens with advanced routing tools.
Why Use 1inch for Crypto Trading?
For traders dealing in large volumes, even minor inefficiencies can lead to significant losses due to slippage or poor pricing. That’s where 1inch shines.
Traditional DEX users often face two key challenges:
- Fragmented liquidity: Token pools are spread across different exchanges.
- Price volatility: Rates change rapidly based on pool depth and market activity.
1inch solves both issues through intelligent aggregation. Here's why traders choose 1inch:
- Lower slippage: Trades are split across multiple venues to avoid draining a single pool.
- Better rates: The algorithm finds combinations that yield higher output than any single exchange.
- Gas optimization: On Ethereum and EVM-compatible chains, 1inch reduces gas costs by bundling operations efficiently.
- User-friendly interface: No technical expertise needed — optimal routing happens behind the scenes.
Whether you're swapping stablecoins or moving between volatile assets, 1inch streamlines the process while saving you money.
The Power Behind 1inch: Pathfinder Algorithm
At the heart of 1inch’s success is Pathfinder, its proprietary route-finding engine. Think of Pathfinder as a GPS for crypto trades — it calculates the most efficient path from your input token to your desired output.
Here’s how it works:
When you initiate a swap — say, converting ETH to WBTC — Pathfinder evaluates thousands of potential routes across integrated DEXs. It considers:
- Current liquidity levels
- Trading fees
- Expected slippage
- Network gas costs
Then, it returns a recommended route (or combination of routes) that delivers the best net return after all costs.
For example:
- Route A: ETH → USDC → WBTC via Uniswap + Curve
- Route B: ETH → DAI → WBTC via SushiSwap + Balancer
- Route C: Direct ETH → WBTC via a less liquid pool
Pathfinder selects the most cost-effective option — sometimes even splitting your trade across several paths simultaneously.
This level of automation removes guesswork and empowers users to trade confidently, knowing they’re getting top-tier execution.
Who Created 1inch?
1inch was founded by Russian developers Sergej Kunz and Anton Bukov. The project originated during a 48-hour hackathon in New York City in 2019, where the duo built the initial prototype in just over two days.
Despite its rapid development, the platform demonstrated clear value: better pricing through smart routing. The project gained immediate traction within the DeFi community and has since evolved into one of the most trusted DEX aggregators globally.
Today, 1inch supports multiple blockchains, including Ethereum, Polygon, Arbitrum, Optimism, BNB Chain, and more — making cross-chain swaps accessible and efficient.
Key 1INCH Token Metrics (As of July 4, 2025)
Understanding the economic fundamentals of the 1INCH token is crucial for investors and traders alike. Below are key data points:
Market Capitalization: $247M
Market cap reflects the total market value of all circulating 1INCH tokens. Calculated by multiplying the current price by circulating supply, this metric helps assess the token’s relative size in the broader crypto ecosystem.
Daily Trading Volume: $4.6K
Trading volume indicates market activity and liquidity. While current volume appears modest, it can fluctuate based on market sentiment, new integrations, or protocol upgrades.
Total Supply: 1.5 Billion
The total supply of 1INCH is capped at 1.5 billion tokens, with the full amount already in circulation as of July 2025.
Circulating Supply: 1.5 Billion
All issued tokens are currently available for trading and use within the ecosystem. This transparency supports long-term planning for stakeholders.
These figures provide insight into the token’s health and adoption trends within decentralized finance.
👉 Explore how DeFi platforms analyze tokenomics for smarter investment decisions.
Frequently Asked Questions (FAQ)
What is a DEX aggregator?
A DEX aggregator combines liquidity from multiple decentralized exchanges to offer users better prices and lower slippage than any single platform could provide alone.
How does 1inch make money?
1inch earns revenue through a small protocol fee on certain trades (optional for users). Additionally, it generates income via yield farming, staking rewards, and enterprise API services for institutions.
Is 1inch safe to use?
Yes. As a non-custodial platform, 1inch never holds your funds. All transactions occur directly from your wallet (e.g., MetaMask, Phantom), ensuring full control over your assets.
Can I stake 1INCH tokens?
Yes. Users can stake 1INCH in official liquidity pools or participate in governance by locking tokens via the ve1INCH model, which enhances voting power and earns protocol rewards.
Does 1inch support cross-chain swaps?
Absolutely. With native support for Ethereum, Polygon, Arbitrum, Optimism, BNB Chain, and others, 1inch enables seamless multi-chain trading without relying on third-party bridges.
Where can I buy 1INCH?
You can buy and trade 1INCH tokens on major crypto platforms like Phantom and other leading exchanges that support DeFi tokens.
Maximize Your DeFi Strategy with Smart Tools
As decentralized finance grows more complex, tools like 1inch become essential for efficient trading. By automating best-price discovery and optimizing transaction paths, 1inch removes friction from the swapping process — saving time, reducing costs, and improving outcomes.
Whether you're executing large trades or simply exploring new DeFi opportunities, integrating platforms like 1inch into your workflow offers tangible benefits.
👉 Start optimizing your crypto trades with intelligent routing today.
Remember: Always do your own research before investing or trading any cryptocurrency. Prices and conditions change rapidly in DeFi markets. Stay informed, use trusted tools, and prioritize security at every step.