Is 1inch (1INCH) A Good Investment?

Introduction

1inch exchange is a decentralized exchange (DEX) aggregator to help users discover the best trade prices for tokens. Instead of swapping tokens from a single liquidity pool of a DEX, 1inch will aggregate across different pools and suggest the most efficient way to trade tokens. If you are a trader trading a large number of tokens, you may not be aware of all the available liquidity across different DEXes in order to get the best price quote. The price quote offered by DEX fluctuates according to the liquidity pool at any given time. Also, when you are trading large sizes, every percentage of savings can be magnified with an optimal trading path. 1inch aims to solve all that in a single user-friendly interface.

How does 1inch work?

-Say that you want to buy some Wrapped Bitcoin (a synthetic version of Bitcoin) using Ethereum on a decentralized exchange. Look at different DEXes and you’ll find that the prices vary, as do the fees.

1inch’s algorithm finds the cheapest way to place that trade using all the different exchanges and liquidity protocols that can facilitate this trade. The cheapest way to place this trade may involve swapping your Ethereum between several different protocols and for several different currencies before it arrives at Wrapped Bitcoin. The advantage of doing this is that it may mean you can buy Wrapped Bitcoin at a cheaper price.

-1inch calculations happen under the surface. The proprietary Pathfinder algorithm maps out optimum terms for crypto swaps that may involve two, three, four, or more exchanges. The algorithm may split the transaction among multiple exchanges or providers to guarantee the best possible exchange rate.

1inch currently supports swaps among coins and tokens that conform to the ERC-20, ERC-721, ERC-1155, and BEP-20 standards. This accounts for most of the widely used cryptocurrencies on the market. 1inch notes that additional tokens could be supported via external extensions. But those details are not presented to users. The 1inch interface simply asks what kind of tokens you have and what kind you wish to purchase. The screen then shows you the best deal and a handful of other options. Click “swap now” and the transaction is executed. You are also offered a choice of standard, fast, or instant processing. If you’re willing to pay a higher gas fee, you can expedite the swap. High gas fees are a major concern these days. All 1inch transactions show you the gas costs and give you options for minimizing them. You can often save money on gas by paying the fees with 1inch’s CHI token. It’s a simple checkbox on the swap screen.

In addition to simple swaps, you can place a limit order by specifying the target prices for future trades or earn money by staking crypto funds to liquidity pools that are used by DEXes and groups of DEXes. The 1inch dApp clearly presents the returns you will earn for making your crypto funds available for a day, a week, or a month.

Financial Analysis:

1inch price today is $3.54 with a 24-hour trading volume of $157,523,248. 1INCH price is down -0.4% in the last 24 hours. It has a circulating supply of 180 Million 1INCH coins and a total supply of 1.5 Billion. At the time of writing this post (Oct 19, 2021), 1inch's Return On Investment (ROI) over the past year was 390%, underperformed in 'Decentralized Exchange Token (DEX), Number, Polygon Ecosystem, Automated Market Maker (AMM), Binance Smart Chain Ecosystem, Decentralized Finance (DeFi), Exchange-based Tokens' categories which had 390% growth over the past year. It's underperformed in the crypto market which had 13464% growth over the past year.

Another critical factor in the success of any project is gaining public attention. Our data shows that 1inch's Twitter account saw a growth of -100% over the last months in the number of followers, which is considerable. However, the Telegram channel users had an 8% growth over the last months.

Over the last five months, 1inch's Market Capitalization rank followed an overall declining trend, starting at the rank of 121-143 on July-Aug 2021, reaching 153 in Oct 2021. However, by the time of writing this post, 1inch's market cap rank is about 141, and its value is $624,923,524 Million. Moreover, its liquidity score is 59% above the market's average score, making it relatively easier to sell in bear markets.

You are saying that 1inch (1INCH) is the best cryptocurrency to invest in?

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