The market of decentralized exchanges (DEXs) has shown a favorable growth rate in recent years, and with it, projects like 1inch (1INCH) are emerging to respond to the increasing demand for DEXs. 1INCH is the native ERC-20 type token that plays a key role in the 1inch system, which acts as an aggregator for DEXs. 1inch is hosted on the Ethereum network.

The 1inch system provides the most convenient route for swapping tokens on DEXs by finding the best prices for 1inch users. DEXs allow users to exchange crypto without third parties, while 1inch hosts liquidity pools where users can deposit crypto funds and earn 1INCH based on their participation.

In the short time, it’s been on the market, the price of 1INCH has already seen significant change, and if you want to know why then you’re in the right place. We’ve compiled everything you need to get a better understanding of the intricacies of 1INCH price – and the factors that influence it.

1inch Price History

The price of [guidelink 1inch] (1INCH) is subject to constant change, following trend reversals and the high volatility that characterizes the still “immature” cryptocurrency market. Due to the high levels of volatility, 1inch and other cryptos may change value radically and within short periods.

The 1INCH token was issued in 2020, representing a relatively novel asset in the market of cryptocurrencies. At its launch, 1INCH traded as high as $4, before reaching a low at $1 only a couple of days later. The dip was followed by an all-time low (ATL) at the price of $0.74 at the end of December.

January 2021 brought a rebound in the form of a collective trend that pushed all major cryptos to either new highs or higher prices compared with the previous year. 1inch price was around $1.50 at the beginning of 2021, before rising to about $5 at the end of January. The first days of February brought more upside for 1inch, with increasing trading volumes taking prices up to a peak of $6.56. After that, 1inch dipped once again, hitting a low for the month at under $3. 1inch then mostly traded between $3.50 and $5 in March 2021, before a surge to $6.80 in April was followed by a 46% pullback to $3.67. 1inch then rebounded in May 2021 to its all-time high (ATH) price of $7.94, after which prices crashed as low as $2.37 later in the month.

Analyzing 1inch Price History

1inch price history can be analyzed with many of the same techniques that are used to analyze the stock market and assets in traditional financial markets. Technical analysis (TA) is one of the most common analytic tools used to predict the future price of 1inch and other cryptos. TA relies on technical data such as price charts to make sense of the previous movement and to determine the future momentum of 1inch.

TA is often used in combination with fundamental and sentiment analysis to create price forecasts for 1inch. While TA involves technical data, the fundamental analysis examines the activity of the dev team, upgrades, updates, roadmap developments, market cap, total supply, mergers and partnerships, mainstream use, utility, the technology behind the 1inch project, and other important news and events. An active dev team contributes to the relevancy of the project, while positive news may cause the price of 1inch to rise. The max supply of 1inch also plays a crucial role in adding value to the token and the blockchain project as 1inch has a finite supply. The limited supply provides an anti-inflation mechanism, potentially making 1INCH a better store of value in the long term. No new tokens will be minted after the total supply is reached. Another factor that concerns the fundamental analysis of 1inch is the rising popularity of DEXs.

Sentiment analysis studies the overall sentiment in the market, rating opinion data as negative, positive, or neutral. For example, in the case of a positive event or news, 1inch value may rise as a result of positive sentiment among traders and investors, and vice versa in the case of negative news. Around the time that 1inch reached an ATH, the 1INCH team expanded to Polygon (MATIC), adding more liquidity protocols, including Sushiswap, Curve, Aave V2, Quickswap, and Cometh. The 1inch team also announced its plan to add even more liquidity protocols for users in the future, which could positively affect the price.

Factors influencing the Price of 1inch (1INCH)

A great number of specific factors may influence the price of 1inch (1INCH). One of the determining factors for a 1inch value is its finite supply. Since 1inch has a limited supply, the crypto represents a better store of value while protecting the asset’s value from inflation.

The price of 1inch can also be affected by changes in the wider economy, such as the influence of the COVID-19 pandemic or the collective rebound that commenced in 2021. In the first days of 2021, many cryptos reached new ATH prices, while most cryptos mitigated losses recorded in 2020 with dominant bullish momentum, despite the frequent dips and trend reversals that come with volatility. 1inch also hit an all-time high in 2021 after recovering from a bearish period in 2020.

Project developments and positive news can influence the price of 1inch (1INCH) too. Alongside the aforementioned expansion to Polygon (MATIC) that allowed 1inch users to use more liquidity protocols for swapping tokens on decentralized exchanges at the best prices, the 1inch team also launched new wallets for iOS users. The team is actively working on improvements and new products relating to the DEX aggregator and its token 1INCH, influencing the price in a positive way. A leading crypto platform for institutional investors, Anchorage Digital, also announced support for 1inch. Institutional investments could push the price of 1inch upwards.

The rising popularity of DEXs and the fast development of decentralized finance (DeFi) are also important factors that may determine the market price of 1inch to some extent.

Live 1inch Value and Market Cap

The live price of 1inch changes from one moment to the next and is in constant flux in accordance with active market changes, trend reversals, and the presence of volatility in the cryptocurrency market. The live price is dictated and defined by the balance between the buying and selling activity of traders, which is expressed in trading volume.

Due to its high volatility, 1INCH price may change radically within a short period to reflect sudden changes in momentum. The market cap is equal to the number of 1inch tokens in the circulating supply multiplied by the live 1inch price. The market cap ranks the crypto compared with its crypto peers and defines its market share based on the total value of all circulating tokens.

1inch Price FAQ

What is the 1inch total supply?

1inch token has a finite supply that is limited to 1.5 billion 1INCH tokens. The limited supply acts as an anti-inflation mechanism.

What is 1inch used for?

1inch is a DEX aggregator that finds and picks the best routes for swapping tokens and provides liquidity to enable tokens to be exchanged at the most favorable rates. 1INCH tokens can be earned by users who provide liquidity to the system and also play a major role in the governance of the 1inch platform. As the popularity of intermediary-free DEXs is on the rise, 1inch may become a more valuable asset as a result.

Conclusion

1inch is a relatively new project and a novel token that taps into the potential of the DeFi sector and the rising popularity of DEXs. The 1inch system finds and picks the best routes for exchanging tokens at the most favorable prices across available DEXs, which include the swapping protocol created by the 1inch dev team, Mooniswap. As the sector of DeFi is developing rapidly, 1inch has a chance to become one of the most prominent projects of its kind.

The price of 1inch is in constant flux and is susceptible to frequent changes that are defined by a multitude of factors that can influence the value of 1inch. As the price of 1inch changes, traders and investors can profit from the difference between buying and selling prices.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of 1inch and cryptocurrencies!