Key Points
- 1inch Network, a decentralized exchange aggregator, announced it has processed $500 billion in trades on the Ethereum network since 2019.
- The platform faces competition and questions about its native token and governance structure.
1inch Network, a decentralized exchange (DEX) aggregator, has revealed that it has processed $500 billion in trades on the Ethereum network since it was established in 2019. The update was shared on October 8.
The recent announcement contributes to an intricate understanding of the protocol’s overall activity. On July 15, the project declared it had exceeded $700 billion in total swap volume across all chains. These self-reported figures stand in contrast to various third-party analytics platforms. For example, data from DeFiLlama shows a cumulative volume of around $235 billion across all blockchains.
Discrepancies in Data
A dashboard on Dune Analytics reports a total trade amount of over $716 billion. The discrepancies may be due to different data aggregation start dates and methodologies. The 1inch team was contacted for clarification but has not yet responded.
The achievement comes as 1inch continues to lead the DEX aggregator space in total volume, navigating a progressively competitive market. While 1inch is the established leader, other protocols are gaining traction. Reports from January 2025 showed that CoW Swap captured over 26% of the market share on Ethereum. As new models, such as the rise of dark pools on Solana, demonstrate, competition remains intense across the DeFi landscape.
Token and Governance Concerns
In addition to market competition, the protocol faces economic questions regarding its native token and governance structure. Although the 1INCH token has a value capture mechanism, it is indirect and has been a source of frustration for many holders.
As per the protocol’s documentation, users must lock their tokens to receive “Unicorn Power,” which can then be delegated to resolvers who share arbitrage profits. The community’s main complaint is the disconnect between this system and the protocol’s actual trading fees. Rewards are dependent on the success of third-party resolvers, not the platform’s trading volume, disconnecting the token’s value from the protocol’s success.
These issues are not new for the project. Discussions within the governance forums as far back as 2022 show debates over using the DAO’s treasury to directly reward stakers. These proposals faced resistance from community members who argued the DAO first needed a self-sustaining revenue model to avoid depleting its funds.
These long-standing concerns are reflected in the current state of the 1inch DAO, which has a treasury of around $10.9 million. With funding from 1inch Labs reportedly discontinued two years ago, the issue of its long-term viability remains unresolved. The protocol also experienced a security setback in March 2025, when an exploit resulted in a $5 million loss.
