The 1-inch crypto token recently hit a benchmark when it hit the 500 million mark in terms of circulating supply. Therefore, it should come as no surprise to anyone that the value of this token has decreased slightly in the process. After all, a rapid infusion of supply that exceeds demand will drive prices down.
That said, the timing of unlocking additional 1-inch crypto tokens was a bit fortuitous. The cryptocurrency markets haven’t exactly been hot lately. So it was his temporary drop in value mostly in line with the rest of the markets.
Also, it’s worth noting that this shouldn’t be seen as bad news in the long run for cardholders. Most of these tokens were sold to institutional investors last December. And the 1inch foundation raised $ 175 million in funding in the process.
That’s good news for the 1-inch network and the increasingly popular decentralized aggregate exchange it powers. Any exchange is only as good as the services it provides. And an extra $ 175 million in funding can help bring many new innovations.
While there doesn’t appear to be much to add to the exchange since the recent round of funding, the use of the 1-inch dApp has increased significantly. And that bodes well for the 1-inch crypto token that helps power it.
The 1-inch cryptographic token use case is becoming more and more useful
Ahead of the 1inch Network Series B funding round that raised $ 175 million, 1inch was approaching 1 million users on the Ethereum network. And there were 195,000 people who had used it in the past 30 days. Since then, it has passed the 1 million user mark. Even more impressive, the number of people who have used it in the past 30 days has grown to over 779,000.
It is impressive growth. And since the 1-inch crypto token is both the governance and utility token of the 1-inch network, this kind of growth could mean big things for its value. Especially if the $ 175 million raised is put to good use.
According to a press release, the funding will be used to help traditional financial institutions enter decentralized finance (DeFi). The 1-inch team will also add new protocols and new utilities to the 1-inch cryptographic token.
Growth is almost always good. But this is especially true when a project is capable of bringing dozens of new investors into the fold. Especially when some of these investors include the likes of Jane Street, VanEck, Celsius, and the Gemini Frontier Fund.
“While continuing to cater to the existing DeFi audience by providing cutting-edge products, 1inch also aims to become a gateway for institutions wanting to be part of the DeFi space,” 1inch Network co-founder Sergej Kunz said in a press release. He then noted:
“The next $ 1 trillion of assets that will go into DeFi will come from institutions rather than retail users and 1inch would like to facilitate entry for them,” he adds. “We have already started working in that direction by attracting some key players from traditional financial markets and this collaboration will only accelerate in the coming years.”
Level the playing field
The 1inch network has set out to provide investors with easy access to liquidity across various protocols and blockchains. And as you can see on his dApp, he managed to do just that. Creating channels linking a mosaic of liquidity pools has the potential to provide simplified access to a myriad of assets in the crypto-verse. Also, it can reduce costs in the process.
Some investors may be hesitant about the idea of a protocol that makes it more accessible for both institutional and regular investors. But more exposure is likely to be a net positive for investors of all kinds.
Cryptocurrency is no longer a secret club. It’s out in the open. Crypto hedge funds are a thing now. Crypto.com has a Visa card that allows staking of its native CRO cryptocurrency. The Federal Reserve has recognized that they are not a financial stability problem. The Citadel Securities meme stock target also appears to be entering the cryptocurrency fray now. This is despite the company’s CEO referring to the so-called “crypto-mania” as a jihadist appeal against the dollar. But hey, it’s hard to ignore the tap of possibilities coming out of the cryptocurrency world … even for a billionaire.
All of this could lead to a very bright future for both the 1-inch crypto token and the network it supports. If it actually becomes the way for institutional investors to enter the crypto-verse, who can say how high it could go?
Over the past month, 1inch has become one of the best decentralized exchanges around. Second only to Uniswap according to some estimates. The partnerships 1inch secured have certainly led to some of that growth. But there is probably more to this story than that.
The bottom line about 1 inch Crypto
When it comes to reporting and investing, you could be doing a lot worse than tracking money. And there is evidence that a lot of money could be coming through the 1-inch network pipeline. And it wouldn’t be hard to imagine that some of that money will also go to the 1-inch crypto token. As a governance token, holders will have a seat at the table to help decide on current and future 1-inch network protocols. And this could be a useful place to sit for those who will use it the most.
Is the 1-inch cryptocurrency heading “too much to the moon?” We’ll leave this question to the hyperbolic YouTubers and Twitter feeds to make that call. So we’ll keep things more balanced and suggest that 1-inch encryption I could prove to be a profitable investment. But this depends on two big factors from our point of view …
One, we hope to see an increasing number of networks added to the exchange over time. Second, we would see for further evidence that institutional money is actually coming through the 1-inch network. But when that evidence comes to light, it is likely that the 1-inch crypto token will still not be trading for less than $ 2.50. To see how cryptocurrency investments can grow, take a look at our Cryptocurrency Calculator.
About Matteo Makowski
Matthew Makowski is a senior research analyst and writer at Investment U. He has been studying and writing about markets for 20 years. Equally comfortable with identifying valuable stocks as discounts in cryptocurrency markets, Matthew began mining Bitcoin in 2011 and has since sharpened his focus on cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dog, Dorito.