1inch saw a substantial increase in volumes and market dominance in the fourth quarter of last year amid a broader market resurgence.
According to Messari's report, the popular DEX aggregator recorded over $30 billion in executed volume and a dominant 64% share of the ethereum DEX aggregator market. The nearly doubling of volume from external sources suggests greater adoption of 1inch as a backend solution and the expansion of aggregator platforms.
1inch sees increased business activity in Q4
The transaction growth is primarily attributed to new products, as evidenced by increased activity in the Limit Order Protocol (LOP) and 1inch Fusion, while transactions in the Aggregator Protocol saw a decline during the quarter.
The proportion of 1inch transactions made on Uniswap V3 and V2 saw an increase of 8 and 3 percentage points, making up 40% of transactions and 8% of trading volume, respectively. The volume generated per 1inch on these two versions of Uniswap increased from $5.6 billion in the third quarter to $10 billion in the fourth quarter, according to Messari. report noted.
Participation came primarily from Curve and Dodo, the second and now sixth most common run venue. PancakeSwap continued to receive over $1 billion in trading volume from 1inch for the second consecutive quarter, accounting for 7% of 1inch's total volume in Q4.
During the period, 1inch saw notably higher volume growth compared to its counterparts, leading to an expansion of its market share from 59% of transactions in Q3 2023 to 63% in Q4 2023.
The only major competitor to gain market share in the fourth quarter was CoW Swap, which owned 11% of the aggregator volume on ethereum during the quarter. ParaSwap and 0x, in turn, held 11% and 10% of the aggregator's volume, respectively, in the fourth quarter.
1 inch DAO
During the fourth quarter, 1inch DAO continued its strategic treasury management, diversifying its stablecoin holdings by exchanging one million USDC for DAI. These funds were then deposited to earn interest as sDAI, marking the first reallocation since Q2's deposit of 1 million USDC into Aave for interest.
On the spending front, the DAO used just over $1 million across three separate transactions. Notably, on December 30, $890,000 USDC was allocated to fund support services for users within the 1inch network.
Meanwhile, 1INCH's staked amount saw a 7% increase in the fourth quarter.
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