Why This Token Might Get Special Attention

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The 1-inch crypto token hit a benchmark recently when it hit the 500 million mark in terms of circulating supply. As such, it should come as no surprise that the value of this token dropped a bit in the process. After all, a rapid injection of supply that exceeds demand will drive prices down.

That being said, the timing of unlocking additional 1-inch crypto tokens was rather fortuitous. The crypto markets haven’t really been hot lately. Thus, its temporary drop in value was mostly in line with the rest of the markets.

On top of that, it should be noted that this shouldn’t be seen as long-term bad news for holders. Most of these tokens were sold to institutional investors last December. And the 1 inch foundation raised $175 million in funding in the process.

This is good news for the 1inch network and the increasingly popular decentralized global exchange it powers. Any exchange is only as good as the services it provides. And an additional $175 million in funding can help bring in a lot of new innovation.

While there doesn’t appear to have been many additions to the exchange since the recent round of funding, usage of the 1-inch dApp has grown significantly. And that bodes well for the 1-inch crypto token that powers it.

The use case of the 1-inch crypto token is becoming more and more useful

Prior to 1inch Network’s Series B funding round which raised $175 million, 1inch was approaching one million users on the Ethereum network. And there were 195,000 people who had used it in the last 30 days. Since then, it has passed the one million user mark. Even more impressively, the number of people who have used it in the past 30 days has grown to over 779,000.

That’s impressive growth. And because 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 used wisely.

According to a press release, the funding will be used to help traditional financial institutions access decentralized finance (DeFi). The 1 inch team will also add new protocols and add new utilities to the 1 inch crypto token.

Growth is almost always good. But this is especially true when a project is capable of attracting dozens of new investors. Especially when some of these investors include Jane Street, VanEck, Celsius and Gemini Frontier Fund.

“While continuing to cater to the existing DeFi audience by offering state-of-the-art products, 1inch also aims to become a gateway for institutions that want to be part of the DeFi space,” said the 1inch co-founder. Network, Sergej Kunz. A press release. He then noted:

“The next trillion dollars of assets entering DeFi will come from institutions rather than retail users, and 1inch would like to make it easier for them to enter,” he adds. “We have already started working in this direction by attracting some key players from the traditional financial markets, and this collaboration will only accelerate in the coming years.”

Level the playing field

The 1inch network aims to provide investors with easy access to liquidity through various protocols and blockchains. And as you can see from his dApp, that’s exactly what he’s achieved. Building channels that connect a patchwork of liquidity pools has the potential to provide simplified access to a myriad of assets in the crypto-verse. In addition, it can reduce process costs.

Some investors might balk at the idea of ​​a protocol that makes it more accessible to institutional and regular investors. But increased exposure is likely to be a net benefit for investors of all stripes.

Cryptocurrency is no longer a secret club. It’s in the open. Crypto hedge funds are a thing now. Crypto.com has a Visa card that allows staking its native CRO crypto. The Federal Reserve has acknowledged that they are not a concern for financial stability. Even meme-stock target Citadel Securities seems to be entering the crypto fray now. This is despite the company’s CEO calling the so-called “crypto-mania” a jihadist call against the dollar. But hey, it’s hard to ignore the faucet of possibilities pouring into the crypto world… Even for a billionaire.

All of this could lead to a very bright future for the 1-inch crypto token and the network it supports. If this becomes the de facto way for institutional investors to enter the world of crypto, who’s to say how far it might go?

Over the past month, 1inch has become one of the top decentralized exchanges. Second only to Uniswap by some estimates. The partnerships 1inch has secured have surely led to some of that growth. But there’s probably more to this story than that.

The basics of 1 inch cryptography

When it comes to reporting and investing, you could do a lot worse than follow the money. And there is evidence that a lot of money can flow through the 1inch Network pipeline. And it wouldn’t be hard to imagine that some of that money will also be directed to the 1-inch crypto token. As a governance token, holders will have a seat at the table to help decide current and future 1-inch network protocols. And it could be a useful seat for those who will use it the most.

Is 1-Inch Crypto Heading To “Too Much Moon?” We’ll leave that question to hyperbolic YouTubers and Twitter feeds to make that call. So we’ll keep things calmer and suggest that 1-inch crypto could turn out to be a lucrative investment. But it depends on two big factors from our point of view…

First, we hope to see more networks added to the exchange over time. Second, we would see for more evidence that institutional money is actually going through the 1inch network. But by the time this proof comes to light, the 1-inch crypto token is unlikely to still be trading below $2.50. To see how crypto investments can grow, check out our crypto calculator.

About Matthew Makowski

Matthew Makowski is a senior research analyst and writer at Investment U. He has studied and written about the markets for 20 years. Equally at home identifying value stocks and discounting crypto markets, Matthew began mining Bitcoin in 2011 and has since focused on the cryptocurrency markets as a whole. He graduated from Rutgers University and lives in Colorado with his dog, Dorito.

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