The demand for decentralized exchanges has been growing steadily which can be seen by the increase in the Total Value Locked (TVL) across DEX. 1inch exchange is a DEX and the amount of new investors in 1inch has been rising which can be seen by the increase in 1INCH price.
1inch is a liquidity aggregator. This aggregation reduces the slippage in orders and users can comfortably trade high volumes without the burden of order slippage.
How does 1inch work?
1INCH combines the liquidity of other exchanges via smart routing which is called as liquidity aggregation. As a result of this, the best price for buying and selling an asset is presented to the users. The orders placed can be split across different exchanges to reduce slippage and provide the best price to the users.
1inch is a non-custodial exchange. The funds will always remain in the user’s wallet. User can link their Ethereum based wallet to 1inch and all trades will be routed via the exchange directly to and from the user’s wallet.
Transactions on Ethereum blockchain are very expensive. Users have to pay gas fee for every transaction and this fee changes depending on network congestion. 1inch reduces transaction costs by utilizing Gas Token. This token stabilizes the price of gas.
Users can directly insure their smart contracts through Nexus Mutual on 1inch.
1INCH is the governance/utility token of 1INCH exchange. With the increase in the number of users on 1INCH, the demand will soon be reflected in 1INCH price.
1INCH/USD – Price Prediction
1INCH is currently trading above the 0.618 fib zone of $3.64. As long as 1INCH stays above $3.64, we could see a move towards $3.82, $4.05, $4.72 and $5.79. If the support of $3.64 breaks, we could see a drop towards $3.39, $3.27, $2.97 and $2.70.
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