State of 1inch Q2 2024

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Key Insights

Performance Analysis

As the leading DEX aggregator for most EVM-based Layer-1 chains and Layer-2 rollups, 1inch’s trading volumes are mainly influenced by wider market activity. According to Messari’s State of Smart Contract Platforms Q2 2024 report

The majority of 1inch Aggregation Protocol volume occurs on Ethereum. Total volume on Ethereum was up 17% QoQ from $19.73 billion to $23.06 billion. However, Ethereum’s share of Aggregation Protocol volume was flat in Q2, remaining at 68%. The biggest percentage gainer in Q2 was Base, with total quarterly volume increasing 280% from $0.70 billion to $2.68 billion. In Q2, Base emerged as a leading L2 ecosystem, benefiting from popular projects such as Degen Chain

In Q2, the share of 1inch Aggregation Protocol volume executed through Uniswap V2 & V3 liquidity pools increased 26% QoQ to $14.15 billion or 42% of 1inch Aggregation Protocol volume (up 8% QoQ from 39%). However, growth in Uniswap V2 volumes (up 27% QoQ) outpaced growth in Uniswap V3 volumes (up 26% QoQ). This is perhaps due to the popularity of memecoins in Q2

Resolvers are a key part of 1inch’s Fusion Protocol, an intent-based DEX standard, as they execute the orders placed by users. Last quarter

Daily average transactions on 1inch’s Aggregation Protocol increased for the second straight quarter, ending the quarter at 177,100 daily average transactions (up 64% QoQ from 107,700). Broken down by chain, 1inch’s Base deployment was responsible for most of the growth in Q2. 1inch Aggregation Protocol transactions on Base grew 677% QoQ from 0.69 million to 5.34 million, making it the top blockchain by transactions for 1inch. Furthermore, it accounted for 32% of all transactions in Q2.

Active addresses on 1inch’s Aggregation Protocol have seen consistent growth alongside the return of broader market activity. Q2 marked the third straight quarter of growth as daily average active addresses increased 33% QoQ from 64,900 to 86,400. Similarly to transactions, lower-cost blockchains represent an outsized share of active addresses when compared to volume on 1inch.

1inch has historically been the top DEX aggregator on Ethereum. Q2’24 was no different as it accounted for 56.0% of all DEX volume on Ethereum routed through an aggregator. The only other aggregator with a market share greater than 10% in Q2 was CoWSwap (down 14% QoQ to 14.2%). Notably, aggregators KyberSwap (up 112% QoQ to 9.6%) and Odos (up 300% QoQ to 4.1%) did make significant gains in Q2. However, their gains in market share did not come at the expense of 1inch as its market share remained essentially flat QoQ. Combined, the top three aggregators (1inch, CoW Protocol, and KyberSwap) accounted for 79.8% of volumes.

The 1inch DAO continues to be mindful of spending while still allocating to growth opportunities for all 1inch users and participants. In Q2, the DAO approved two separate payments for a total of $250,000:

After rallying over the past two quarters, 1INCH’s circulating market cap corrected, decreasing 29% QoQ from $707.7 million to $500.7 million. Despite this correction, 1INCH is still up 67% from Q2’23.

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