Ethereum Network Sees $500B Trading Volume Surge with 1inch Protocol

Key Points

• Decentralized exchange aggregator 1inch Network announced it has processed $500 billion in trades on the Ethereum network since its launch in 2019.
• The protocol’s total activity figures vary between different analytics platforms, with some showing a cumulative volume of approximately $235 billion across all blockchains.

Decentralized exchange (DEX) aggregator, 1inch Network, has reported a significant trading volume milestone. The platform has processed trades worth $500 billion on the Ethereum network since its inception two years ago. The update was shared on October 8.

The recent announcement adds to a somewhat complex picture of the protocol’s overall activity. On July 15, the project revealed it had surpassed a total swap volume of $700 billion across all chains. However, these self-reported figures contrast with data from various third-party analytics platforms. For example, DeFiLlama reports a cumulative volume of around $235 billion across all blockchains.

Volume Discrepancies and Market Competition

Another analytics platform, Dune Analytics, reports a total trade amount of over $716 billion. The differences in these figures are likely due to varying data aggregation start dates and methodologies. The 1inch team has been contacted for clarification but has yet to respond.

The milestone comes as 1inch continues to lead the DEX aggregator space in total volume, despite a highly competitive market. While 1inch is the established leader, other protocols are gaining traction. Reports from January 2025 showed that CoW Swap captured over 26% of the market share on Ethereum. The rise of dark pools on Solana further illustrates the fierce competition across the DeFi landscape.

Economic Questions and Governance Issues

In addition to market competition, the protocol faces economic questions regarding its native token and governance structure. The 1INCH token has a value capture mechanism, but it’s indirect and has been a point of frustration for many holders.

According to the protocol’s documentation, users must lock their tokens to receive “Unicorn Power,” which can then be delegated to resolvers who share arbitrage profits. The core complaint from the community is the disconnection between this system and the protocol’s actual trading fees. Rewards are dependent on the success of third-party resolvers, not the platform’s trading volume, disconnecting the token’s value from the protocol’s success.

These concerns are not new for the project. Discussions within the governance forums as far back as 2022 show debates over using the DAO’s treasury to directly reward stakers. Those proposals faced pushback from community members who argued the DAO first needed a self-sustaining revenue model to avoid depleting its funds.

These long-standing concerns are mirrored in the 1inch DAO’s current state, which has a treasury of around $10.9 million. With funding from 1inch Labs reportedly discontinued two years ago, the issue of its long-term viability remains unresolved. The protocol also experienced a security setback in March 2025, when an exploit resulted in a $5 million loss.