The 1-inch cryptocurrency token recently hit a record high when it reached the 500 million mark in terms of circulating supply. As such, no one should be surprised that the value of this token has decreased quite a bit in the process. After all, a rapid leakage of supply exceeding demand will cause prices to fall.
However, the timing of the opening of the extra 1-inch crypto tokens was kind of a coincidence. The cryptocurrency markets haven’t been so hot lately. So it was a temporary decrease in value Especially In line with other markets.
Moreover, it should be noted that this should not be seen as long-term bad news for its holders. Most of these tokens were sold to institutional investors last December. The 1-inch foundation has raised $175 million in funding in the process.
This is good news for the 1inch network and for the popular decentralized macro exchange whose powers it has. Any exchange is only as good as the services it provides. The additional funding of $175 million could help bring in many new innovations.
While it doesn’t seem like much has been added to the exchange since the last funding round, the use of 1-inch dApps has skyrocketed. This bodes well for the 1-inch cipher that helps power it.
The 1″ cipher token use case is becoming more and more useful
In the lead-up to the 1inch Network Series B funding round that raised $175 million, 1inch had close to 1 million users on the Ethereum network. And 195,000 people have used it in the last 30 days. Since then, the one million user limit has been crossed. Even more impressive is that the number of people who have used it in the past 30 days has grown to over 779,000 people.
This is an impressive growth. And as the 1-inch cryptocurrency is a symbol of governance and utility for the 1-inch network, this kind of growth could mean big things for its value. Especially if 175 million USD is put to good use.
According to a press release, the funding will be used to help traditional financial institutions enter Decentralized Finance (DeFi). The 1-inch team will also add new protocols and add new utilities to the 1-inch cipher.
Growth is almost always good. But this is especially true when the project is able to bring dozens of new investors into the fold. Especially when some of those investors include the likes of Jane Street, VanEck, Celsius, and Gemini Frontier Fund.
“While continuing to keep the existing DeFi audience happy by offering the latest products, 1inch also aims to become a gateway for organizations that want to be part of the DeFi space,” said 1inch Network co-founder Serge Koons. Press release. Then note:
“The next trillion dollars in assets entering DeFi will come from institutions, not retail users, and 1 inch wants to make it easier for them to enter,” he adds. “We have already started working in this direction by attracting some of the key players from the traditional financing markets, and this collaboration will accelerate over the next few years.”
leveling the playing field
The 1-inch network is set up to provide investors with easy access to liquidity across various protocols and blockchains. And as you can see on his dApp, he managed to do exactly that. Building channels that connect a variety of liquidity pools has the potential to provide simplified access to a myriad of assets in the crypto verse. Moreover, it can lower costs in the process.
Some investors may reject the idea of a protocol that makes it more accessible to institutional and casual investors. But the increased net exposure is likely to be positive for investors of all classes.
Cryptocurrencies are not a secret club anymore. It’s out in the open. Crypto hedge funds are now a thing. Crypto.com has a Visa card that allows storing native CRO ciphers. The Federal Reserve has acknowledged that it is not a concern for financial stability. Even Citadel Securities targeting meme stocks appears to be entering the crypto battle now. This is despite the company’s CEO referring to the so-called “crypto mania” as a jihadist call against the dollar. But hey, it’s hard to ignore the spigot of possibilities streaming from the crypto world…even for a billionaire.
All of this could lead to a very bright future for both 1-inch encryption code and the network it supports. If this becomes the de facto way for institutional investors to enter the crypto verse, who is to say how high it can go?
In the last month, 1inch has grown to become one of the best decentralized exchanges out there. It is second only to Uniswap by some estimates. Partnerships secured 1 inch have certainly led to some of that growth. But this story is likely to be more than just that.
Bottom line on 1-inch encoder
When it comes to reporting and investing, you can do much worse than keep track of money. There is evidence that a lot of money may be coming through the network’s 1-inch pipeline. And it wouldn’t be hard to imagine that some of that money will also be funneled into the 1-inch crypto token. As a governance token, card holders will get a seat at the table to help define current and future 1-inch network protocols. This may be a useful bench for sitting for those who will use it often.
Is 1-inch cryptocurrency heading to the “moon too?” We’ll leave this question to hyperbolic YouTubers and Twitter feeds to make this call. So we’ll keep things flat and suggest 1-inch encryption can Turn into a profitable investment. But that depends on two big factors from our point of view…
First, we hope to see an increasing number of networks added to the exchange over time. Second, we’ll see further evidence that institutional money is indeed coming through the 1-inch network. But by the time this evidence emerges, it is unlikely that the 1-inch cryptocurrency will remain below $2.50. To see how crypto investments can grow, check out our crypto calculator.
About Matthew McCuskey
Matthew McCowsky is a senior research analyst and writer at Investment U. He has been studying and writing about markets for 20 years. Equally comfortable identifying stocks of value since he enjoys discounts in the crypto markets, Matthew started mining bitcoin in 2011 and has since sharpened his focus on the cryptocurrency markets as a whole. He graduated from Rutgers University and lives in Colorado with his dog Dorito.