What is 1inch (1INCH) crypto coin? A simple guide to the top DEX aggregator token

If you’ve ever tried swapping crypto on a decentralized exchange and ended up paying way more than expected, you’re not alone. That’s where 1inch comes in. It’s not just another crypto coin - it’s the behind-the-scenes tool that helps thousands of traders get the best possible price across dozens of decentralized exchanges. The 1INCH token is the fuel that powers this system, giving users voting rights and discounts while helping keep the whole network running.

What exactly is 1inch?

1inch is a decentralized exchange (DEX) aggregator. That means it doesn’t trade crypto itself. Instead, it looks at dozens of other DEXs - like Uniswap, SushiSwap, and Balancer - all at once, finds the cheapest rate for your trade, and splits your order across multiple platforms to save you money. Think of it like a flight search engine, but for crypto swaps. You tell it what you want to trade (say, ETH for USDC), and it finds the best route, often saving you 0.5% to 1.5% in slippage compared to going to a single exchange.

It started as a project built in just 48 hours during an ETHGlobal hackathon in May 2019. The founders, Surjey Kunz and Anton Bukov, noticed that traders were losing money because liquidity was spread too thin across different DEXs. One exchange might have a great price for ETH/USDC, but another had better liquidity for the exact same pair. 1inch solved that by connecting them all.

What is the 1INCH token for?

The 1INCH token is the native cryptocurrency of the 1inch Network. It’s not a currency you use to pay for coffee - it’s a governance and utility token. Here’s what it actually does:

• Vote on changes - Holders can propose and vote on upgrades, fee structures, and new features. In early 2023, over 14,700 wallet addresses participated in governance votes, up from just 3,200 the year before.
• Get fee discounts - Using 1INCH to pay for gas or trading fees gives you up to 25% off on the 1inch platform.
• Earn rewards - You can stake your 1INCH tokens to earn more, or provide liquidity to earn trading fees.

The total supply is capped at 1.5 billion tokens. About 39% of those were allocated to community rewards, meaning regular users like you can earn them by trading, staking, or participating in the network. Another 22.7% went to ecosystem development - funding new tools, integrations, and partnerships.

How does 1inch actually save you money?

Here’s a real example: Let’s say you want to swap $50,000 worth of USDC for DAI. On Uniswap alone, you might lose 1.2% due to slippage - that’s $600 gone before you even finish the trade. But 1inch’s Pathfinder algorithm scans over 200 liquidity sources in under a second. It might split your trade: $20,000 through SushiSwap, $15,000 through Curve, $10,000 through Balancer, and the rest through Kyber. The result? Slippage drops to just 0.4%. You save $400 on one trade.

This isn’t theoretical. In April 2023, one user saved $1,247 on a $150,000 ETH to USDC swap by using 1inch instead of going directly to a single DEX. That’s the kind of real-world savings that keeps traders coming back.

It also uses something called the CHI gas token to cut Ethereum transaction fees. When the network is busy, gas prices spike. CHI lets you store gas credits during low-traffic times and use them later, reducing fees by 20-40%. It’s like buying fuel when it’s cheap and using it when prices are high.

Is 1inch safe?

Yes - and here’s why. 1inch is non-custodial. That means your crypto never leaves your wallet. You sign the transaction yourself. No one holds your keys. The platform doesn’t have access to your funds. This is core to how DeFi works.

It also has one of the strongest anti-MEV (miner extractable value) protections in DeFi. MEV is when miners sneak in front of your trade to profit from your own order. 1inch’s Fusion mechanism hides your trade intent until the last possible moment, making it nearly impossible for miners to front-run you. Trail of Bits, a top blockchain security firm, called it “one of the most effective MEV mitigation strategies in production.”

Still, no system is perfect. Sometimes trades fail during Ethereum congestion - about 8.3% of transactions during peak times don’t go through. And if a token has almost no liquidity anywhere, 1inch can’t magically create it. But for most major tokens, it’s the most reliable way to trade.

Where can you use 1inch?

Originally built on Ethereum, 1inch now works on seven major blockchains: BNB Chain, Polygon, Arbitrum, Optimism, Avalanche, Gnosis Chain, and of course, Ethereum. That means you can swap tokens on cheaper, faster networks without leaving the same interface.

You can access it through the web app at app.1inch.io or through any wallet that supports WalletConnect - like MetaMask, Trust Wallet, or Coinbase Wallet. The interface shows you exactly how your trade is being routed, how much you’ll save, and what the gas cost will be before you confirm.

There’s also the 1inch Wallet, a standalone app launched in late 2022 with over 1.2 million monthly users. It includes a portfolio tracker that pulls in your holdings across 15 blockchains - no more juggling 10 different dashboards.

How does 1inch compare to other DEX aggregators?

As of mid-2023, 1inch handled about 22.7% of the total DEX aggregator market volume, putting it second behind Matcha (28.1%) but ahead of Paraswap (18.9%) and CowSwap (12.4%).

1inch wins on depth - it supports more chains and has more advanced routing logic. Matcha is easier for beginners. CowSwap avoids slippage entirely but only works on Ethereum. 1inch gives you the most control and the most options.

What’s next for 1inch?

The team is moving toward full decentralization. In 2023, they announced a roadmap to transition into a DAO where the 1INCH token holders run the platform - no company, no central team. Governance participation has tripled in a year.

They’re also rolling out Liquidity Protocol V4, which will cut gas costs by another 30-50% by batching multiple trades into one transaction. That’s huge for small traders.

On the compliance side, 1inch works with TRM Labs to screen wallets for sanctions and money laundering risks. They’ve flagged hundreds of high-risk addresses - something most DeFi platforms don’t even try to do. That’s a sign they’re preparing for stricter global regulations.

Who uses 1inch?

Mostly retail traders - 82% of trades come from individual users. But institutional use is growing fast. In Q2 2023, institutions made up 18% of volume, up from just 9% the year before. Hedge funds and crypto funds use it because it’s reliable, secure, and gives them better prices than centralized exchanges.

On Reddit, users praise it for “consistently better rates on large swaps.” On Trustpilot, it has a 4.3/5 rating based on nearly 200 reviews. The main complaints? Occasional failed transactions during network spikes and a UI that feels overwhelming if you’re new to DeFi.

But if you’re doing anything beyond small, simple swaps - and you care about saving money - 1inch is the tool most serious DeFi users turn to.

How to get started with 1inch

It’s easier than it sounds:

1. Get a crypto wallet like MetaMask or Trust Wallet.
2. Deposit some ETH or another supported token.
3. Go to app.1inch.io and connect your wallet.
4. Select the tokens you want to swap.
5. Look at the route breakdown - it shows you exactly which exchanges it’s using.
6. Adjust slippage tolerance (5% is safe for most trades).
7. Click Swap and confirm the transaction.

First-time users usually take 15-20 minutes to complete their first trade. The platform walks you through each step. No need to be a coder.

If you’re holding 1INCH tokens, you’ll see a discount applied automatically when you trade. That’s your reward for being part of the network.

Final thoughts

1inch isn’t flashy. It doesn’t have a celebrity mascot or a viral meme. But it solves a real, expensive problem in DeFi: fragmented liquidity. If you trade crypto regularly, especially in amounts over $1,000, using 1inch can save you hundreds - even thousands - of dollars a year. The 1INCH token isn’t just a coin; it’s your ticket to better prices, lower fees, and a say in how the platform evolves. For anyone serious about decentralized trading, it’s not optional - it’s essential.