• 1inch Network [1INCH] announced an update for its RabbitHole on 23 February.
• Market indicators and on-chain metrics were bearish and initiated the price decline.
• However, 1INCH’s popularity is still maintained despite the price decrease.
Overview of 1INCH
1inch Network [1INCH] is a decentralized exchange (DEX) aggregator that provides users with access to the best prices for Ethereum tokens across multiple DEXs. It was the second most traded DeFi project on the Binance Smart Chain (BSC) in the last 24 hours, according to CoinGecko data. Despite this, market indicators and on-chain metrics have been bearish, which has caused a decline in its price.
On 23 February 2021, 1inch Network released an update for its RabbitHole feature that protects Metamask users from front-running directly within their user interface. The new update extends user protection to Uniswap liquidity providers in addition to 1INCH swaps. This update has helped maintain 1INCH’s popularity despite a decrease in its price.
According to CoinMarketCap data, 1INCH’s price decreased by 2% over the last 24 hours and was trading at $0.6175 at press time with a market capitalization of over $489 million. The volume also registered a 40% decline during this period as well as concerns remaining for 1INCH due to CryptoQuant’s data indicating increasing exchange reserves and decreasing active addresses which indicate less network users utilizing it .
Development Activity Decreasing
The development activity of 1INCH has decreased over the past seven days which is not ideal as it indicates less effort being put into improving the network by developers; however, accumulation appears to be increasing as there is a slight increase in total supply held by top addresses . Despite all of this, demand in derivatives markets have increased as DyDx funding rate has gone up slightly .
Despite market indicators showing bearish sentiment and other concerning metrics such as declining active addresses and decreased development activity surrounding it, 1inch Network [1INCH] still remains popular due to its recent update that now covers Uniswap liquidity providers in addition to their own swaps – helping maintain its position among one of the most traded DeFi projects on BSC chain over the past 24 hours according to CoinGecko data .