Affected by the general decline of the cryptocurrency ecosystem, 1inch suffered a significant blow to its trading volume and revenue in the third quarter, Messari found in a new report.
Launched in May 2019, the 1inch Network is an all-in-one decentralized financial (DeFi) protocol housed in several blockchains namely Ethereum, Arbitrum, Optimism, Polygon, Avalanche, BNB Chain, Gnosis, Fantom, Klaytn, and Aurora. .
In his new report assessing the performance of the DeFi platform in the third quarter, Messari found that total trading volume at 1inch fell by 45.5% between July and September.
In addition, during that period, the total trading volume of the multiple deployments dropped from $49.5 billion to $27 billion. Interestingly, despite the severe decline in overall trading volume, Messari found that the total number of transactions remained stable on a quarterly basis.
In terms of financials, across the ten deployments, 1-inch revenue in the third quarter totaled $1.03 billion. Unfortunately, this represented an 84% drop from the $6.75 billion recorded as revenue by the protocol in the second quarter.
Interestingly, despite the hardships imposed on the overall cryptocurrency market due to the collapse of Terra and Three Arrows Capital, 1inch revenue grew a whopping 92% in the second quarter.
1INCH in Q3
During the bullish correction of the cryptocurrency market in July, while the price of many crypto assets grew steadily within the 31-day period, the price of 1INCH suffered severe volatility, data from CoinMarketCap showed.
However, it managed a sharp rally in the last few days of July before closing the trading month at $0.79.
It continued the upward trend and peaked at $0.88 on August 14. However, with the bulls failing to sustain the price rally, 1INCH spent the rest of the third quarter registering a price decline. On September 30, the price of 1INCH had fallen to a low of $0.58, down 13% from the $0.67 it started Q3.
Before making your next trade
At the time of writing, 1INCH traded hands at $0.5746. The price has risen 1% in the past 24 hours. During the same period, trading volume increased by 43%. After being in decline for most of the year, the asset is currently trading at the December 2020 price level.
On a daily chart, buying pressure rose, albeit slowly. At the time of writing, the Relative Strength Index was in an uptrend at 46.39. It was getting closer to the 50 neutral region at the time of writing. Resting above the neutral line, 1INCH’s Money Flow Index (MFI) was spotted at 51.62.
Note, however, that while buying pressure was mounting, sellers were in control of the 1INCH market at the time of writing. This was confirmed by the position of the Directional Movement Index (DMI). The strength of the sellers (red) at 21.44 rested firmly above the buyers (green) at 18.48.
This post 1INCH: AZ of how the DeFi protocol fared in Q3; stats can be shocking
was published first on https://ambcrypto.com/1inch-a-z-of-how-the-defi-protocol-fared-in-q3-stats-might-be-shocking/