State of 1inch Q2 2025

Key Insights

• Average daily swaps hit 407,249, up 203.8% QoQ after Binance Alpha airdrops pushed BNB Chain volume 781.3% higher, accounting for 79.1% of Aggregation Protocol traffic.
• Solana support and 1inch wallet integrations exposed over a million SPL tokens to MEV-protected routing, extending 1inch’s reach beyond EVM chains.
• Unichain integration brings “double” MEV defense via 1inch resolvers plus Unichain’s TEE block-building.
• The new Pathfinder improves swaps by up to 6.5% by optimizing paths, consolidating swap steps, and maximizing concentrated liquidity to enable quicker and more capital-efficient swaps.
• Fusion+ median daily volume rose to $1.06 million (+3.8% QoQ) while active wallets rose to 187 (+4.8%), hinting at sticky demand for gasless cross-chain swaps.

Primer

The 1inch Network (1INCH) is a decentralized finance (DeFi) DEX aggregator and intent-order protocol operating on Ethereum, Solana, Arbitrum, Avalanche, Base, BNB Chain, Gnosis, Sonic, Optimism, Polygon, zkSync Era, Linea, and Unichain. Launched in 2019, the 1inch Aggregation Protocol (AP) allows users to route trades across various markets and realize the best available rate compared to any individual decentralized exchange (DEX). In late 2020, the 1inch Liquidity Protocol introduced a native automated market maker (AMM) to the network, which enables users to provide liquidity and earn liquidity mining rewards.

The network’s second product, the 1inch Limit Order Protocol (LOP), was introduced in June 2021 to support conditional limit and stop-loss orders with no fees. In late December 2022, intent-based swaps were enabled by Fusion mode, where approved registered addresses called Resolvers compete via a Dutch auction mechanism to fulfill orders with a specified price and time range, and do not need native tokens for network gas fees. In November 2024, 1inch fully released Fusion+, the latest evolution of 1inch Fusion, to enable cross-chain atomic swaps.

All protocols are governed by the 1inch DAO using the network’s native 1INCH token.

Note: This report includes data from Ethereum, Solana, Arbitrum, Avalanche, Base, BNB Chain, Gnosis, Sonic, Optimism, Polygon, zkSync Era, Linea, Fantom, and Unichain. Data from Klaytn and Aurora are currently not included.

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Key Metrics

Protocol Analysis

Aggregation Protocol

Of 1inch’s protocols, the Aggregation Protocol is responsible for most volume routed through 1inch. Daily average volume on the Aggregation Protocol jumped 172.8% QoQ to $848.2 million. The surge was almost entirely a BNB Chain story: BNB’s routed volume ballooned from $21.0 million to $610.8 million per day, up 2,796.2% QoQ, and accounted for 72.8% of total flow, up from 6.9% in Q1. The rapid increase in volume on BNB is attributed to airdrop campaigns such as Binance Alpha, a program that rewards BNB wallet usage with airdrops. Since May, 8 airdrops took place, with an average value of $1,076 per user based on initial closing prices. The surge in activity on BNB led to an announcement from Binance declaring that wash traders will not be eligible to receive the airdrops.

Ethereum slid to an 18.2% share while Base shrank to 2.4%. Ethereum was the second largest chain by volume in Q2 (18.2%), followed by Arbitrum, whose market share declined from 11.4% to 4.8% QoQ. However, its daily average volume increased 13.9% to $40.7 million. Combined, these three chains accounted for 95% of the volume on the Aggregation Protocol, up from 79.4% in Q1.

In Q2, Uniswap V3 maintained the top slot on 1inch. It captured 35.7% of the routed volume; however, the daily average volume decreased 70.5% QoQ from $85.7 million to $25.3 million. Both Uniswap versions grew in market share, with V3 and V4 up 249.5% and 842.7%, respectively. Uniswap V4 experienced the highest volume growth, with its average daily volume up 237.8% from $2.7 million. PancakeSwap rode the BNB surge to second place at $22.1 million per day and lost the least market share (-18.9% QoQ). Other DEXs averaged $18.7 million, down 73.0% QoQ. Execution flow is consolidating, with Uniswap (V3 and V4), PancakeSwap, and Fluid now accounting for 73.8% of all volume.

Daily average transactions on the Aggregation Protocol jumped 203.8% QoQ to 511k. BNB did most of the heavy lifting, with its throughput exploding 781.3% to 407.2 k swaps daily, overthrowing Ethereum and making up 79% of transactions in Q2. Transactions on Base decreased 29.9% to 40.5k, while Ethereum clocked 26.3k transactions, up 13.5% QoQ.

Daily average active addresses on the Aggregation Protocol rose 15.2% QoQ from 67,838 to 78,135. BNB led with 44,238 wallets per day (+72% QoQ), capturing 56% of total users. Addresses on Ethereum decreased 5.6% QoQ to 12,597 daily active addresses. Base’s user base also reduced to 10,743 (-33.9%). Optimism saw the second-highest user growth, rising 19.7% QoQ from 1,409 to 1,686 daily active addresses.

Limit Order Protocol

Daily average volume on the Limit Order Protocol decreased 39.5% QoQ from $112.4 million to $68.01 million. The Ethereum deployment maintained its dominant share (87.1%), despite daily average volumes falling 41.9% QoQ from $101.6 million to $59.0 million. All other deployments experienced a decrease in trading volume. Base saw the most significant decline (-50.4%), with daily average volume dropping from $3.5 million to $1.7 million. Similarly, Arbitrum and BNB Chain each saw volume declines of roughly 44.4% and 39.6% QoQ, respectively. Avalanche recorded the smallest decline among major chains, with daily volume down 26.5% QoQ to $683,023. The Limit Order Protocol’s highest-volume day in Q2 was approximately $230 million on May 30, lower than previous quarters, indicating traders favored immediate execution via the Aggregation Protocol rather than placing limit orders.

Daily average orders on the Limit Order Protocol decreased 7.8% QoQ from 8,400 to 7,744. Ethereum daily average orders rose 12.6% QoQ from 3,500 to 3,900, increasing its share of total orders to 50.5%. Linea saw the most growth in Q2, increasing daily average orders from 58 to 72, a 23.1% increase QoQ.

In contrast, the other deployments saw fewer orders. Polygon experienced the most significant percentage decrease (-31.3%), with daily average orders down from 1,039 to 713. BNB Chain and Arbitrum dropped by 18.9% and 11.6%, averaging 693 and 680 daily orders, respectively. Ethereum’s increase amid declines elsewhere suggests user activity on Limit Orders is concentrating back to Ethereum despite overall order activity trending downward.

Daily average active addresses on the Limit Order Protocol decreased 30% QoQ from 3,385 to 2,369. Base had the most significant percentage decline (-56.0%), with daily active addresses falling from 962 to 423. Ethereum also decreased in usage, with daily average active addresses down 19.6% QoQ from 923 to 742. Polygon decreased 29.4% to 294, Arbitrum declined 18.2% to 340, and BNB Chain fell 14.5% to 346. Only Linea saw growth, with daily active addresses up 26.9% to 47 daily average active addresses.

Fusion Mode

Resolvers are approved registered addresses that compete via a Dutch auction mechanism to fulfill 1inch Fusion and Fusion+ orders. Rizzolver extended its lead among resolvers in Q2, increasing its share of Fusion volume from 31% to 38.6% as its average quarterly volume rose 25.9% to $1.17 billion. Flowmatic retained the second spot with a 13.8% share despite a 21% drop in volume. 1inch Labs ranked third, accounting for 15.3% of volume after a 35% decline. While its relative share declined, 1inch Labs remained one of the protocol’s top 3 execution venues, fulfilling $420 million in volume. The T’s share fell from 13% to 6%, while Arctic Bastion grew modestly to 8%. “Others”, a long tail of smaller or eight emerging resolvers, collectively increased their share by 175% to 17.5%, suggesting growing competition in the resolver set. Altogether, the top three resolvers handled 68% of Fusion volume, down slightly from 72% last quarter.

Daily average orders in Fusion mode decreased 21.3% QoQ from 4,497 to 3,540. Base daily orders fell 16.5% from 1,318 to 1,100, while Ethereum declined 18.1% from 1,231 to 1,008. Arbitrum and BNB Chain also contracted, down 17.2% and 18.8%, respectively. Polygon saw the steepest drawdown among chains, with daily average orders down 39.0% from 621 to 379. The only chain that grew in Q2 was Linea, where average daily orders increased 32.5% from 50 to 66 orders. Ethereum and Base together accounted for 59.6% of all Fusion mode orders in Q2, up slightly from 56.3% last quarter.

Fusion mode daily average active addresses decreased 36.4% QoQ from 2,476 to 1,576 in Q2. Activity declined across nearly all major chains. Base saw the sharpest contraction, falling 63.4% from 796 to 291. Ethereum remained the top chain by user count, but daily active addresses declined 22.2% from 677 to 527. Arbitrum dropped 21.4% to 261, while Polygon fell 36.9% to 173. BNB Chain had the lowest decrease across deployments, dropping 15.9% to 166 average daily active addresses. Once again, the only growth came from Linea, which rose 40.8% QoQ to 43.0 average daily active addresses. Ethereum and Base remained the most significant sources of Fusion activity, accounting for 51.9% of active addresses in Q2.

Fusion+ Mode

Fusion+ is 1inch’s intent-based protocol for cross-chain swaps. Users sign offchain orders that resolvers compete to fill via Dutch auctions, with execution coordinated through Hashed Timelock Contracts (HTLCs). This structure removes the need for users to pay gas, protects against MEV, and allows for partial fills across chains. Resolver participation, auction logic, and trade parameters are governed by the 1inch DAO, making Fusion+ a modular framework for secure, gasless, and efficient cross-chain execution.

Fusion+ median daily volume increased 3.8% QoQ from $1.02 million to $1.06 million in Q2. Median daily active addresses rose 4.8%, from 178.5 to 187.0. Growth moderated sharply after an explosive Q1, when median daily volume surged 319% and active addresses climbed 449% QoQ. The deceleration in Q2 suggests Fusion+ has exited its initial launch phase and is beginning to see a more predictable baseline.

Market Analysis

Market Cap and Staking

Staking 1INCH gives Unicorn Power (UP), which can be used to vote in governance and delegate to resolvers. Staking and delegating to resolvers create an important value accrual pathway for the token: resolvers give 1INCH rewards to attract delegates so the resolvers can compete in completing Fusion transactions.

Treasury

The 1inch DAO continues to be mindful of spending while allocating growth opportunities for all 1inch users and participants. In Q2, the DAO approved three payments totaling $1,306,026:

• [1IP-76] Recognized Delegates Program Renewal (Apr 27, 2025) – Sets aside 250,000 USDC for a 12-month extension of the delegate incentive program, keeping experienced voters active in governance.
• [1IP-79] Trading Terminal, Limit Orders, and Solana Integration for the Alternative Modular Interface of 1inch (May 30, 2025) – Approves 288,000 USDC to add a pro-style trading terminal, enhance limit-order features, and integrate Solana support into the modular interface
• [1IP-80] Frontend Exploit User Reimbursement (Jun 24, 2025) – Authorizes a one-time transfer of 768,026 USDC to the 1inch Foundation to reimburse users affected by the October 2024 supply-chain exploit.

At the end of Q2, the treasury was valued at $12.9 million, up 0.9% QoQ from $12.8 million.

Market Share

1inch has historically been the top DEX aggregator by volume within the EVM ecosystem, and its lead widened in Q2. 1inch averaged $28.6b in routed volume, up 134.7% QoQ, lifting its share of aggregator volume on EVM chains from 32.5% to 59.1%. CoWSwap averaged $6.9b after a 17.6% decline, reducing its share to 14.3%. Kyber and Odos each averaged about $3.2b, slipping to 6.6% each as volumes fell 24.2% and 30.2%, respectively. Paraswap averaged $3.1b (-19.1% QoQ) for a 6.3% share, while ZeroEx settled at $2.5b (-11.9%) and a 5.1% share. UniswapX and OpenOcean remained smaller at $0.6b and $0.4b, together holding about 2.0% of volume.

The five largest platforms captured roughly 94.0% of routed volume, up from 89.0% in Q1, indicating that volume concentrates around the major aggregators rather than dispersing across smaller competitors.

Similarly to volume, 1inch has historically been the top aggregator by users within the EVM ecosystem, though its share narrowed in Q2. 1inch averaged 973.9k monthly users, down 10.9% QoQ, and its user share slipped from 42.5% to 40.1%.

ZeroEx posted the fastest growth, rising 21.8% QoQ to a monthly average of 713.8k users and lifting its share from 22.8% to 29.4%. Kyber averaged 269.9k users, a 5.1% decrease that kept its share at 11.1% in Q2. OpenOcean recorded 168.0k users, down 26.4% QoQ, bringing its share to 6.9%. Odos followed closely with 165.0k monthly average users, a 19.4% decline QoQ, and a 6.8% share.

Paraswap experienced the steepest contraction, dropping 31.9% QoQ to 75.6k users and a 3.1% share. CoWSwap was the only smaller aggregator to add users, up 10.1% QoQ to 36.2k users and a 1.5% share. UniswapX averaged 24.0k users, a 30.1% decline, leaving it with 1.0% of the user base.

Together, the three largest platforms, 1inch, ZeroEx, and Kyber, accounted for 80.7% of aggregator users in Q2, up from 76.3% in Q1.

Qualitative Analysis

Integrations, Partnerships, Upgrades, & More

The 1inch protocol has made significant strides in expanding its ecosystem and enhancing its utility through a series of strategic integrations, partnerships, and upgrades:

• Solana Chain Integration (Apr. 29) – 1inch deployed its Swap & Fusion protocols on Solana, immediately exposing more than 1 M SPL tokens to MEV‑protected routing in the dApp and laying the groundwork for upcoming cross‑chain Solana↔EVM swaps.
• Pathfinder Upgrade (Jun. 10) – A rebuilt Pathfinder routing engine went live, consolidating routes and merging intermediate hops to deliver up to 6.5% better-quoted rates across trades while reducing gas consumption.
• Network Deprecations (Jun. 11) – Support for Fantom, Kaia, and Aurora was sunset due to low volumes versus maintenance cost. Limit Orders on these chains were withdrawn from the UI, although onchain orders remain callable.
• Sonic Integration (Jun. 19) – High‑throughput Sonic went live across the dApp, Wallet, and API suite, enabling near‑instant swaps, zero‑bridge cross‑chain transfer, and portfolio tracking, all safeguarded by default MEV protection.
• $500k Bug‑Bounty Launch (Jun. 3) – 1inch introduced a five‑track, half‑million‑dollar bounty program to crowd‑source vulnerability discovery across smart‑contracts, backend, and mobile surfaces, further professionalizing its security posture.
• Unite DeFi Hackathon Partnership (Jun. 3) – In collaboration with ETHGlobal, 1inch announced “Unite DeFi,” a global hackathon offering up to $525k in prizes to spur cross‑chain tooling and integrations built on 1inch APIs.
• Unichain Integration (Jun. 25) – Optimistic L2 Unichain was added across the dApp, Wallet, and Developer Portal. Intent‑based swaps now enjoy “double” MEV defense (1inch resolvers + Unichain TEE block‑building).
• Solana Wallet Support (Jun. 30) – The final leg of the Solana expansion: users can now swap, send, receive, and track SPL assets natively inside 1inch Wallet, with Ledger support, address‑book templates, and WalletConnect connectivity out of the box.

Closing Summary

In Q2, 1inch showcased its scalability and robust infrastructure by absorbing a sharp surge in Aggregation Protocol demand, driving daily average volume up 172.8% QoQ to $848.2 million.

The team continued building for long-term growth with strategic deployments to high-throughput ecosystems like Solana, Unichain, and Sonic, alongside the rollout of a new Pathfinder, an upgraded routing engine. These moves strengthen 1inch’s position in the cross-chain liquidity race and improve execution quality. Meanwhile, the cross-chain Fusion+ protocol showed modest but stable growth, with median daily volume and active addresses up 3.8% and 4.8%, respectively, indicating sustained demand for MEV-protected cross-chain swaps.

This quarter highlighted the network's capacity to handle high transaction volumes while it continued to execute a strategic roadmap focused on infrastructure enhancement and multichain growth.