Deep Dive
1. Cross-Chain Expansion (Mixed Impact)
Overview: 1inch launched trustless Solana-EVM swaps on August 19, eliminating bridge risks via escrow contracts. This follows June’s Solana wallet integration and could attract $635M Hyperliquid TVL users. However, daily volumes remain at $500M with no immediate spike post-launch (The Block).
What this means: While interoperability strengthens 1inch’s position against Jupiter and Uniswap, success hinges on Solana DeFi activity – currently at 14% of Ethereum’s volume. Short-term price upside may be limited until measurable liquidity inflows occur.
2. DAO Governance Crisis (Bearish/Bullish)
Overview: Delegates claim 1inch Labs controls 95% of $5.3M annual protocol revenue, leaving the DAO treasury depleted by 2027. A August 19 proposal seeks to redirect resolver fees to the DAO, risking a 15-30% drop in resolver participation if implemented (Yahoo Finance).
What this means: Successful revenue capture could extend the DAO’s runway and boost governance token demand, but rushed implementation might degrade swap quality – 1inch’s key competitive edge.
3. Strategic Token Activity (Neutral)
Overview: The team sold 5,000 ETH ($21M) and 6.45M 1INCH ($1.8M) on August 11, realizing $8.36M profits. However, they retain 83.97M 1INCH ($23.7M) and added 11.81M tokens in July (CoinMarketCap).
What this means: While profit-taking creates near-term selling pressure, the team’s retained stake aligns long-term incentives. The 35% 90-day price gain suggests markets are discounting these moves.
Conclusion
1INCH’s price trajectory depends on whether Solana adoption offsets DAO governance risks, with team token strategies acting as a volatility dampener. The token’s 42.04 RSI and -4.19% 24h drop suggest cautious momentum.
Watch: Can DAO voting (concluding September 1) achieve >60% approval without triggering resolver exits?