Blockchain and cryptocurrency investment firm Pantera Capital says it’s backing the decentralized exchange aggregator 1inch.
In a statement, Pantera says the highly fragmented state of the decentralized finance space is a challenge for traders. The firm believes its investment in 1inch will improve the emerging ecosystem.
“…with hundreds of DEXes and AMMs in the market, liquidity has fragmented across the digital asset ecosystem. For traders, this means that selecting the right DEX or AMM could have considerable impact on the prices of the selected token pair. On top of that, each DEX or AMM only covers a specific set of crypto pairs, and individual DEXes tend not to be interoperable with each other. Ultimately, traders are left craving a better solution.”
Per Pantera, 1inch solves this problem by giving traders access to liquidity from various decentralized exchanges and liquidity protocols. Traders enjoy deep liquidity levels as well as the best prices.
The decentralized exchange aggregator came into being last year in May and is currently the third-largest decentralized platform by volume, according to crypto data aggregator CoinGecko. The founders are Sergej Kunz and Anton Bukov.
At time of writing, 1inch ranks third with 13.9% of the market share by volume compared to 14.3% for second-placed Curve Finance and 39.6% for first-placed Uniswap.
Since the company’s formation, the cumulative trading volume on 1inch is over $7 billion. The trading volume recorded on 1inch over the last 24 hours is nearly $177 million.
Pantera Capital reveals that 1inch plans to cement its market position by growing its product suite. Products in the pipeline include yield farming, lending and automated market maker protocols. Pantera adds that a native token (1INCH) is awaiting release.
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