This calendar week the total value locked in decentralized finance platforms reached a new high at $26.2 billion, and this tape high was achieved fifty-fifty as Bitcoin (BTC) price appeared to be slipping into a downtrend.

This asymmetrical performance from DeFi tokens suggests the sector has staying power and the ecosystem built up around DeFi platforms is probable to take a far-reaching bear upon that may even alter the way traditional finance operates.

Equally DeFi protocols gain traction, decentralized exchange (DEX) aggregators have also emerged among the thriving trading and staking market place. The 1inch protocol sources liquidity from different DEXs and executes the token swaps at the all-time rate in i unmarried transaction. This saves users from having to pay high gas fees on each asset swap that might occur every bit the transaction from, have for example, Bitcoin to Wrapped Bitcoin (WBTC) and so to the desired asset takes place.

Over the past two weeks, 1INCH, the exchange's utility and governance token, has rallied more than 135%, and the electric current trading volume and total value locked (TVL) suggest that there is room for farther price appreciation.

1inch (1INCH) token price at Binance. Source: TradingView

Upon listing, 1INCH price fell from $2.85 on Dec. 25 ,2020 to $0.75 by December. 29, 2020, simply the current features offered by the substitution are clearly underpinning the electric current involvement seen in the token.

By offering an entirely noncustodial service, 1inch is backed by smart contracts that are seamlessly integrated with the most popular DEXs, including Uniswap, Balancer, Kyber Network and more. Currently, 1inch does not charge fees for its service, apart from the gas cost of transactions.

Moreover, transactions on 1inch are upwardly to 40% cheaper due to its Chi GasToken (CHI) by taking advantage of the Ethereum network's "storage refund" on gas costs. Other projects such as Curve have too adopted this ERC-20 token to cover Ethereum transaction fees.

Total value locked ranking. Source: Debank.com

Launched on December. 25, 2020, the 1INCH token behind the 1inch DEX aggregator currently holds the ninth position in total value locked in DeFi. Information technology is worth mentioning that the Mooniswap decentralized exchange also belongs to 1inch.

Mooniswap is 1inch's version of Uniswap, and as an automated market maker (AMM), its smart contracts are responsible for the ERC-twenty tokens-based liquidity pools.

Although currently set to 0%, stakers of 1INCH volition benefit from the eventual spread surplus. Whenever a trade gets executed with prices improve than the initial quote, this generates a potential gain for 1INCH stakers. Other parameters such equally swap fees and a price impact fee might be changed later, simply this depends on the platform's governance voting protocols.

It is worth noting that only half-dozen.v% of the 1INCH tokens have been distributed, while another thirty% volition be allocated over the next four years.

1inch monthly volume. Source: Dune Analytics

Data from Dune Analytics also reaffirms the projects' force in the fast-growing DEX sector. At the moment, 1inch processes $6 billion in monthly volume, and given that one twenty-four hours, token holders may benefit from capturing fees, in that location's lilliputian stopping this rally from standing.

The views and opinions expressed hither are solely those of the autho r and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves gamble. You should deport your own research when making a decision.