In a significant move within the decentralized finance (DeFi) space, the 1inch Investment Fund, the investment arm of the 1inch Network, has acquired 9.652 million 1INCH tokens at an average price of $0.18, totaling approximately $1.757 million USDC. This purchase, executed just hours ago, signals the fund’s continued confidence in the 1inch ecosystem and its native token. Here’s a deep dive into what this transaction means for 1inch and the broader crypto market.
The Purchase: A Strategic Accumulation
According to on-chain data shared by multiple sources, including blockchain analytics platforms, the 1inch Investment Fund made this substantial buy on July 6, 2025, deploying 1.757 million USDC to secure 9.652 million 1INCH tokens. This move is part of a broader accumulation strategy, as the fund has reportedly purchased 19.85 million 1INCH tokens since February 2025, spending over $4 million USDC at an average price of $0.20 per token.
This latest acquisition comes after a period of relative inactivity, with the fund resuming its buying spree following a two-month hiatus. The timing of the purchase, at a price point of $0.18—near recent market lows—suggests a calculated move to capitalize on undervalued tokens, potentially anticipating a market upswing.
Why 1INCH? Understanding the Token and Its Ecosystem
The 1INCH token is the governance and utility token of the 1inch Network, a decentralized exchange (DEX) aggregator that optimizes cryptocurrency trades by sourcing liquidity from multiple DEXs, ensuring users get the best possible rates. Launched in December 2020, 1inch has grown into one of the leading DeFi protocols, offering tools like the 1inch Wallet, Liquidity Protocol, and limit order functionality, all designed to enhance trading efficiency and security.
The 1INCH token serves multiple purposes: Fee Management: On networks like Binance Smart Chain, 1INCH tokens help reduce transaction costs, making trading more cost-effective. Governance: Token holders can stake 1INCH to participate in the 1inch DAO, voting on protocol upgrades, fee structures, and resource allocation. Staking and Rewards: Stakers earn rewards and contribute to the network’s security and liquidity.
With a circulating supply of approximately 1.39 billion 1INCH (93% of its total supply of 1.5 billion), the token’s market cap currently hovers around $277.66 million, with a 24-hour trading volume of $19.98 million as of July 6, 2025
A Pattern of Strategic Moves
This isn’t the first time the 1inch Investment Fund has made headlines for its token purchases. Between July and September 2024, the fund acquired 22.45 million 1INCH tokens at an average price of $0.245, spending $5.5 million USDC. Later, it sold 15.7 million 1INCH tokens at an average price of $0.533, netting a profit of approximately $4.5 million. This track record of buying low and selling high demonstrates the fund’s market acumen and strategic approach to token management.
The recent purchase at $0.18, significantly below last year’s average buy-in price, suggests the fund is doubling down on its belief in 1INCH’s long-term potential. Posts on X indicate that this move has sparked excitement among crypto enthusiasts, with some speculating that it could signal an impending market rally for 1INCH and other altcoins.
Market Context and Implications
The 1INCH token’s price has been volatile, with its all-time high of $9.00 recorded on October 27, 2021, compared to its current price of around $0.20 (up 2.10% in the last 24 hours). Despite a -98% drop from its peak, recent network activity and the fund’s buying spree suggest growing confidence in 1inch’s fundamentals. For instance, a Q2 2024 report highlighted increased transaction volume on Ethereum and Base networks, indicating sustained user engagement despite price struggles.
The broader crypto market has also shown signs of recovery, with Bitcoin recently climbing above $58,500 before settling around $55,700. Altcoins like 1INCH often follow Bitcoin’s momentum, and this purchase could position the 1inch Investment Fund to benefit from a potential market upturn.
What’s Next for 1inch?
The 1inch Investment Fund’s aggressive accumulation of 1INCH tokens may signal upcoming developments within the 1inch ecosystem. Potential catalysts include:
- Protocol Upgrades: The 1inch DAO could propose enhancements to the Liquidity Protocol or introduce new DeFi tools, increasing the token’s utility.
- Market Sentiment: The fund’s high-profile purchases often attract attention, potentially driving retail investor interest and boosting 1INCH’s price.
- Broader DeFi Adoption: As DeFi continues to mature, platforms like 1inch are well-positioned to capture market share, especially with their focus on cost-efficient trading and user security.
However, investors should remain cautious. The fund’s previous sell-off at $0.533 indicates a willingness to capitalize on price spikes, which could lead to short-term volatility. Additionally, the upcoming vesting unlock of $111.5 million worth of 1INCH tokens on December 30, 2025, could introduce selling pressure if not managed carefully
Conclusion
The 1inch Investment Fund’s purchase of 9.652 million 1INCH tokens at $0.18 underscores its confidence in the 1inch Network’s long-term value proposition. By strategically accumulating tokens during market lows, the fund is positioning itself for potential gains while supporting the ecosystem’s growth. For investors, this move could signal an opportunity to revisit 1INCH, especially as the DeFi sector gains traction.
As always, the crypto market is inherently volatile, and investors should conduct thorough research before making decisions. Keep an eye on 1inch’s network activity and broader market trends for clues about the token’s next move. For the latest updates, follow on-chain analytics platforms and check official 1inch Network announcements.
