1inch Debuts on Solana, Handling Five Times the Transactions of Ethereum with Comparable Volume

1inch has introduced its support for Solana, allowing users to perform on-chain swaps via the 1inch decentralized application (dApp) and access six APIs available through the 1inch Developer Portal.

This integration, revealed at TOKEN2049 Dubai, signifies the initial significant deployment of 1inch’s Fusion protocol on the Solana network, laying the foundation for cross-chain swaps not only with Solana but also with over ten other blockchains already in service.

The integration comes at a time when Solana is showing superior performance compared to other blockchain platforms regarding essential metrics.

Data analysis indicates that Solana achieved a trading volume of $395 billion on decentralized exchanges in the last three months, outstripping Ethereum’s $364 billion. Additionally, Solana handled 4.8 billion transactions, whereas Ethereum saw only 1 billion, culminating in 224 million active addresses compared to Ethereum’s 78 million.

The extension of 1inch taps into Solana’s quick block times, enhancing its Fusion protocol, which features intent-based trading. This allows users to set their trading parameters, while market makers or “resolvers” vie to execute trades using a Dutch auction format.

In this approach, exchange rates begin high and gradually reduce until a resolver finalizes the trade, reducing slippage and enhancing liquidity aggregation. 1inch claims its open-source smart contract code on Solana promotes greater transparency compared to other projects on the network.

The capability of cross-chain swaps between Solana and other supported networks is expected to launch in the upcoming months, viewed by 1inch as a move towards diminishing the separateness of individual blockchains and establishing a cohesive multichain DeFi ecosystem.

According to 1inch, there are now over 1 million tokens issued on the Solana platform, benefiting from MEV-protected swaps, aggregation from all liquidity sources, and some of the most thoroughly audited smart contracts within the ecosystem.

1inch’s move to incorporate Solana follows a series of achievements for the platform, which has established itself as one of the foremost multichain decentralized exchange aggregators, facilitating trades across more than 300 liquidity sources across 15 layer-1 and layer-2 networks.

The platform is also contending with rivals like CoW Swap, which captured 26% of aggregator market share as of January, compared to 1inch’s 30%, indicating a growing competition within the aggregator market.

This integration broadens 1inch’s offerings, which also include a self-custodial wallet, a crypto debit card providing up to 2% cashback, and a hardware wallet expected to be released later this year.

The expectation is that as Solana’s DeFi landscape evolves and 1inch’s multichain initiatives advance, this move will enhance 1inch’s position in a market where efficiency, security, and strong liquidity are crucial for user adoption.

1inch co-founder Sergej Kunz highlighted the wider vision behind the initiative, noting that the goal of unifying diverse blockchains has been fundamental to the creation of 1inch.

He stated that while other entities may offer fragmented solutions, 1inch aims to provide optimized, secure, and high-volume products that enhance the accessibility and efficiency of DeFi.