1INCH Drops Amid Launch of Liquidity Protocol Aqua

On FEB 4, 2026, 1INCH fell by 3.86% within 24 hours to trade at $0.1078, marking a 6.47% decline over seven days. While it rose 1.9% over the past month, the token remains 24.44% below its one-year price. This recent downturn coincides with the DeFi ecosystem 1inch unveiling a new shared liquidity protocol named Aqua. Designed to enhance scalability and capital efficiency, Aqua aims to streamline liquidity access for various strategies, reducing the need to allocate or lock funds across multiple pools. This innovation, available to developers through early access, is positioned as a foundational step toward improving transaction efficiency and accessibility for smaller projects.

Developers and DeFi operators are closely monitoring the protocol’s performance and potential adoption rates. Aqua’s launch reflects 1inch’s ongoing strategy to strengthen its infrastructure role within the decentralized finance sector. Notably, the company has previously been integrated by major platforms such as Binance, MetaMask, and Ledger, reinforcing its expanding influence.

Also on the radar is 1inch’s recent rebranding initiative, which includes a new domain and a fresh visual identity. The move, announced in October 2025, is part of a broader effort to enhance user experience and security for institutional participants. Executives have emphasized the firm’s growing role in the DeFi space, with co-founder Sergej Kunz stating in a recent statement that DeFi is on a trajectory toward becoming indistinguishable from traditional finance.

While Aqua and the rebranding efforts highlight 1inch’s innovation agenda, the price decline suggests investor sentiment has not yet fully aligned with these developments. Analysts project that further updates and increased adoption of Aqua may stabilize or reverse the downward trend, but market reactions will depend on broader DeFi dynamics and user engagement.

Historically, 1INCH has seen sharp price movements. In October 2025, the token surged over 100% in a short period, reaching an all-time high of $8.65. The surge followed a period of relatively low volatility and came amid growing interest in DEX aggregators. Earlier in 2021, the project launched with a high-profile airdrop that distributed 6 million 1INCH tokens to Uniswap users, alongside $9 million in incentives for the community.

Despite these past successes, the recent decline underscores the volatile nature of the DeFi token market. While Aqua’s launch is a significant step forward, it remains to be seen whether it will be sufficient to attract renewed investor interest and drive upward momentum in the near term.