CoW Swap market share soars to 26%, challenging 1inch to become the dominant DEX aggregator
Odaily News CoW Swap's market share reached 26% in January 2025, more than doubling from 12% in the same period last year, making it a major competitor in the DEX aggregator market. CoW Swap stands out with its unique "Coincidence of Wants (CoW)" mechanism, which directly matches traders when possible instead of routing through automated market makers, thereby reducing reliance on liquidity pools, reducing slippage and transaction fees, while enhancing protection against front-loaded transactions and other maximum extractable value (MEV) exploits. The platform's monthly trading volume in January was close to $5 billion, which is still considerable, although it is down from the peak of $7.8 billion in December 2024. In terms of institutional activity, World Liberty executed $90 million in stablecoin swaps involving multiple tokens such as ETH, WBTC, LINK, ENA and TRX, and exchanged systematically in blocks of $470,000. CoW Swap activity with Ethereum as the main chain is $3.8 billion, and the monthly trading volume of the Base chain is $1 billion. The platform's main trading assets include USD-pegged stablecoins, wrapped ETH and BTC, showing a focus on major asset pairs. Current data shows that 50% of transactions are executed at prices that exceed expected slippage, while 45% are below expected slippage. Despite the strong performance of CoW Swap, there are other protocols growing in the market, such as Kyber and Bebop, which are also expanding their market share, showing the demand for optimized routing solutions among traders. The DEX aggregator market is becoming more diverse, and the market leader 1inch's share has dropped to 30%, indicating that new protocols are innovating and competing for industry leadership. As institutional traders and whale wallets return, DEX aggregators’ efficiency in processing large trades becomes critical. Managing slippage and providing competitive pricing for large positions will determine which aggregators are able to gain more market share. (The Block)