According to the popular DeFi-projects aggregator, Defipulse.com, there is a transition in the DeFi market, and a new leader has emerged in the decentralized finance sector.
Compound project, which offers cryptocurrency lending services, took the first place among DeFi startups in terms of the total value locked. The previous leader, MakerDAO blockchain platform, went down to the second place after Compound outperformed it.
At the press time, over $ 600 million were reserved for Compound project and $ 453 million for MakerDAO one.
Note, that the changes occurred a few days after the start of the distribution of Compound (COMP) tokens among users.
Also, the achievement came on the heel of a listing announcement from Coinbase.
Tokens under the COMP ticker are already trading on the decentralized Uniswap crypto exchange.
Coinbase major announcement for Compound cryptocurrency thus led to spike in the price of COMP token . The value of the cryptocurrency surged by over 183% in just 7 days.
Today, June 22, Coinbase Pro opens deposits in preparation for trading of COMP token. Trade will start tomorrow subject to the formation of sufficient liquidity.
Coinbase is among Compound investors. Previously, Brian Armstrong’s company integrated its digital wallet with popular cryptocurrency lending protocols.
The COMP token is an ERC-20 format token that is used to manage the Compound decentralized protocol. Holders of the Compound cryptocurrency are being given some privileges. For example, they can vote for changes to the protocol.
Holders of COMP tokens and their delegates can discuss, propose, and vote for various changes to the protocol.
Compound originally placed 4,229,949 COMP tokens on a specially created account that the company calls Reservoir. For each Ethereum block generated in Compound network, 0.5 COMP is transferred from the Reservoir account to the protocol – approximately 2,880 tokens per day.
These tokens are distributed between Compound markets (ETH, USDC, DAI, and so on) in proportion to the interest that has been accrued on them. Within each market, 50% of COMP tokens are received by lenders, and 50% by borrowers.
Compound project introduced its token first in February 2020. The announcement was part of a plan to put the control of the project’s protocol to the crypto community. During the initial distribution period, COMP tokens were distributed between the company’s employees and its investors.
Interest in COMP tokens has enabled Compound to surpass MakerDAO’s market capitalization metrics.
According to CoinGecko analytical service data, the market cap of COMP at press time is $ 746 713 110. The minimum and maximum rates of the cryptocurrency for 7 days were $ 67.31 and $ 336.22, respectively.
Recently, the representatives of the crypto industry have been paying much attention to the decentralized finance market. For example, Bitcoin pioneer Erik Voorhees talked about what he preferred to DeFi cryptocurrencies.
In parallel, startups in this area continue to attract large investments, and popular companies seek to bring their developments to the decentralized finance market.