Just after one day of trading, the Compound’s COMP token has emerged among as the largest DeFI [Decentralized Finance] token by total market cap.
COMP easily bypassed MakerDAO’s MKR token by market cap as it rallied by over 60% within just a couple of hours. The token’s price has since pulled back around to above 20% from its launching highs over $100 USD. Compound’s market capitalisation of nearly around $740 Mln is presently 35% above than Maker’s $547.1 Mln, consistent with market data aggregator DeFiMarketCap.io.
At the reporting time, COMP is presently the 20th-ranked crypto token overall by market cap, premiering as the 2nd-largest stablecoin by capitalization USD Coin [USDC].
COMP Decentralized Passive Protocol
Compound’s token began open for trading for the users on Monday, launching community governance for the protocol.
The basic protocols of Compound promises decentralized passive interest generation based on Ethereum [ETH], with the project’s ERC-20 token affording voting rights to holders and permitting them to propose alterations to the protocol’s code.
In line with DeFiPulse, Compound is presently the 2nd-largest DeFi protocol by assets under management, growing by 48% in just a day to $176.6 Mln in locked funds – or nearly 17% of the entire funds presently allocated to DeFi. MakerDAO has $488.9 Mln in locked funds, or 46.6% of all funds invested into DeFi.
COMP’s listing has pushed the combined market cap of DeFi tokens to over $3.2 Bln only one week after the sector’s capitalization exceeding to $2 Bln for the very primary time. DeFi tokens now represent above 1% of the entire cryptocurrency asset market capitalisation for the very primary time.
COMP – Underestimated By The Community
Kain Warick, the founder of Synthetix, a platform that makes synthetic assets for DeFi as well as the 3rd-ranked protocol on DeFiPulse, offered praise to Compound regarding the successful launch of their token – proclaiming that he had underestimated the impact COMP’s launch would have. Adding further he said:
“I didn’t see how you’ll build a robust community without a token to bootstrap it, but even then some quite value capture was needed, governance wasn’t just enough.”
“I can see a really strong community emerging around COMP now given the wide selection of individuals earning it, it’s the new lenders flowing in over subsequent weeks and months which will really make a difference,” he added, predicting that Compound may soon top DeFi’s ranking by assets under management.