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Compound’s new token tops the DeFi leaderboard on day one

June 17, 2020

After a single trading day, the COMP token from Compound has developed into the largest DeFi token (decentralized finance) by market capitalization.

COMP outperformed the MakerDAO MKR token by market cap as it recovered over 60% within a few hours. Since then, the token price has dropped about 20% from its local highs of over $ 100. According to the market data aggregator DeFiMarketCap.io, the market capitalization of compound is approx. USD 740 million, 35% higher than that of Maker at USD 547.1 million.

COMP is currently the 20th crypto asset by market cap and pushes the second largest stable coin after USD Coin (USDC) out of the top 20.

COMP protocol and governance

Compound’s new token tops the DeFi leaderboard on day oneCompound’s new token tops the DeFi leaderboard on day one

The compound token started distributing on Monday and started the community government for the protocol.

The connection comprises an algorithmic protocol for the decentralized generation of passive interests in Ethereum (ETH), whereby the project’s ERC-20 token grants the holder voting rights with which they can propose changes to the protocol code.

Control of the COMP protocol

According to DeFiPulse Compound is now DeFi’s second largest managed asset protocol, increasing 48% in one day to $ 176.6 million in blocked funds, or nearly 17% of the total DeFi currently allocated. MakerDAO has blocked funds of $ 488.9 million or 46.6% of all funds invested in DeFi.

The COMP listing increased DeFi’s combined token market cap to more than $ 3.2 billion just a week after the sector’s capitalization exceeded $ 2 billion for the first time. DeFi tokens now account for more than 1% of the entire crypto market for the first time.

Synthetix Founder underestimates COMP

Kain Warick, the founder of Synthetix, a platform that creates synthetic assets for DeFi, and the third protocol on DeFiPulseCompound praised the successful launch of its token and said so He had underestimated the impact of the COMP launch:

“I haven’t seen how to build a strong community without a token to tear it down, but even then something was needed to capture value, governance wasn’t enough,” Warwick tweeted. On twitter.

“I can see that a very strong community around COMP is emerging considering how many people deserve it … The new lenders that will be added over the next few weeks and months will be the ones that will really make a difference. “ he added, predicting that Compound DeFi’s managed assets ranking could soon top.