The government logo Compound (COMP), which comes from the popular decentralized financial protocol (DeFi) of the same name, has suffered heavy losses after its meteoric first day of trading at Coinbase.
After trading up to $ 427 on Coinbase Pro on Tuesday, COMP dropped below $ 250 within 8 hours of the local high. With less than a quarter of the total COMP offering currently in circulation, aggressive price changes were due to a relatively low volume. Registration of $ 24.5 million in stores in the past 24 hours.
Despite the sharp drop in prices, COMP still accounts for 36.5% of DeFi’s total market cap at over $ 2.3 trillion, according to DeFiMarketCap.
This increases the excitement around DeFi’s “performance farming”, with COMP being the center of attention. Many yield farmers have tried to earn COMP tokens by borrowing other crypto assets.
The great growth and volatility of COMP this week
While COMP was trading between $ 140 and $ 180 on the first day of trading on Poloniex on June 18, news that it should be listed on Coinbase Pro caused prices to more than double within a few days. with COMP trading around $ 380 on June 21st.
Prices rebounded the next day from the $ 220 support before recovering to test resistance above $ 350 in the Poloniex along with the listing on Coinbase Pro on June 23.
COMP / USDT pair on Poloniex, 1 hour range: TradingView
The connection leads the DeFi ranking
The connection includes a decentralized loan log. It pays its native ERC-20 to both borrowers and lenders.
If COMP claims that future interest will be paid through the protocol, Due to token demand, Compound has become the top rated DeFi Managed Asset Project (AUM).
According to DeFiPulse Compound currently has blocked funds of $ 592 million, representing more than 38% of the total AFi in the DeFi sector. At the time of this writing, more than 20% of the market cap of the major USD stablecoins (USDC) is protected in the compound protocol.
At this point, approximately 26,650 COMP tokens were distributed out of the 4.23 million tokens assigned to users. User intervention accounts for 42% of the total token supply. 2,880 tokens are issued daily, with 0.5 COMP being distributed for each mined block of Ethereum (ETH).
22.25% of COMP’s offer was allocated to the founders and project team subject to a four-year license, and 24% was allocated to Compound Labs shareholders, including Andressen Horrowitz and Coinbase Ventures.