Will Compound Become a Big Player in Decentralized Finance?
The Compound Protocol (COMP), has managed to surprise many on its first day of trading. While it is only listed on a handful of exchanges currently, including Uniswap, the DeFi token managed to excite traders and drive up demand. On Twitter some have made note of the massive demand for COMP and its marketcap.
Compound & MarketCap
It seems that currently that Compound's marketcap is hypothetically even larger than when Spencernoon commented. With COMP currently trading at $86.95 at the time of writing this and a total liquidity of $1,049,303 its marketcap should be $869 million. This would essentially rank it just beneath Houbi Token as #19 on CoinMarketCap.
Unfortunately for Compound, it is featured as an 'Untracked Listing' on CoinMarketCap at this moment. This is possibly because Compound was just listed earlier today, or possibly due to the limited amount of exchanges listing it currently.
COMP & DeFi
Compound has been in the works since 2018 and has some big-name VC backers. This includes a16z, Bain Capital Ventures & Polychain Capital to name a few.
Compound is both somewhat similar to crypto.com and Celsius in some ways yet different in others. Like Crypto.com and Celsius, they aim on yielding interest on cryptocurrencies. Unlike their competition Compound aim on yielding interest on cryptocurrencies that remain dormant on exchanges and in wallets. To do so there have been several community-built interfaces that integrate with several known crypto wallets including ZenGo & Coinbase wallet.
Should the demand for Compound continue, it will easily be one of the more popular DeFi protocols. The only others that might be above it would be Chainlink & Tether.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado