The crypto market is trying to catch the marathon move exhibited by one recently launched token named Compound (COMP). COMP is a DeFi (Decentralized Finance) token with a total supply of 10 million tokens. However, only about 2.5 million tokens are currently in circulation, placing its market cap at around $900 million.
On Thursday, Coinbase announced that it would be listing COMP and avail it for trading on its platform, and that had the effect of creating a rush that doubled COMP’s price within 24 hours. Coinbase was an investor in Compound, and therefore its move to list the token so early could be expected. COMP trading on Coinbase starts next week.
Besides Coinbase, another exchange named FTX has expressed willingness to list COMP soon. CoinFlip is also considering listing COMP as one of the dollar-backed stablecoins to help meeting the increasing demand for COMP. CoinFlip operates a network of Bitcoin ATMs within the US.
COMP Is Commanding Attention
The sudden outburst of Compound has fueled a heated conversation about the apparent future of DeFi and thereby driving a speculative sentiment that has cemented the crypto’s standing as a credible investment with a bright future. At the moment, Compound trades at $349, posting a cool 60% rise in the day.
The rise of COMP has attracted the attention of various popular entities in the industry, including Delphi Digital and Mythos Capital. According to Delphi Digital, DeFi will continue to gain traction. That means that tokens like COMP will continue to gain both in price and popularity. Ryan Sean Adams, the founder of Mythos Capital, is appalled by how much energy the DeFi industry seems to have. He posted a tweet to that effect.
COMP Vs MAKER
COMP isn’t the first DeFi-focused token to hit the market. MAKER (MKR) has been in the market for a while and has made huge strides to post impressive prices. However, with the current spike in the new Compound, MKR’s stance as the leading DEFI platform has been usurped as COMP now has the most value staked in DeFi.