Compound (COMP) Surges Above 65% in the Past Week PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Compound (COMP) Surges Above 65% in the Past Week

Time Stamp: July 5, 2021 11:30 AM
Compound (COMP) Surges Above 65% in the Past Week PlatoBlockchain Data Intelligence. Vertical Search. Ai.
  • Compound (COMP) has surged over 65% in the last week.
  • In comparison, DeFi has only risen by about 9%.
  • Also, Compound Labs launched Compound Treasury aimed at non-crypto businesses.

DeFi protocol Compound (COMP) has surged over 65% in the last week. Based on CoinGecko data, COMP is currently up 73% and trading at $433.21.

In addition, COMP has a 24 hour trading volume of $416,966,950 and $2,358,055,856 market cap. At the same time, the DeFi market is up only 9% over the same period. In addition, the DeFi market cap is $72,822,322,548 with a total value locked (TVL) of $94,812,201,647.

Notably, decentralized finance (DeFi) refers to financial providers that have no central intermediaries and are built on top of blockchains. In turn, Compound is a DeFi platform that supports crypto liquidity pools. The pools allow crypto holders to earn interest on their crypto holdings instead of just holding them in stasis.

To clarify, crypto holders can deposit their coins into liquidity pools where other users can borrow the funds. Of note, the borrowers pay an algorithmically set interest rate based on demand. As such, lending on the platform enables users to earn compound interest over time.

In fact, the DeFi protocol has helped users earn over $12 billion in interest since its 2017 launch. At present Compound supports 14 liquidity pools for cryptos like ETH, Uniswap, and DAI.

Also, Compound Labs, the power behind Compound, launched Compound Treasury a week ago. Compound Treasury is a tool that allows non-crypto native businesses access to Compound pools.

The new feature works with Fireblocks and Circle to build product and fund flows that support Neobanks, Fintech startups, and high US$ liquidity holders. Also, Compound Treasury aims to help onboard the next billion DeFi users by making DeFi more accessible and less volatile. To this end, Compound Treasury utilizes a safe and secure stablecoin backed by the US dollar.

Finally, as of a week ago the DeFi market had plunged over 40%. DeFi has been under fire with a rising number of scams and rug pulls recently. For instance, DeFi protocol WhaleFarm tanked by 99% after its founders pulled the rug. The project was only a month old but had accumulated over $2.3 million in assets. 

Source: https://coinquora.com/compound-comp-surges-above-65-in-the-past-week/

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