Compound (COMP) Token Continues Outperforming The Market After a 300% Rally

June 22, 2020 2:15 PM UTC

DeFi platforms and products offering decentralized finance are rapidly growing as a new type of crypto asset. DeFi is an open-source protocol developed on top of blockchain technology, it allows users to control their assets without employing the services of traditional financial sectors.

On June 15, Compound finally issued COMP tokens for trading. The digital currency experienced a massive surge getting to the top of the crypto list within days, currently ranked 24th by market capitalization.

Compound includes an algorithmic protocol for self-governing interest generation on the Ethereum network. COMP is an ERC-20 token that empowers investors to vote or to propose a variation to the system code.

Coinbase Pro Lists COMP Almost Instantly

This is perhaps the fastest listing on Coinbase ever. The token started trading on Uniswap but was announced on Coinbase only hours later.

In the past, Coinbase announcements always sparked price rallies of crypto assets, and Compound aims to exhibit the same behavior.

Vitalik Buterin, CEO of Ethereum, tweeted, “Decentralized finance should not be about optimizing yield.”

Eric Conner, another Ethereum developer, said, “Yield farming will allow open source projects with a working, in-demand product to monetize via token incentives” and called it an “important funding experiment.” 

It seems that people do not agree on whether DeFi should focus on optimizing yield or not. According to DeFiMarketCap, DeFi tokens had recently crossed the $2 billion thresholds, and the recent launching of Comp token had propelled the total market cap of DeFi tokens over $3 billion.

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