Uniswap and Compound Rallied to New Highs As DeFi Sphere Heat Up

January 31, 2021 2:53 PM UTC

The entire decentralized finance (DeFi) ecosystem has been accelerating rapidly in the past 30 days. Based on DeFi Pulse data, since the start of 2021, DeFi total value locked has climbed up from $16.43 billion to a new high of $27.67 billion.

According to data from Messari, DeFi and decentralized exchanges are the only two sectors that are performing well in terms of their recent market cap increase. Over the last week, both surge 17.6% and 23.2%, respectively.

The meteoric growth of the DeFi sector started in mid-2020. At the time, users have invested billions of dollars in order to enjoy the benefit from reward incentives and yield farming. Currently, the total market cap of DeFi tokens has surpassed $45 billion, as a whole, according to CoinGecko.

Major DeFi Tokens Smash to New Spikes 

As the entire DeFi sector is fabricating trending growth, Uniswap and Compound both surged exponentially to hit new all-time highs on January 30. According to data from CoinMarketCap, the price of UNI jumped to a high of $20.39, and COMP rallied to $339. 

Market analysis shows that the COMP price rally comes after the launch of the comp vote interface upgrade and a new governance module that empowers users to receive gas fees discount by simply voting instead of on-chain transactions.

Uniswap’s recent milestone follows the launch of the grants program that aims to expand the exchange’s ecosystem. The rising transaction volume, TVL (Total Value Lock), and user interest in the upcoming v3 upgrade are mainly pushing UNI’s bull rallies. Over the past week, UNI’s price has jumped by more than 160% in total, fueling its market cap above $4 billion.

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