Compound (COMP) explodes: 200% price increase after Coinbase listing announcement

Despite some very well-known investors such as Coinbase and Polychain Capital, it has long been quiet about Compound and the COMP token. But suddenly the big hype and cryptocurrency broke out yesterday, which even briefly overtook MakerDAO and is currently in 25th place among all cryptocurrencies. One reason for this, in addition to the increasing popularity of DeFi applications, is the news that the COMP token will be tradable on the Coinbase Pro Exchange.

Compound: The coinbase effect strikes again

Suddenly it was all about the Compound (COMP) course. The price rose by more than 24% within 200 hours before some investors took their profits and the price recovered somewhat. While yesterday the price of a COMP token was just over $ 70 USD, the token is currently trading for almost $ 200 USD.

Compound is considered the biggest competitor for makers (MKT), whose market capitalization could be overtaken in the short term by the rapid increase. Maker is currently in 24th place, Compound just behind in 25th place.

One reason for the extreme increase was, as has often been observed with other cryptocurrencies, the upcoming listing on the Bitcoin exchange Coinbase Pro. It shows again that the so-called Coinbase effect again honored his name. Because Maker (MKR) also recorded a high increase as a result of the Coinbase listing.

Another reason for the price explosion is the fact that the COMP token was released to the users of the credit platform on Monday. These serve as so-called "governance tokens", which give the users of the platform the right to have a say in decisions about the management of the protocol. For example, it could be used to vote for the platform by adding a new currency.

Compound (COMP) vs. Maker (MKR)

It remains to be seen whether the compound can prove itself in the long term and whether Maker can overtake it. According to DefiPulse, there are currently over $ 500 million in maker, and almost $ 400 million in compound. With the current hype surrounding the new COMP token, this could change quickly - in both directions. Because some investors are skeptical about the extreme increase and do not see it as a long-term asset.

Source: defipulse.com

However, the fact that decentralized applications are becoming increasingly popular is undisputed. The DeFi platform tokens reached a total value of more than $ 2 billion USD just a few days ago. Especially with the advent of the corona pandemic and declining confidence in financial systems around the world, many investors seem to want to look for alternatives:

The next hype: DeFi tokens reach a market value of $ 2 billion USD

 

Markus from Kryptokumpel.de
Photo credit: pixabay.com | CC0