Compound (COMP) has become the first DeFi platform to cross the $ 10 billion TVL milestone, following impressive growth since the beginning of the year.
Passed the $ 10 Billion Milestone
Decentralized finance lending (DeFi) platform Compound Finance now has more than $ 10 billion in total locked value (TVL), the first DeFi platform to reach that milestone.
The figure places it ahead of the second destination of staking DeFi’s most popular, Maker (MKR), which boasts a TVL of $ 8.2 billion, at press time.
The milestone follows months of impressive growth for Compound, which began the year with a TVL of less than $ 2 billion. This represents a five-fold increase in assets staked on the loan platform in just over three months.
In fact, COMP’s price behavior reflects increased interest in its credit products, having tripled from $ 150 at the beginning of the year to $ 449.98, at press time.
In addition to ranking first in terms of TVL, COMP has a market capitalization of $ 2.3 billion, ranking 58th in the overall cryptocurrency market, according to data from CoinGecko.
The TVL is a measure of the value of the assets committed to the products of the DeFi platform. DeFi analysts often use the figure as a proxy to indicate demand for particular DeFi platforms.
DeFi is back
In fact, Compound’s performance comes amid a broader rise in interest in DeFi platforms and their products. According to data from DeFi market analyst DeFi Pulse, ehe TVL aggregated across all DeFi platforms is at a record $ 52.6 billion.
This figure represents a 350% increase in value, since the start of 2021. Lending platforms like Compound dominate the space, with Compound, Maker and Aave (AAVE) alone representing 45.8% of this aggregate figure.
The exchanges decentralized (DEX) rank second, and the most popular, Uniswap (UNI), Curve Finance (CRV) and SushiSwap (SUSHI), account for another 28.7%.
Consequently, several major players in the space have taken notice of DeFi’s stellar performance. In January, the world’s largest cryptocurrency-focused investment firm, Grayscale Investments, launched an Investment Trust for AAVE in its first foray into the DeFi space.
The investment company launched Investment Trusts for COMP, SUSHI and UNI the following month, a clear indication of your customers’ growing interest in the space.
Additionally, billionaire Shark Tank investor and DeFi supporter Mark Cuban revealed that his cryptocurrency investment portfolio included AAVE, which sent the DeFi token over $ 500, at the time.
Will the market continue to grow?
In recent months, the cryptocurrency market has become too focused on the non-fungible token (NFT) space. While to some extent this caused the DeFi space to lose momentum, now that the so-called “hype NFT ”is starting to decline, DeFi is gaining ground once again.
In fact, DeFi Pulse not only posted a record TVL across the board, it also added dozens of new projects to its watch list. Therefore, Not only are DeFi platforms attracting record investment, but new projects continue to be built in the space.
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