The Compound has become the first DeFi system to reach the $10 billion TVLTotal Value Locked mark. Thanks to solid development since the beginning of the year.
Compound Finance, a decentralized finance-DeFi lending platform, now has over $10 billion in TVL. It is the only DeFi platform to do so. At the time of writing, it was ahead of Maker-MKR. DeFi’s 2nd most common staking site, with a TVL of $8.2 billion.
The Compound, which began the year with a TVL of lower than $2 billion, has achieved this milestone after months of solid development. In barely over three months, the assets placed in the financing platform have increased fivefold.
COMP’s stock price has tripled since the beginning of the year, reaching $150 to $449.98 at the time of writing, reflecting the growing interest in its lending services.
As per CoinGecko’s information, COMP ranks #1 in regard to Total Value Locked. It also has a market valuation of $2.3 billion. It placed in 58th position in the total cryptocurrency market.
DeFi’s achievements
The worth of assets pledged to the DeFi platform’s services is measured in TVL. The statistic is frequently used by DeFi experts as a gauge for demand for specific DeFi platforms. Furthermore, Compound’s progress coincides with a general uptick in interest in DeFi platforms and services.
As per DeFi Pulse, a DeFi industry analyst, the total value locked throughout all DeFi platforms has reached an all-time record of $52.6 billion.
Since the beginning of 2021, this statistic has increased by 350 percent in value. Lending companies like Compound control the market, with Compound, Maker, and Aave accounting for 45.8% of the total.
One of the most prominent decentralized exchanges is Uniswap or UNI, Curve Finance or CRV, as well as SushiSwap or SUSHI, which account for a further 28.7%.
As a result of DeFi’s outstanding achievement, numerous prominent companies in the space have taken note. Grayscale Investments, the nation’s biggest cryptocurrency-focused investing firm, formed an investment trust for AAVE in January. It marks the firm’s first step into the DeFi industry.
The following month, the investment firm introduced investment trusts for COMP, SUSHI, and UNI, demonstrating its customers’ expanding engagement in the sector.
Furthermore, millionaire Shark Tank investor and DeFi backer Mark Cuban announced that AAVE was part of his cryptocurrency portfolio. It drives the DeFi token over $500 at the period.
The crypto market indeed hyper-focused just on the non-fungible token field for the last several months. While this did cause the DeFi area to lose some traction, that now the so-called NFT-mania is starting to fade, DeFi is regaining momentum.
DeFi Pulse not just set new highs for TVL throughout the board. But it also introduced dozens of different projects to its monitoring roster. As a result, not only are DeFi platforms drawing unprecedented amounts of funding, but new ventures are also sprouting up in the space.
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