Home Compound Compound Price Hits $570

Compound Price Hits $570

As Bitcoin and other altcoins reach new highs, investors who are coin-rich but cash-strapped are flocking to decentralized financial money services where they can pool their assets to raise capital for new ventures.

Compound Price Reaches New High of $570 Due to Increase in DeFi Lending iBase Trading.
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As Bitcoin and other altcoins reach new highs, investors who are coin-rich but cash-strapped are flocking to decentralized financial money services where they can pool their assets to raise capital for new ventures.

Compound and its Current Status

The Compound is one of the most popular DeFi lending operating systems. Its TVL, as well as token governance prices, have reached new highs in the last month. The Compound is the third most widely used DeFi lending system in the country. On its own platform, it has $4.55 billion in assets. The value of all of its COMP management tokens also has more than doubled in the last week.

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COMP is currently trading at $566, marking a new all-time high and a 325 percent gain since the start of 2021. The restrictions on stock purchases highlight the need for DeFi. Despite the fact that no major announcements appear to have sparked the current surge in COMP, the company recently integrated with Ledger’s Lend platform, allowing wallet users to use the Compound platform as well as lend stablecoins.

On January 29, Compound co-founder Robert Leshner outlined the stock-buying restrictions imposed by brokerage services like Robinhood on companies like AMC and GameStop.
As per Leshner, due to the framework of the DTCC-Depository Trust & Clearing Corporation, all market is influenced by prolonged trade settlement delays. He also made a proposal that markets should run on blockchains as a long-term solution to the existing challenges.

COMP Proposal and TVL Rally

According to Leshner, an incredibly quick settlement would alleviate the majority of the T+2 settlement’s complexities, expenditure, and capital requirements. Robinhood would be free of debt requirements and the necessity to go after its own consumers.

COMP was selling for $241 during the period. Moreover, it’s probable that perhaps the GameStop incident drew more awareness towards the crypto and DeFi sectors. This will prompt some investors to test Compound as well as other decentralized exchange platforms.

COMP proposal 36 passed the requisite threshold on February 1st. It allows for a three-day community vote phase that ended on February 12th.

A large vote approved the proposal. It aimed to permit the CAP-Community Autonomous Proposal to expand the CF-Collateral Factor of WrappedBTC upon that platform from 60% to 75%. This would go into effect after just a two-day holding time.

Following this revelation, an additional surge of buying swept in. It is pushing the cost of COMP up to 54% from $382 in an early trading hour on Feb. 4 to $555 on Feb. 5.

The present rally in TVL primes to continue rising as token prices and protocol involvement soar to record highs as investment firms. Furthermore, big-name advocates like Elon Musk and Mark Cuban praise the advantages of decentralized finance and the dividend it generates.

“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”

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Peter Gonzalez is an experienced writer focusing on cryptocurrencies and other financial topics with a passion for personal finance. Peter enjoys Sports cars and travelling.