The DeFi space has been the talk of the crypto town. The release of the COMP token has certainly spurred things up for the DeFi space as a total of 2 billion USD is currently locked in it.
DeFi Hits ATH After Locking $2 Billion
Decentralization is one of the significant properties that every cryptocurrency must entail. However, several assets part of the crypto-verse now is either fully or partially centralized. Part of the crypto industry, Decentralized Finance [DeFi] came to the rescue of those who considered decentralization was a compulsion. The DeFi space has paved the way for several applications.
More recently, a prominent lending platform, Compound Finance took the entire crypto space by storm after releasing a governance token. The COMP token was released on 16 June 2020 and ever since, the price of the token, as well as the value locked in the DeFi space, has been on an uphill journey. Earlier today, the total value locked in DeFi in terms of USD also hit an all-time high of $2 billion.
Out of the whopping 2 billion USD locked in DeFi, Compound accounted for 655.1 million USD while Maker, the former face of DeFi, locked 594.6 million USD, at the time of writing.
For several years, Maker had been dominating the DeFi space while Compound always stood a step below the former. However, the roles were reversed after the release of the COMP token. During press time, Compound had a 32.73 percent dominance over the DeFi space. As per a recent report published by dapp.com, the Compound network had experienced a 3.5 times increase in user amount. The volume of the network reportedly surged by more than 24 times post distribution of COMP token.
Was the COMP Token A Mere Fad?
After its release, the COMP token garnered immense traction due to its price movement. The token witnessed massive price gains just a few days after its release and even soared up to a high of $372.72. However, the token has been witnessing significant dips over the past few weeks.
The COMP token had witnessed a massive 31.5 percent drop over the past 14 days. At the time of writing, the token was trading at $192.01 with a 2.7 percent drop in its price over the last 24-hours.
Despite, its dominance in the DeFi space, the price of the COMP token seems to be plummeting. This has further left people speculating that the DeFi bubble is on its way to explode.