Compound has surprisingly surpassed MakerDAO as the largest Decentralized Finance (DeFi) platform in the market. The most surprising thing is that in just a week, it moved from the third position in the DeFi market and reached the top surpassing MakerDAO, which seemed to be the undisputable leader in the space.
Compound Surpasses MakerDAO
Nobody was expecting such a thing to happen. Indeed everyone was bullish about MakerDAO as the dominant protocol in the DeFi space. This has however changed in the last hours, when the Lending DeFi solution known as Compound surpassed MakerDAO in terms of USD value locked on their platforms.
As you can see in the image above, DeFi Pulse reported that Compound registered a growth of 18.5% in just 24 hours while Maker has fallen by 2.63%. Meanwhile, Aave has also been growing and increased the USD value locked on its platform by 7.30%
This is a surprising movement experienced by Compound, which just a week ago was in the third position below Maker and Synthetix with $102 million in value locked. That represents a 427% increase in just a few days, which shows the increasing number of users that are interested in using these DeFi solutions.
Indeed, the COMP token, related to the Compound platform, has surged and reached the top 20 market surpassing Maker (25), IOTA (24), Dash (23), Ethereum Classic (22), NEO (21) and the stablecoin USD Coin (USDC) (20). Now, the virtual currency has a market capitalization of $730.82 million and it has a price per coin of $285. In the last 24 hours, this virtual currency grew by 35%.
It is worth taking into account that now users receive COMP as a reward. This means that you will not only have a yield to lend a crypto asset but you will also get some COMP as a reward for the effort you are doing on this network. As the price of the COMP virtual currency grew, borrowers were also attracted considering that they were able to get higher returns with it.
Nonetheless, things could end as soon as capital stops flowing into the platform. The yields users get could soon fall and the interest for this platform disappear. It is always important to make an in-depth analysis about what’s going on with a skyrocketing asset before placing your funds into this platform.