Compound has made history as the first DeFi platform to record more than $10 billion in TVL. The figures come after the DeFi platform recorded gradual growth over several months.
Compound (COMP) has made history after becoming the first DeFi platform to record a Total Value Locked (TVL) of over $10 billion. TVL is used to measure the value of assets associated with offered products on the DeFi platform.
A high TVL means that the demand for Compound is on the rise. This is an impressive milestone for the firm, given that they have recorded steady growths since January 2021. With this figure, Compound will become the most popular DeFi protocol. At the beginning of the year, Compound had a TVL of below $2 billion.
Compound’s TVL growth represents a five-fold increase in the total assets staked on the platform in less than four months. Compound’s price has also been gradually growing. The price shot from $150 in January to $449 in April 2021. The market capitalization for Compound also sits at $2.29 billion as of April 2021.
The growing popularity of DeFi
The popularity of DeFi platforms and products has dramatically risen in recent months, and Compound’s current performance is evidence of this. Data from DeFi Pulse shows that the TVL across all DeFi protocols stands at over $52 billion. The aggregate TVL has risen by more than 350% since January this year.
Prominent lending DeFi platforms such as Compound, Maker, and AAVE account for almost half of the aggregate TVL.
Decentralized exchanges (DEXs) rank in second place, with protocols such as Uniswap, Curve Finance, and SUSHI account for more than 28%. To tap into this arena’s growth, major investment companies are also shifting their operations into the DeFi Space.
Grayscale, a global crypto-asset platform, started an investment trust for AAVE assets in its primary way of investing in the DeFi platform. After AAVE, Grayscale also adopted other DeFi investment trusts such as SUSHI, Uniswap, and COMP.
The growth of DeFi is expected to continue into the future, seeing that the crypto market has been performing exceedingly well. Even though most crypto investors focused on Non-Fungible Tokens (NFT), the demand for DeFi has started to rise again steadily.
The statistics posted by DeFi Pulse also show that new De-Fi projects are joining the market. This makes DeFi an excellent destination for investors who want to achieve record investments in the future.