Compound Becomes First DeFi Project With Over $10B TVL

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In Brief
  • Compound is the first DEFi platform to attract over $10 billion in TVL.

  • The impressive milestone is the culmination of months of growth for the top DeFi platform.

  • As the market hyper-focussed on the NFT space, DeFi has been silently gaining traction in the background.

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Compound (COMP) has become the first-ever DeFi platform to cross the $10 billion TVL milestone, following impressive growth since the start of the year.



$10 billion surpassed

Decentralized finance (DeFi) lending platform, Compound Finance, now has over $10 billion in Total Value Locked (TVL), the first DeFi platform to reach that milestone. The figure puts it ahead of DeFi’s second most popular staking destination, Maker (MKR), which boasts a TVL of $8.2 billion, at press time.

The milestone follows months of impressive growth for Compound, which started the year with a TVL of less than $2 billion. This represents a five-fold increase in assets staked in the lending platform in just over three months.



Indeed, COMP’s price performance reflects the increased interest in its lending products, having tripled from $150 at the start of the year, to $449.98, at press time.

As well as ranking first in terms of TVL, COMP boasts a market capitalization of $2.3 billion, putting in 58th place in the overall cryptocurrency market, according to data from CoinGecko.

TVL is a measure of the value of assets committed to DeFi platform’s products. DeFi analysts often use the figure as a proxy to indicate demand for particular DeFi platforms.

DeFi is back

Indeed, Compound’s performance comes amidst a wider surge in interest for DeFi platforms and their products. According to data from DeFi market analyst, DeFi Pulse, aggregate TVL across all DeFi platforms is at a record high of $52.6 billion.

This figure represents a 350% rise in value, since the start of 2021. Lending platforms like Compound dominate the space, with Compound, Maker and Aave (AAVE) alone accounting for 45.8% of this aggregate figure.

Decentralized exchanges (DEXs) come in at second place, with the most popular, Uniswap (UNI), Curve Finance (CRV), and SushiSwap (SUSHI), accounting for another 28.7%.

Accordingly, several major players in the space have taken notice of DeFi’s stellar performance. In January, the world’s largest cryptocurrency-focused investment company, Grayscale Investments, launched an investment trust for AAVE in its first foray into the DeFi space.

The investment company launched investments trusts for COMP, SUSHI and UNI the following month, a clear indication of its clients’ growing interest in the space.

Moreover, billionaire Shark Tank investor and DeFi supporter Mark Cuban revealed his portfolio of cryptocurrency investments included AAVE, sending the DeFi token soaring past $500, at the time.

Will the market continue to grow?

Over the past few months, the crypto market has been hyper-focused on the non-fungible token (NFT) space. Whilst to some extent, this resulted in the DeFi space losing momentum, now that the so-called “NFT-mania” is beginning to subside, DeFi is gaining traction once more.

Indeed, DeFi Pulse not only recorded record high TVL across the board, but also added dozens of new projects to its monitoring list. Thus, not only are DeFi platforms attracting record investment, but new projects are also continuing to build in the space.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Emmanuel entered the cryptocurrency space in 2013 as a cryptocurrency broker. He is a crypto-enthusiast, entrepreneur, and investor, who has built and led several projects and communities in the space. He is CEO and co-founder of Provence Intelligence, a boutique crypto-consultancy firm that aims to bridge the gap between the cryptocurrency and DLT space and the traditional world. Interests include DeFi, non-blockchain DLTs, and the synthetic derivatives space.

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