Compound TVL fell to a new low in the last week of May due to negative crypto market sentiment for decentralized applications (dApps).
On January 1, 2022, Compound TVL was approximately $8.9 billion, decreasing to around $3.9 billion by May 26.
As an algorithmic, autonomous interest rate protocol, Compound was built for developers to unlock a universe of open financial applications. Housed in the Ethereum blockchain, Compound allows users to borrow and lend crypto while contributing to decision-making by being holders of its native asset, COMP.
Its TVL fell due to an overall bearish market on all smart contracts-backed chains. While COMP has dropped by more than 50% in TVL, Ethereum TVL also dipped by 53% from $146.7 billion on the first day of the year to $68.5 billion on May 26.
After losing around $4.9 billion in TVL, Compound has become the eighth dApp in terms of most value locked.
COMP price reaction
COMP opened on January 1, with a trading price of $200.28, reaching a yearly high of $242.94, and was exchanging hands for $60.65 as of press time.
Overall, this equates to a 69% decrease in the price of COMP throughout 2022.
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