UNI and COMP Hit ATHs as DeFi Nears $30 Billion TVL

Share Article
In Brief
  • UNI and COMP hit all time highs as DeFi's total locked value continues to climb.

  • UNI and COMP are the native cryptocurrencies of the Uniswap and Compound platforms.

  • Uniswap is a decentralized exchange and Compound facilitates decentralized lending.

  • promo

    Want to learn how to trade? Get a beginners guide from _BeInCrypto Academy_ now!

The Trust Project is an international consortium of news organizations building standards of transparency.

The momentum behind decentralized finance (DeFi) continues, as two of the most popular DeFi currencies surge to their all time highest prices.



UNI and COMP, the native cryptocurrencies of Uniswap and Compound, have hit highs of $20.29 and $337 respectively according to CoinGecko. This comes as total value locked (TVL) in DeFi is also at its all time high of $27.38 billion. With the current debacle surrounding the Gamestop stock and possible manipulation from centralized firms, more and more market players will flock to decentralized financial platforms if they can offer the same services and capabilities as their centralized counterparts.

The Defi Explosion

Compound is the third most popular decentralized lending platform. Uniswap is the largest decentralized exchange by far. Both have billions of dollars locked into their platforms and users from all around the world. Built on the Ethereum smart contract platform, both Uniswap and Compound have solidified themselves as leading defi applications. Their growth is almost exponential.



Both tokens are platform governance tokens. These give owners the ability to proportionally control the governance of the platform based on their stake in the network. Uniswap airdropped its token to all users who used the platform before a specified date. The 1000 UNI airdrop that each user received to their Ether wallet is now worth close to $20,000 if they did not sell it. It was completely free and automatically received just for platform usage.

Offering Superior Value

There are many factors that draw users to DeFi applications. One of the most important is the increased value passed along to the user instead becoming profit for a third party. With UNI, users receive a portion of the transaction fees. They can also earn UNI by providing liquidity to the platform as a market maker. Compound gives users the ability to borrow or lend money in a peer-to-peer fashion. This lets each user act as their own personal pseudo-bank, giving out loans to qualified borrowers on interest.

Previously, only the elite and ultra wealthy utilized these financial instruments. With the creation of decentralized finance, regular people can profit from these services and the end users benefit. Although these tokens are at all time highs, if the platforms continue to grow then the token prices should follow.

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.
Share Article

Related topics

Harrison is an analyst, reporter, and lead specialist at BeInCrypto based out of Tel Aviv, Israel. Harrison has been involved in the cryptocurrency space since late 2016 and is passionate about decentralized ledger technology and its potential.

Follow Author

Trade with the Best Crypto Signals - guaranteed profits with over 70% accuracy

Join now

Want to learn how to trade? Get a beginners guide from BeInCrypto Academy!

Learn now

Bybit Bonus Bash. $1,000 Bonus to be Won!

Join now