Ex-Bloomberg journalist Camilla Russonoted on Jun. 19 that the value of tokens locked in DeFi applications has skyrocketed 40% in the past week alone. There is now $1.4 billion worth of digital assets locked in such applications.
Simultaneously, DeFi-centric tokens went parabolic, with one analyst sharing the chart below showing the performance of assets like Aave’s LEND, Kyber Network’s KNC, and others compared to BTC.
But driving this growth wasn’t DeFi’s poster child, MakerDAO, it was Compound.
The king of decentralized finance has been unseated
Driving DeFi’s growth this week was Compound, a decentralized money-market protocol that allows users to borrow and lend their assets.
The protocol didn’t change. What did change, though, was the public introduction of COMP — Compound’s governance token.
Prior to this past week, it was only held by investors and owners in the company that runs the DeFi protocol. But Compound this week made the token public, allowing users of the protocol to earn the altcoin.
And despite it being days from public launch, the Ethereum-based COMP has seen parabolic growth.
According to data fromCoinMarketCap, the market capitalization of COMP recently eclipsed that of MakerDAO’s MKR token — long deemed the “king” of DeFi.