Compound Token Lights The Weekend With Over 70% Gains, Why?

The Compound project launched its COMP token just a week ago. Since then, the token has rallied by more than 200%. Nearly half of this came during the weekend. The token COMP rallied by over 70% during the weekend. Because of this, the token has found a place in the top 20 ranked coins.

After launching at a [rice of $90, the token is now exchanging for $275 at the time of writing this. over the weekend, it set its ATH price at $340. Around this price, the asset also set a market cap of $1B.

Following its explosion, it has now set itself as the biggest decentralized finance token by market cap. This has seen it surpass the more prominent Ethereum and Maker.

Compound token has however begun the new week at a slower pace. At the time of writing this, the token has retraced losing around 20%.

Despite this drawback, there is an indication that we have not seen the last of this token, this starting with growth in Compound token adoption.

Coinbase To Offer Major Boost To Compound

For starters, Coinbase has announced that it will be listing the coin.

This was announced late last week, possibly triggering the ‘Coinbase effect’. Investors FOMO around a coin if it is to list in a major exchange and this explained the price action over the weekend.

Furthermore, DeFi is only getting started. Despite hitting major milestones in recent days such as reaching over $1B, analysts agree that this is just getting started. Over the next couple of years, this will grow exponentially over the coming years.

Compound will have a stake at this, and a place in the top tokens that lead the market. For now, investors are keen to see where the retracement will take prices before there is any attempt to break its ATH.

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Author: Christine Ann

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