Compound begins first day of trading as the most valuable token in DeFi
Today Compound announced users would begin receiving COMP tokens, marking the beginning of its life as a token protocol. Shortly after the Compound protocol began distributing comp tokens, a COMP-ETH pair began trading on Uniswap, a decentralized exchange protocol. According to DeFi Market Cap, COMP currently trades at $85.99 valuing Compound at over $850 million on its total supply of 10 million COMP. The implied valuation makes Compound the most valuable token in DeFi, valued at more than 58% greater than MakerDao. The Uniswap COMP-ETH pair has facilitated about $670,000 in trading volume so far and currently has just over $2 million in liquidity, the 4th deepest liquidity pool on UniswapV2.
Why it matters:
- Compound introduced its governance token in February and recently outlined its plan for distributing COMP tokens in May. The distribution will be DeFi’s best case study of “progressive decentralization” to date.
- Compound is one of DeFi’s most successful projects to date. It locks the 3rd most value in DeFi and has originated more than $375 million in loans since launch.
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