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On June 19, COMP was traded online for the first time, and its price skyrocketed from 0.08 ETH to 0.41 ETH on Uniswap. As of 12:00 on June 21, the price of COMP has soared to 1.24 ETH.
Summary
Summary
Topic: DeFi is hot again, can Compound secure the top spot? On June 16, Compound, a decentralized finance (DeFi) lending platform, officially began distributing its governance token COMP to users. As more and more investors obtain COMP through borrowing on the platform, the token price and the amount of borrowing on the platform skyrocket at the same time. The total market value of COMP is about 3 billion US dollars, making it the DeFi token with the highest market value. In addition, the total value of the locked tokens on the Compound platform soared to 500 million US dollars. 400%.
Quotes: The market fluctuates downward. The total market value of digital tokens this week was US$268.89 billion, a decrease of US$6.84 billion or about 2.5% compared to last week; the average daily turnover rate was 24.9%, a decrease of 3.6% from last week. The current price of BTC is 9288.1 US dollars, with a weekly decline of 2%, and the average daily trading volume is 20.3 billion US dollars. The current price of ETH is 227.14 US dollars, a weekly decline of 4.4%, and the average daily trading volume is 7.8 billion US dollars. This week, the BTC balance on the exchange was 2.296 million, a decrease of 129,595 from last week. The balance of ETH on the exchange was 13.783 million, a decrease of 52,081 from last week. Among the BICS secondary industries, the proportion of the data & storage industry has increased significantly.
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Risk warning: regulatory policy risk, market trend risk
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1. DeFi is popular again, can Compound hold the top spot?
Since June, the number of applications and pledged tokens in the DeFi field has ushered in explosive growth. The development of the DeFi ecosystem has injected fresh blood and energy into lending platforms. Among them, Compound’s platform token COMP performed particularly well.
1.1 COMP platform token COMP
Compound is a mortgage lending platform running on Ethereum, and it is also one of the mainstream lending platforms in the DeFi lending market. When an investor needs to use an encrypted asset, he does not need to spend 100% of the cost to hold it, but only needs to bear a certain amount of interest to obtain the right to use it within a specified period of time.
On the Compound platform, users can mortgage one token to lend another token, such as mortgage ETH to lend USDC. The Compound platform currently supports six tokens: ETH, DAI, USDC, BAT, REP, and ZRX.
In February of this year, in order to realize the complete decentralization of the Compound protocol governance process, the Compound development team decided to issue the governance token COMP to create a community organized by token holders. Community members can make changes to the protocol through proposals and votes, replacing The current centralized governance method led by the development team.
1) 2,396,By the beginning of March, Compound deployed the governance token COMP to Ethereum, with a total of 10 million pieces, of which:
2) 226,307 COMP have been allocated to shareholders of Compound Labs;
3) 372,037 COMP have been allocated to the founders and team of Compound Labs, and it will take 4 years to fully unlock;
4) 5,004,707 COMP distributed to future team members;
949 COMP will be reserved for protocol users;
On June 16, Compound officially began to distribute its governance token COMP to users. According to Compound's "borrowing is mining" rule, the official will provide about 2880 COMP to protocol users every day.
In lending transactions on the Compound platform, 50% of the COMP will be allocated to the lender, and 50% of the COMP will be allocated to the borrower. Users can obtain the corresponding proportion of COMP according to the proportion of their assets in the market.
The mainstream encrypted asset exchange Coinbase announced that it will list COMP token on June 22, and will open COMP trading on June 24.
1.2 Compound grabs the top spot
As more and more investors obtain COMP through borrowing on Compound, the price of COMP tokens and the amount of borrowing on the Compound platform skyrocket at the same time.
On June 19, COMP was traded online for the first time, and its price skyrocketed from 0.08ETH to 0.41ETH on Uniswap. As of 12:00 on June 21, the price of COMP has soared to 1.24ETH.
Currently, COMP has a total market capitalization of approximately $3 billion, making it the DeFi token with the highest market capitalization. In addition, the addition of COMP also made the total market value of DeFi tokens exceed $6 billion, which just reached $2 billion on June 9. The total market value of DeFi tokens has increased by more than $4 billion in 10 days.
In addition, less than a week after COMP began to be distributed, the total value of tokens locked on the Compound platform has soared to 500 million U.S. dollars. In nearly half a month, the total value of locked positions has soared by more than 400%.
1.3 Can the top spot of Compound be secured?
Due to the skyrocketing price, COMP has become the focus of the crypto market, especially DeFi investors. The 24-hour trading volume of COMP exceeded US$1.1 million on the first day of listing, bringing some vitality to the recent weak market. But behind the skyrocketing price of COMP, there are hidden dangers that cannot be ignored.
First of all, investors scrambling to obtain COMP through lending behavior deviates from the original concept of DeFi. The price of COMP soared in a short period of time, causing a large number of outsiders and wool parties to join the DeFi field. The original purpose of COMP issuance was to realize the complete decentralization of the Compound protocol governance process and strengthen community management. However, the main motivation for users to participate in Compound’s lending is to obtain additional COMP tokens, which has deviated from the original concept of DeFi and is not sustainable. pattern of development.
Finally, DeFi smart contracts are hacked from time to time, and their security has been questioned. In April of this year, Uniswap and Lendf.me were attacked one after another, putting the issue of DeFi security in front of market investors. At present, the development time of DeFi is relatively short, and it has not yet experienced a long-term security attack and defense test. This time, a large number of investors and funds poured into Compound, which may attract hackers to attack Compound.
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2. Market: The token market fluctuates and goes down
2.1 The overall market: the market fluctuates and goes down
This week, the ChaiNext Digital Asset 100 Index closed at 833.45 points, down 2.2%. The ChaiNext Digital Asset 100X Index closed at 2127.31 points, down 3.2%.
The total market value of digital tokens this week was US$268.89 billion, a decrease of US$6.84 billion or about 2.5% compared to last week.
The average daily turnover of the digital token market was US$68.1 billion, a decrease of 14.8% from last week, and the average daily turnover rate was 24.9%, a decrease of 3.6% from last week.
This week, the BTC balance on the exchange was 2.296 million, a decrease of 129,595 from last week. The balance of ETH on the exchange was 13.783 million, a decrease of 52,081 from last week.
The market value of USDT is 9.13 billion US dollars, and the premium rate of USDT relative to the US dollar has decreased.
2.2 Core token: ETH turnover has shrunk by nearly half
The current price of BTC is 9288.1 US dollars, with a weekly decline of 2% and a monthly decline of 2.5%. The average daily turnover is 20.3 billion US dollars, and the average daily turnover rate is 11.7%.
The current price of ETH is 227.14 US dollars, with a weekly decrease of 4.4% and a monthly increase of 8.1%. The average daily turnover is 7.8 billion US dollars, and the average daily turnover rate is 30%.
This week, the volatility of mainstream digital tokens has dropped slightly, and the price fluctuations have become flatter than last week. The monthly volatility of BTC decreased by 1.6% from last week; the monthly volatility of ETH decreased by 0.6% from last week.
2.3 BICS industry: the proportion of data & storage industry has increased significantly
Among the top five BICS (Blockchain Industry Classification Standard, Blockchain Industry Classification Standard) secondary industries, the proportion of the data & storage industry has increased significantly; the proportion of the market value of the media content industry has decreased significantly.
The secondary industries of BICS that saw a significant increase in the number of tokens this week were non-bank finance and communication services, while media content, data & storage saw a significant decline.
2.4 Market view: BTC's upward support is weak and the support below it is gradually being eroded
The market is volatile, and we still need to pay attention to controlling positions. BTC has been halved, and the recent volatile market has provided investors with a more suitable price. It is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
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3. Output and popularity: The difficulty of BTC has been greatly increased
This week, according to Google Trends, the search popularity of the term Bitcoin is 11, and the search popularity of Ethereum is 12.
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4. Industry News: Blockchain is in the ascendant
4.1 Bakkt June BTC futures due delivery quantity hit a record high
On June 20th, Arcane Research data showed that Bakkt’s June BTC futures expired last week, causing the exchange’s dollar capital inflows to hit a record high. BTC contracts for delivery on Bakkt increased from 117 in April 2020 to 221 in June 2020. However, it’s worth noting that despite nearly 293 BTC contracts for delivery in March, the number of BTC deliveries in U.S. dollar terms in June exceeded the levels seen in all months of 2020, including March.
4.2 Ebang International will be officially listed at 21:30 on June 26
Ebang International will be officially listed at 21:30 on June 26, and the new registration will end on June 25. It is reported that Ebang International will hold a cloud bell ringing ceremony at Hangzhou Qiantang River Intercontinental Hotel at 9:30 p.m. Beijing time on June 26. According to previous reports, the prospectus of Yibang International on June 17 shows that the company plans to issue 19.3 million shares at a price of US$4.50 to US$6.50, and plans to raise US$106 million (the highest fundraising is US$125 million). The stock code is "EBON ".
Note:
Note:
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
