From June 17th to June 30th this year, Compound, as the leader of DeFi 1.0, rose from 27 USDT to a peak of 59.5 USDT. Especially from June 25th to June 30th, the maximum increase was about 100%. As shown in the following figure:

Compound is an algorithm-based mortgage lending protocol that provides users with current floating interest rate deposits and lending services. It is a leading project in DeFi 1.0 and a cornerstone of DeFi LEGO that is highly sought after by capital. Although Compound's fundamentals are good, it is still worth exploring why it doubled in a week during a period of unclear market direction. We found the following four reasons:

1. On June 17, Compound officially published an article titled "The Compound Protocol Belongs to the Community" on Medium, stating that Compound has launched an on-chain system that freely distributes COMP tokens to protocol users, achieving community governance. This empowerment of the community greatly promotes Compound users' support for the community, which is also reflected in the secondary market price.

2. According to Lookonchain's Twitter, on June 26, a user with the address 0x0D5 deposited 3 million US dollars into Binance and withdrew 2.26 million COMP tokens within two hours, suspected to be an institutional entry. As observed by Twitter user Yu Jin, on June 29, the same user with the address 0x0D5 withdrew a total of 170,000 COMP tokens from Binance. Based on the observations of these two on-chain analysis bloggers, it also implies, to some extent, that institutions are entering the market.

3. On June 29th, Compound founder and CEO Robert Leshner announced the establishment of a new company called Superstate, which aims at the current hot field RWA. They are committed to purchasing short-term US Treasury bonds and putting them on the chain, making a secondary record on the blockchain, and directly trading and circulating the ownership shares of the fund on the chain. At the same time, Compound announced the appointment of a new CEO, Jayson Hobby, who has worked at well-known companies such as Coinbase and Uber. In many other projects, the appointment of a new CEO may be seen as a negative factor for entrepreneurship. However, due to the possibility of linkage between the former founder's new entrepreneurial project and Compound's business, coupled with the impressive resume of the newly appointed CEO, it may all become a driving force for growth.

4. The first three points are the reasons why Compound may rise recently, but the influence of the cryptocurrency market environment should not be ignored. The recent rebound of mainstream coins such as BTC and ETH is conducive to the rise of high-quality blue-chip projects, which also needs to be considered.

However, Odaily would like to remind that Compound and other leading projects in the sub-sector have recently seen significant increases. Users should be cautious about chasing high prices and do their own research (DYOR).