{"id":137485,"date":"2020-06-24T21:35:17","date_gmt":"2020-06-24T20:35:17","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=137485"},"modified":"2020-06-24T21:35:17","modified_gmt":"2020-06-24T20:35:17","slug":"compound-comp-sees-massive-surge-in-on-chain-activity-despite-23-price-slide","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/compound-comp-sees-massive-surge-in-on-chain-activity-despite-23-price-slide\/","title":{"rendered":"Compound (COMP) sees massive surge in on-chain activity despite 23% price slide"},"content":{"rendered":"<p>The recent growth of the DeFi sector has primarily been driven by the recent launch of Compound, which has seen massive inflows of capital and new users due to the bourgeoning \u201cyield farming\u201d trend.<\/p>\n<p>Compound\u2019s launch was highly anticipated and has long been in the works, and it has already been met with significant success \u2013 becoming the most-used DeFi platform in the world in a matter of mere days.<\/p>\n<p>The hype surrounding <a href=\"https:\/\/cryptoslate.com\/coins\/compound\/\">COMP<\/a> may be starting to fade, however, as its token price has plummeted by over 20% today.<\/p>\n<p>This price slide has come despite it seeing a massive uptick in on-chain activity, suggesting that users are still flocking to the platform and engaging in \u201cyield farming\u201d despite Compound's volatility.<\/p>\n<h2><strong>Compound sees notable 20% selloff as hype shows signs of faltering<\/strong><\/h2>\n<p><a href=\"https:\/\/cryptoslate.com\/companies\/compound\/\">Compound<\/a> drew the attention of the crypto sphere due to its successful launch, in which the price of COMP tokens rallied from lows of $65 to highs of $360.<\/p>\n<p>It is important to note that the cryptocurrency\u2019s uptrend was being driven by limited liquidity, and its price has been sliding ever since it was listed on Coinbase this past Monday.<\/p>\n<p>At the time of writing, it is trading down 23 percent at its current price of $213. This marks a notable decline from daily highs of over $270 that were set this morning.<\/p>\n<p>So far, COMP\u2019s utility and price action has largely been driven by the wildly popular \u201cyield farming\u201d DeFi trend, in which users leverage ERC-20 tokens to receive massive returns. In some cases, these returns can stack up to be over 200% annually.<\/p>\n<p>The lure of these returns has led to a total of $560 million to be locked within the protocol, with the total value of funds locked within collateralized DeFi loans across all platforms now sitting at $1.6 billion.<\/p>\n<figure id=\"attachment_137488\" aria-describedby=\"caption-attachment-137488\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-137488\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Screen-Shot-2020-06-24-at-1.00.15-PM-1024x516.png\" alt=\"\" width=\"1024\" height=\"516\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Screen-Shot-2020-06-24-at-1.00.15-PM-1024x516.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Screen-Shot-2020-06-24-at-1.00.15-PM-300x151.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Screen-Shot-2020-06-24-at-1.00.15-PM-768x387.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Screen-Shot-2020-06-24-at-1.00.15-PM.png 1120w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-137488\" class=\"wp-caption-text\">Image Courtesy of DeFi Pulse<\/figcaption><\/figure>\n<h2><strong>COMP's on-chain activity remains high<\/strong><strong>\u00a0<\/strong><\/h2>\n<p>Despite its price sliding from its recent highs, Compound\u2019s on-chain activity still remains incredibly high, signaling that its recent price volatility may simply be the result of trading activity.<\/p>\n<p><a href=\"https:\/\/twitter.com\/glassnode\/status\/1275858350018879492\">Data<\/a> from analytics platform <a href=\"https:\/\/cryptoslate.com\/companies\/glassnode\/\">Glassnode<\/a> elucidates this trend, showing that there are currently 6,000 token holders and more than 3,000 active addresses buying and selling COMP on a daily basis.<\/p>\n<blockquote><p>\u201cSince [Compound] started the distribution of their governance token COMP last week, network activity has quickly risen. There are currently 6,000 token holders, and more than 3,000 active addresses sending and receiving COMP each day.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_137486\" aria-describedby=\"caption-attachment-137486\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-137486\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Glassnode-5-1024x573.jpg\" alt=\"Compound DeFi\" width=\"1024\" height=\"573\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Glassnode-5-1024x573.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Glassnode-5-300x168.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Glassnode-5-768x430.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Glassnode-5-1536x859.jpg 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Glassnode-5-2048x1146.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-137486\" class=\"wp-caption-text\">Image Courtesy of Glassnode<\/figcaption><\/figure>\n<p>These numbers also show that there still remains serious room for growth when it comes to Compound\u2019s userbase. As the \u201cyield farming\u201d trend continues evolving and drawing in more users, it is likely that these numbers will grow.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The recent growth of the DeFi sector has primarily been driven by the recent launch of Compound, which has seen massive inflows of capital and new users due to the bourgeoning \u201cyield farming\u201d trend. Compound\u2019s launch was highly anticipated and has long been in the works, and it has already been met with significant success [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":137491,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940,15323],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Compound (COMP) sees massive surge in on-chain activity despite 23% price slide<\/title>\n<meta name=\"description\" content=\"Compound&#039;s price slide has come despite it seeing a massive uptick in on-chain activity, suggesting that users are still flocking to DeFi\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/compound-comp-sees-massive-surge-in-on-chain-activity-despite-23-price-slide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Compound (COMP) sees massive surge in on-chain activity despite 23% price slide\" \/>\n<meta property=\"og:description\" content=\"Compound&#039;s price slide has come despite it seeing a massive uptick in on-chain activity, suggesting that users are still flocking to DeFi\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/compound-comp-sees-massive-surge-in-on-chain-activity-despite-23-price-slide\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-24T20:35:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/compound-slide.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/compound-comp-sees-massive-surge-in-on-chain-activity-despite-23-price-slide\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/compound-comp-sees-massive-surge-in-on-chain-activity-despite-23-price-slide\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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He owns a non-life-changing sum of Bitcoin and enjoys day trading.","url":"https:\/\/cryptoslate.com\/author\/cole-petersen\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/137485"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=137485"}],"version-history":[{"count":3,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/137485\/revisions"}],"predecessor-version":[{"id":137492,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/137485\/revisions\/137492"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/137491"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=137485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=137485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=137485"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=137485"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=137485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}