Spike in DeFi lending pushes Compound (COMP) price to a new high at $570

Overall worth secured Compound. Source: Defi Llama.
Substance, which ranks 3rd among DeFi loaning protocols, has $4.55 billion worth of assets locked on the platform and its COMP governance token has actually doubled in value over the past week. Currently COMP trades for $566, a new all-time high and 325% increase because the start of 2021.
Stock purchasing constraints highlight the requirement for DeFi.
While there are no significant statements that seem to have actually catalyzed the current rally from COMP, the project did just recently integrate with Ledgers Lend platform which permits wallet users to communicate with the Compound platform and lend out their stablecoins.
On Jan. 29 Compound co-founder Robert Leshner went over the stock buying constraints brokerage firms like Robinhood put on stocks like AMC and GameStop.
According to Leshner, all markets are impacted by long trade settlement times due to the structure of Depository Trust & Clearing Corporation (DTCC), and he recommended that “markets work on blockchains” as “the long-lasting response” to the issues currently faced.
Lesner mentioned:.
” Instant settlement would eliminate many of the capital, cost, and intricacy requirements which pester T +2 settlement. Robinhood would not have credit responsibilities, or the requirement to turn versus their own customers.”.
AT the time COMP was trading for $241 and its possible that the extra attention the GameStop mess gave the crypto and DeFi sector may have encouraged some investors to give Compound and other decentralized exchange platforms a try.

COMP/USDT 4-hour chart. Source: TradingView.
COMPENSATION breakout follows crucial governance vote.
On Feb. 1 COMP proposal 36 reached the needed threshold required to allow a three-day community voting period, which ended up on Feb 12.
The proposition, which sought to permit the “Community Autonomous Proposal (CAP) to increase the Collateral Factor (CF) of WrappedBTC from 60% to 75%” on the platform,” passed by a broad margin and will be implemented after a two-day waiting period.
Another wave of purchasing followed this statement, moving the price of COMP 54% greater from $382 in the early trading hours on Feb. 4 to $555 on Feb. 5.
As attention from institutional investors grows and prominent influencers like Elon Musk and Mark Cuban tout the benefits of decentralized finance and the yield it uses, the current uptrend in TVL is poised to move greater as token values and procedure engagement surge to brand-new highs.
Title: Spike in DeFi financing presses Compound (COMP) price to a new high at $570.
Sourced From: cointelegraph.com/news/spike-in-defi-lending-pushes-compound-comp-price-to-a-new-high-at-570.
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As Bitcoin and various altcoins surge towards brand-new all-time highs, traders who are coin rich however money poor are increasingly gathering to decentralized finance financing platforms where they can collatoralize their holdings to raise funds for new investments..
Compound is among the leading DeFi lending platforms and over the past month its TVL and governance token rate has actually rallied to brand-new highs.