Compound Token Suffers Heavy Losses But Still Dominates DeFi Rankings – Cointelegraph

Compound Governance Token (COMP), the native token to the popular decentralized finance (DeFi) protocol Compound, has suffered heavy losses after its meteoric first day of trading on Coinbase.

After trading as high as $427 on Coinbase Pro on Tuesday, COMP has fallen back below $250 within 8 hours of the local high. With less than one-quarter of COMP’s entire supply currently circulating, the aggressive price swings were driven by relatively thin volume — posting $24.5 million in trade over the past 24 hours.  

Despite the sharp decline in price, COMP still represents 36.5% of the total DeFi market cap with over $2.3 billion according to DeFiMarketCap

Increasing hype surrounding DeFi ‘yield farming’ has focused attention on COMP. Many yield farmers have sought to earn COMP tokens by lending other crypto assets.

COMP’s big rise and volatility this week

While COMP oscillated between $140 and $180 during its first day of trade on Poloniex during June 18, news of the forthcoming Coinbase Pro listing saw prices more than double in just a few days — with COMP trading for $380 on June 21.

Prices bounced off support at $220 the following day before recovering to test resistance above $350 on Poloniex alongside the Coinbase Pro listing on June 23.

COMP/USDT on Poloniex, 1HR

COMP/USDT on Poloniex, 1HR: TradingView

Compound tops DeFi rankings

Compound comprises