Price movements and tremendous performance have made Compound Coin (COMP), an ERC-20 token, one of the most talked-about cryptocurrencies in 2020. COMP coin holders and delegates can discuss changes to the Compound protocol, propose various suggestions, and vote on decisions to be made.
Additionally, the direct delivery of COMP coin to users is facilitating the growth of an expanding ecosystem.
COMP coin is an ERC-20 token that strengthens community governance of the Compound protocol. Each day, approximately 2,880 COMP are distributed to the protocol’s users. This distribution is proportional to the demand for borrowing in each market.
On the other hand, 50% of the distribution in each market is earned by suppliers and 50% by borrowers. The mentioned allocations are shown in the “Market Distribution” table on Compound’s website.
Moreover, the Compound protocol allows users to earn interest, borrow, or lend without any intermediary. COMP coin, a prominent example of decentralized finance (DeFi), aims to solve the traditional banking system’s interest conundrums. The absence of a third party in interest earning specifically serves this purpose.
Furthermore, through Compound, both borrowers and lenders can meet on a peer-to-peer platform and complete their transactions directly with smart contracts. Thus, another issue of the traditional banking system is addressed and solved.
The use of its token, COMP coin, aims to completely hand over control of the Compound platform to its users. COMP coin owners have the right to vote, express ideas, and make proposals on the platform, effectively putting the users in charge.
Especially after significant price increases, searches like “Buy COMP Coin, COMP coin market cap, COMP/USD” have surged. COMP coin gained considerable momentum in 2020, surpassing the leading DeFi protocol MakerDAO to claim the top spot two months ago.
Additionally, after being listed on exchanges like Binance and Coinbase, COMP/USD trading pairs saw significant increases.
Moreover, the value of cryptocurrencies locked in Compound exceeding 1 billion dollars at the end of June has led to comments that a milestone has been surpassed in the crypto ecosystem.
Looking at Compound coin’s data on CoinMarketCap, it is notable that the token has risen to the 26th position in terms of market capitalization. It’s important to highlight the significance of a crypto coin moving up to such a high rank in a short period.
Additionally, at the time of writing, COMP coin is trading at 216.95 dollars, with its highest level reached on June 21, 2020, at 381 dollars. Moreover, COMP coin’s market capitalization being 290,305,360 USD is also mentioned as a significant achievement.
You can safely purchase Compound Coin, which has become one of the most popular cryptocurrencies of 2020, from Binance, the world’s highest volume cryptocurrency exchange.