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Compound [COMP]: Could this upgrade curb persistent stagnancy

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Source: Pexels


Lending protocol, Compound [COMP], seems to be perturbed by the project’s inability to catch up with its peers in the Decentralized Finance (DeFi) space. This distress could have been a factor that led the cryptocurrency to proffer an upgrade for its community.

Compound Labs, the organization behind the cryptocurrency, announced via its Twitter page. The company said they were releasing a new version of the open-source protocol.

Panic no more; we’ve got you

While dissecting the details of the now-live version (Compound III or COMPv3), it was observed that users could benefit from it. At the same time, it would result in a few losses. Compound Labs referred to this latest development as a touch-up to “security, capital efficiency, and user experience.”

As per the drawdowns, COMP v3 will mean that some supported tokens on v2 will no longer be available for borrowing. However, it could seem that the upgrade offers more despite these removals.

COMP v3 will thus allow users to access single-interest loans on more “valuable” assets.

Apart from COMP, other crypto assets included Circle [USDC], Ethereum [ETH], Chainlink [LINK], Uniswap [UNI], and Wrapped Bitcoin [BTC].

Additionally, the upgrade will make room for COMP users to avoid regular liquidations. According to its founder Robert Leshner, Compound III will translate to cheaper gas fees and much less liquidation on borrowed assets.

Where does this leave COMP?

For a while, COMP has remained at almost the same point as per the DeFi Total Value Locked (TVL) standings. At press time, it stayed ninth, according to DeFiLlama.

Source: DeFiLlama

Its TVL change over the last thirty days showed a 5.54% decrease. Interestingly, it was at a moderate decrease compared to the above reductions. At press time, the COMP TVL’s worth was $2.81 billion, with about $995.65 million borrowed. 

Source: DeFiLlama

Despite the upgrade, COMP’s price was nowhere near an uptick. In fact, the coin was 4.55% down from its value of the previous day at $49.95. Although there was an 8.90% volume increase as per CoinMarketCap data, COMP price levels still remained unimpressive to investors.

Despite the upgrade, COMP’s price was nowhere near an uptick. In fact, the coin was 4.55% down from its value of the previous day at $49.95.

Although there was an 8.90% volume increase as per CoinMarketCap data, COMP price levels remained unimpressive to investors.

However, the development activity on COM did not jump. This was revealed by on-chain analytics software, Santiment. The 24-hour active addresses also followed the development activity’s trend.

With COMP failing to register a noticeable advancement despite the development, investors within its ecosystem might need to reconsider their options.

Source: Santiment

 

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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