The decentralized finance sector has continued to establish its dominance in the crypto sector even as it is fighting off competition from the non-fungible token sector. While all the sector protocols are showing all their dominance, one platform has gone ahead to break records. Looking at the recent trends, Compound has beaten off competition from other protocols in the sector to become the first protocol to hit a total value locked of about $10 billion. This recent growth is coming on the back of series of upgrades and good performance that the sector has witnessed in the last few weeks in the DeFi sector.
Compound recorded a five-fold growth
The Total Value Locked is a phenomenon used to calculate the actual worth of a protocol in the DeFi sector. This high TVL on the part of Compound shows that the protocol has the most worth, and people are pooling their funds into the protocol. Compound has recorded massive growths since the start of the year, which has pushed analysts to note that the protocol would only go further up in the market.
It is also a milestone figure for the entity, judging by the small $2 billion TVL that it held when the year started. This new figure has shown that Compound has grown five times the previous amount that it was worth in just about four months.
The price of the native asset of the protocol had seen steady growth since when the year started. The price of the asset was previously$114 at the start of the year but has grown miles above and now goes for a price around $400. Its market capitalization is not also left out, with Compound now boasting a figure close to $2.29 billion.
Traders continue to enter the DeFi sector
The protocols in the decentralized finance sector have continued to see massive growth. The protocols burst into the limelight towards the end of last year as the TVL began to rise massively as more people continued to enter the market. As it stands now, a DeFi Pulse report claims that the total TVL on the market has now grown to touch its new destination at $52 billion.
This shows that since the start of this year, the decentralized finance sector has seen around 350%. The leading protocols in the sector, Aave, Compound, and a few others, are mainly responsible for the rise that has been recorded in the market of late.
With the market continuing to perform well despite various scams and hacks, it is only reasonable to note that the sector would continue to do well. Even though scams and hacks are still present in the market, regulators have limited the way hackers operate.