On Jan. 30 Uniswap (UNI) and Compound (COMP) both rallied to new all-time highs as the entire DeFi sector continued to heat up. UNI soared to a new all-time high at $19.93 and COMP price did the same as it briefly traded at $340.
COMP/USDT 4-hour chart. Source: TradingView
In the past 30 days the entire decentralized finance sector has been in a strong uptrend and data from DeFi Pulse shows the total value locked has soared from $16.43 billion on Jan. 2 to a new all-time high at $27.67 billion on Jan. 30.
Total value locked in DeFi. Source: Defi Pulse
The surge in COMP price follows the recent release of a new governance module and upgrade to the comp.vote interface which now allows community members to save on gas fees by voting by signature instead of on-chain transactions.
DeFi becomes more attractive after the Robinhood debacle
This week’s controversy surrounding investment brokerages halting the markets for GameStop and AMC stock has presented DeFi and crypto exchanges as a possible alternative to the centralized traditional finance sector.
In a tweet, Compound founder, Robert Leshner said the recent developments showed that “the long-term answer” to the time it takes for trades to settle with the Depository Trust & Clearing Corporation (DTCC), “is for markets to run on blockchains.”
“Instant settlement would eliminate most of the complexity, cost, and capital requirements which plague T+2 settlement. Robinhood wouldn’t have credit obligations, or the need to turn against their own customers.”
Uniswap grants program launch backs UNI’s rally
Uniswap DEX 24-hour trading volume. Source: Uniswap
Uniswap’s grants program was unveiled on Jan. 20 as a way to help expand the exchange’s ecosystem.
Developers interested in participating now have a chance to submit a proposal and receive funding for the development of a project that adds value to the overall platform. According to Uniswap’s Twitter feed, there were “40 grant submissions to @uniswapgrants in the 14 days since applications opened up.”
UNI/USDT 4-hour chart. Source: TradingView
Since the release of the grants program, the price of UNI has increased 160% from $7.10 on Jan. 21 to its current price of $18.51. Uniswaps rising TVL, daily transaction volume and investor’s excitement over the upcoming v3 launch are additional factors backing UNI’s surge to a new all-time high.
Title: Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B
Sourced From: cointelegraph.com/news/uniswap-uni-and-compound-comp-hit-new-highs-as-defi-tvl-reaches-27-6b
Published Date: Sun, 31 Jan 2021 03:18:19 +0000
John Diaz– Stocks Market
I am John Diaz and I’m passionate about business and finance news with over 11 years in the industry starting as a writer working my way up into senior positions. I am the driving force behind topmagazinewire.com with a vision to broaden the company’s readership throughout 2019. I am an editor and reporter of “Stocks Market” category.