Compound Cryptocurrency Analysis and Comparative Daily Growth Rates vs. Chainlink





Overview

One of the first pioneers in providing returns for only holding. The coin was launched this summer with the original firm developed in 2017. The Compound protocol is one of the first widely used systems built on Ethereum, with tens of thousands of users, and dozens of applications integrating Compound.


Analysis


If you consider Chainlink as the S&P 500 benchmark for Defi - the correlations on per day growth are similar. The two typically do well on weekends - with results mixed during the week on Friday and Saturday.


In the short-term I believe that Compound will correlate with the rest of the Cryptocurrency market. The main difference between Compound and many other recently initiated DeFi projects is that Compound has headquarters in San Francisco and can ideally navigate the legal requirements for financial regulations. If done well - it could post a long-term boost to the project. If the US government increases regulation and scrutiny on DeFi projects - Compound will have a disadvantage with its US presence.


Investors: Coinbase, Andreessen Horowitz, crypto hedge fund Polychain Capital and Bain Capital Ventures —



Coinbase stats - 10-8-2020


Market cap $276.9M

Volume (24 hours) $118.9M

Circulating supply 2.6M COMP


Coin Guecko - 10-8-2020


Market Cap $360,588,901


24 Hour Trading Vol $70,970,397


24h Low / 24h High $103.08 / $113.63



Circulating Supply 3,320,985 / 10,000,000


Fully Diluted Valuation $1,085,788,953


Max Supply 10,000,000


Total Value Locked (TVL) $827,664,652

Market Cap / TVL Ratio 0.44