Bitcoin is going through a strange time. As this article is being put out, the world’s number one digital currency by market cap has dropped into the $9,200 spot, meaning it has lost about $200 from its price over the past few days, but other coins – altcoins like Compound – are booming, and reserving places for themselves in the top regions of the crypto market.
Compound Is Surging Like No Other Coin
At the time of writing, the Compound token has spiked by more than 250 percent, which means its market cap has shot up to about $2 billion. The news comes in the wake of Coinbase – one of the largest and most popular cryptocurrency exchanges in the world – announcing that Compound would be added to its list of available assets beginning on Monday, June 22. Beginning on that date, customers of the trading platform will have the option to buy, sell and trade this rising star in the crypto scene.
Coinbase stated in a blog post:
Once sufficient supply of comp is established on one platform, trading on our comp-U.S. dollar and comp-bitcoin order books will start in phases, beginning with post-only mode and proceeding to full trading should our metrics for a healthy market be met.
At press time, Compound now stands as the world’s 25th-largest cryptocurrency by market cap. The price of one unit of the currency stands beyond the $200 position. This is huge considering it was trading for a mere $60 at the beginning of the week. That means in just a matter of days, the currency has more than tripled in price and added more than $140 to its overall value.
As good as all this sounds, however, the currency is nowhere near the status or strength of bitcoin, which at press time, has a market cap of roughly $170 billion. Some analysts are claiming that the $2 billion market value stated for Compound is inaccurate, and instead believe that the asset’s value is somewhere at around $500 million – considerably less than where BTC stands.
In addition, Compound appears relatively small in the sense that very few exchanges are willing to provide it to customers. It comes from a largely decentralized platform, and thus its availability on major trading platforms is limited.
The one big thing that Compound has in its favor is that it is often rewarded to users who contribute to the Compound community or influence the direction it takes. Thus, on the idea that they will earn rewards for their work, many could soon look to ensure that Compound pushes its way forward into the world of crypto’s top ten.
Some Don’t Believe in the Jump
Haseeb Qureshi – managing partner of Dragonfly Capital – had this to say about the coin:
Most of the comp’s price fluctuations are a function of the tiny float. I wouldn’t read too much into the current price.