Just yesterday, the fairly new decentralized exchange, Balancer rolled out its governance token, BAL. Within hours of its release, the token was seen rising by 131 percent.
Following The Footsteps Of COMP
2020 can undoubtedly be labeled as the most despised year in history. The entire world went haywire after the infamous COVID-19 struck the human race. Several countries have been going bankrupt and individuals have been filing for unemployment. While every market has been going downhill, decentralized finance popularly known as DeFi has been faring well.
Following the trail of lending protocol Compound, decentralized exchange, Balancer released its own governance token, BAL. Just yesterday, the Balancer team announced that the BAL token was live on the Ethereum mainnet. Even though this token is not even a day old, it seemed to be performing admirably.
As per CoinGecko, the BAL token was trading at a low of $7.73 on 23 June 2020. However, earlier today, the token went up to a high of $22.28. At the time of writing, BAL was trading at $20.30 with a 130.1 percent increase in its price.
Furthermore, the blog post suggested that the maximum supply of the token was 100 million and the total minted supply of BAL was currently at 35,435,000. The distribution rate every week was 145,000 which was about 7.5 million BAL per annum.
Both, the COMP governance token and Balancer’s governance token seem to be following similar trends. The COMP token took the crypto-verse by storm after it observed a significant price rally. Apart from its price, both these platforms have displayed a stronghold in the DeFi space. Compound took over the DeFi space after it locked a total value of $577 million. Balancer also surpassed Uniswap and locked a total of $62.8 million and also recorded a 42.22 percent increase over the past 24-hours.
COMP’s Price Drops
The entire crypto market was experiencing a carnage as the price of almost every coin was witnessing significant reductions. According to CoinMarketCap’s list, the COMP token was the most affected as its price was falling by 27.54 percent over the last 24-hours. At the time of writing, the token’s price was $222.32 with a market cap of $550,850,463.
Despite this price drop, most of the Ethereum run DeFi platforms have been touted as successful. Furthermore, several members of the cryptocurrency community have been suggesting that the Ethereum community has been prepping the right way for Ethereum 2.0.