Despite its popularity, Compound’s COMP token witnessed a massive drop in its price. However, the token observed brief recovery after Malta-based cryptocurrency exchange, Binance extended its support for the token.
COMP’s Brief Recovery
Decentralized finance [DeFi] has been taking the crypto-verse by storm as several platforms of the DeFi space have been rolling out new tokens into the market. Lending platform, Compound and decentralized exchange, Balancer recently released their respective governance tokens. These tokens were lauded for their significant price movement just days after their release.
The fervor around the COMP token was so high that it pushed its price up to a high of $372.27 just few days after its release. However, this upward trajectory didn’t last for long, the price of the governance token was plummeting by almost 27 percent to a low of $194.80.
Despite this dip, the token witnessed a brief recovery over the last 24-hours. This dainty recovery is speculated to be the result of a new listing. The token was trading at a low of $202, however, soon after Binance made the announcement of the listing, the price of the token shot up to a high of $243.46.
COMP Token Finds Shelter In Binance
Earlier today, Malta-based cryptocurrency exchange, Binance announced its support for Compound’s governance token. The exchange took to Twitter to share the news with the community. The tweet read,
— Binance (@binance) June 25, 2020
Furthermore, the platform published a blog post that shed light on the latest listing. As per Binance’s post, the COMP token would be available for trading from 25 June 2020 post 6:00 AM [UTC]. The token will reportedly be paired against prominent cryptocurrencies including, Bitcoin [BTC], Binance Coin [BNB], Binance USD [BUSD], as well as stablecoin Tether [USDT].
The exchange claimed to have charged zero BNB for listing the COMP token.
Last week, the price of the COMP token witnessed a significant increase and several speculated that Coinbase listing the token could have fueled its price. Unlike the last time, the price of the COMP token didn’t seem to continue its journey uphill. The coin was seen dropping by 1.29 percent, at the time of writing.
Additionally, Compound has taken over the DeFi space as the largest DeFi protocol. The lending platform alone recorded a total of $569.1 million, further creating a huge disparity between the two largest platforms of DeFi, Maker and Compound.
The popularity that COMP has garnered could help the token find shelter in several other exchanges.
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Sahana Kiran is a graduate in Political Science, Economics and Journalism. She is a full-time crypto writer at CoinGape and takes a keen interest in cryptocurrencies, especially Ethereum and Bitcoin. Even though she’s not a HODLER yet, she has eyes on Bitcoin.