The price of Compound (COMP) suddenly increased by 25%, after unexpected news about its support in the Binance cryptosystem exchange.
COMP, an ERC-20 token from the Ethereum block chain, was launched this week on the Poloniex trading platform. Following the announcement of its support in Coinbase Pro, the value of the cryptomone currency nearly tripled from around $140-180 to a high of $427 in just a few hours, and then quickly returned to around $250.
Binance now supports pairs between COMP and Immediate Bitcoin, Tether (USDT), Binance Coin (BNB) and Binance USD (BUSD).
The Compound token suffers heavy losses but continues to top the DeFi ranking
COMP went up 25% in five minutes at Poloniex
Binance announced the introduction of COMP on its platform just one hour before allowing token trading, raising the price of cryptomoney on Poloniex from $210 to $260 in just five minutes.
COMP/USDT on Poloniex, 5-min chart
Graph per minute of the COMP/USDT pair on Poloniex. Source: TradingView
A similar increase was also recorded in Coinbase, where the value of COMP increased by 25% in half an hour.
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COMP/USD on Coinbase, 5-min chart
Since then, the price has fallen by about 10%: at the moment, COMP is around $230.
Boom DeFi: Balancer echoes Compound with a 235% rise on day one
„The rise and fall of DeFi tokens
The decentralized finance sector (DeFi) has recently become very unstable. In addition to COMP, the price of the Balancer token (BAL) also increased by 235% on its first day of trading, just before falling rapidly by around 40% .
Last month, MakerDAO’s Maker Token (MKR) doubled its price from $360 to $720. After that, it contracted to the current $470.