Polygon integration may positively impact Compound Finance’s TVL, despite some limitations COMP holders have reduced a significant portion of their asset holdings DeFi lending protocol Compound Finance is in the news after it announced finally deploying its third version to Polygon. Contextually, Compound III is a streamlined version of the main Compound protocol. Here, the […]
, Compound Finance had a TVL of $1.89 billion at press time. This positioned the project in ninth across the DeFi ecosystem. Here, the TVL measures the volume of crypto-assets bound by smart contracts in a particular protocol.For its part, Compound’s TVL has fallen by 4.25% in the last 30 days alone. This has left it at one of its lowest points since 2022. This drop also implies that investor interest in the protocol is now nowhere near its height.
However, the recently-announced partnership could help Compound exit the status quo. Although it is not guaranteed, the public interest in Polygon might play a part and possibly trigger more unique deposits into protocols under Compound Finance. Meanwhile, COMP active addresses are far below that of Polygon. The metric acts as a good indicator of daily transactions over a particular blockchain.were 163000 while the same for COMP were 259. Thus, Compound interaction with Polygon has a chance to improve the protocol’s unique transactions.