Compound, an ethereum based token launched just six days ago is now close to reaching a $4 billion market cap.
It’s price has increased by another 78% today as seen above, making it a week long rise by about 50% daily.
There are meant to be 10 million comp tokens in total, currently priced at $363 each, significantly more than ethereum’s current price of $230 based on a total eth supply of 111 million.
For Compound only 2.5 million are currently circulating, tradable on numerous exchanges at this point and from Monday it will be available on Coinbase Pro as well.
Some 4 million comp tokens are in the process of being distributed to the users of the financial dapp which has seen a 5x increase in its assets under management for the past week.
That increase was due to the launch of the token, with a new business model now arising whereby a dapp can build a product and attract users, then it can go public through a token distribution.
That token is usually to run the dapp itself through code based improvement proposals and votes, making it a utility token.
So bringing once again a business model for open source code with it starting at $4 billion for this dapp, leading to other defi dapps like Curve and Balancer to launch their own token distribution.
Neither is yet available on the market, but this may be just the beginning of a new chapter in the crypto movement.