Maker DAO continues to outperform Compound- for following reasons

The DeFi house has some fierce rivals in its completely different classes starting from DEXes reminiscent of Uniswap and SushiSwap to NFT marketplaces like OpenSea and Magic Eden.

Within the lending class, AAVE has domination when it comes to the Complete Worth Locked (TVL) on it, holding $6 billion. Following it’s JustLend, Tron’s personal lending Dapp. And, proper after it comes Compound, the tenth largest DeFi protocol on this planet with $2.74 billion locked on it.

Compound vs MakerDAO

Within the midst of those Dapps stands MakerDAO-natively a CDP protocol- which has discovered an viewers within the lending market as properly.

Plus, being the largest DeFi utility with greater than $7.6 billion locked on it additionally helps. 

Consequently, MarkerDAO has been persistently competing with Compound in all however one facet, which is the borrowing of the protocol.

The full deposits on Compound for the reason that starting of this yr have been declining, with simply $3 billion left on the platform out of $13 billion.

On the similar time, MakerDAO’s deposits have additionally lowered from $10.8 billion to simply $1.8 billion.

Compound and MakerDAO Deposit and Loans | Supply: Dune – AMBCrypto

Nonetheless, MakerDAO as a lending protocol is performing higher as a result of the excellent loans on the platform exceed that of Compound by a mile.

Compound, up till 10 July, was noting detrimental excellent loans, which stood at $360 million on the time of writing.

Part of this progress got here from the 17.68% rally that COMP noticed on 9 July, which helped the altcoin formally shut above the $50 mark.

Compound worth motion | Supply: TradingView – AMBCrypto

Even so, it got here nowhere near MakerDAO’s $6.3 billion price of excellent loans (ref. Compound and MakerDAO Deposit and Loans picture).

For this reason within the final 12 months, whereas Compound’s Mortgage to Worth (LTV) ratio sank to -12%, MakerDAO’s rose to 243%. Thus, sitting at 343% on the time of writing.

Compound and MakerDAO LTV | Supply: Dune – AMBCrypto

All this goes to say that Compound may want to assemble a a lot bigger viewers to compete with MakerDAO, or else it should proceed lingering within the decrease zones.

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