Decentralized lending protocol Compound's outstanding debt on Ethereum surpassed $1 billion-- the highest it has been in a year, according to The Block's data dashboard.
The increase in outstanding debt represents a shift in the crypto market, which was hammered by a credit crisis in 2022. Across the board lenders from BlockFi to Celsius declared bankruptcy, resulting in a gap in crypto's market structure. On July 14, outstanding debt stood at $1.07 billion.
Compound is a money market protocol where users can borrow and lend assets. Interest rates are determined algorithmically. COMP token holders govern the Compound protocol.
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