CAP Token Climbs to #2 Lending-Borrowing Protocol by Volume, 10 Days After Launch

Ten days after its token generation event, Cap's CAP token has become the second-most-traded lending and borrowing protocol token tracked by CoinGecko, behind only Aave.

CAP generated more than $355 million in trading volume in its first seven days on the market, Cap said in a statement, a level the company said "underscored strong market demand and positioned the protocol among DeFi's leading credit platforms."

Cumulative volume has since reached $862 million over 10 days, an average of about $78 million a day, according to Cap, which said volume spiked again over the past weekend and that the token "remains steadfast" in the number two spot by total volume.

Volume data compiled from CoinGecko for the week of June 26 to July 3 shows Aave leading the lending and borrowing category with $2.3 billion in trading volume, followed by CAP at $394 million. Maple Finance's SYRUP token ranked third at $163 million, trailing Morpho at $146 million, Compound at $99 million, and Spark at just under $99 million. CoinGecko lists CAP under its Lending/Borrowing Protocols category alongside those tokens.

Cap operates a credit platform where lenders earn yield on USD loans backed by escrowed collateral. The platform's underwriters source and vet loans to companies, posting their own collateral against default risk, a model Cap has used to originate loans including a $100 million revolving credit facility to Susquehanna Crypto. The company's investors include Franklin Templeton, Susquehanna, IMC Trading, and other financial institutions.

Volatile Token Price

CAP's trading activity has not translated into price stability. The token closed its first day of trading at a $325 million fully diluted valuation, more than 3x the $106 million valuation set in its public auction.

By July 6, CAP traded at $0.0208, putting its market cap near $32.7 million and its FDV near $210 million, down roughly 22.9% over the past seven days, according to CoinGecko.

The token hit an all-time low of about $0.0182 on July 4 before rebounding roughly 12% over the following 24 hours. Its all-time high of $0.0427 was set on launch day.'

CAP's trading is spread across more than 40 markets on CoinGecko, with Bybit accounting for the largest share of its 24-hour volume, followed by LBank and Toobit. The token has continued to add exchange listings since launch, including perpetual futures on Bitrue, Hotcoin, BloFin, and Gate in the days after its debut.

Rising TVL

Even as CAP's price fell from its debut levels, deposits into the protocol continued to climb. Total value locked reached $260.6 million as of July 6, up from $218.2 million nine days earlier, according to DefiLlama, a roughly 19% increase over the period. Cap has also processed more than $5 billion in cumulative volume across its lifetime and offers depositors 5-7% annualized yield on dollar deposits, per the company.

The Defiant previously reported on Cap's distribution of $12 million in stablecoins to early users of its dollar product.

Cap's CAP token launched June 26 following a batch auction that closed 5.5x oversubscribed at a $106 million fully diluted valuation. The token began trading simultaneously across major exchanges, including spot listings on Coinbase, Binance, Kraken, and Bybit, and perpetual futures on Binance, OKX, and Bybit, among others.