As the crypto world continues to evolve with increased volatility, unique patterns emerge, attracting the interest of investors and analysts alike. One such way has been observed in the recent trading activity of Compound (COMP), the governance token tied to the Compound protocol. The asset experienced a significant surge, registering a nearly 10% growth within the past day.
Over the last 7 days, COMP has been in an uptrend, and the 10% single-day rise forms part of a larger appreciation pattern. This escalation is noteworthy as the token’s price soared over 50% within just a week.
Whale Activity Fuels Price Momentum
Blockchain analytics firm Lookonchain earlier today shed some light on the reason behind the recent COMP price surge. The firm disclosed on Twitter that a possible whale or institutional investor appears to have made substantial COMP transactions.
According to Lookonchain, “Wallet ‘0x0D5’ transferred 3 million USDT to Binance on June 26 and extracted 50,000 COMP, equating to around $2.26 million, 16 hours ago.” The same entity reportedly withdrew an additional 120,000 COMP, valued at approximately $5.53 million from Binance shortly after.
The whale/institution withdrew another 120K $COMP ($5.53M) from #Binance just now.
So the rise in the price of $COMP may have something to do with this whale/institution.https://t.co/6LfmjMxaRZ pic.twitter.com/Deh4v260qt
— Lookonchain (@lookonchain) June 29, 2023
Such considerable transfers often signify bullish behavior and could contribute to the increase in COMP’s price, given their potential influence on the token’s supply and demand dynamics.
Compound (COMP) Latest Price Action
COMP token price has increased in the past few days, with the governance token breaking multiple resistance levels. COMP is currently trading above $46, up 51.7% over the past week. The token currently has a market capitalization of $321 million, making it rank 109th among the largest cryptocurrency by market cap.
Meanwhile, over the past 24 hours, the asset has seen an upward trend of nearly 10% in price. COMP has also added more than $100 million to its market cap in the past weeks. The asset market capitalization has surged from a low of below $200 million in the past few days to as high as $321 million as of today.
COMP’s daily trading volume has also recorded a significant surge from the $10 million volume seen earlier this month to stand above $90 million in the past 24 hours. COMP currently has a 24-hour low of $38.82 and a 24-hour high of $47.39.
Notably, the token’s performance is not limited to the past day or week. When viewed over a two-week span, COMP has recorded a substantial growth pattern, registering a 70% gain. At the beginning of the month, COMP was trading at a low of $25 per token. At the time of writing, however, the token stands tall, commanding a price of $46.94.
Featured image from Unsplash, Chart from TradingView