Strong Whale Purchases Leads to 20% Surge for DeFi Token Compound (COMP)

Bhushan Akolkar
January 30, 2021
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Just at the time when the crypto DeFi market is cooling down after a major rally earlier this week, DeFi token Compound (COMP) has made a strong surge northwards. As of writing this story, the COMP price is 22% up trading at $301 and a market cap of $1.38 billion.

With this move, COMP has extended its weekly gains to 50% and its year-to-date gains at 111%. The latest price rally in Compound (COMP) comes on the backdrop of improving fundamentals and rising whale purchases.

On-chain data provider Santiment notes that post the Bitcoin breakout on Friday, several altcoins have flipped, however, Compound has only decoupled the most with Bitcoin. This development comes as the number of whale addresses holding more than 10K COMP tokens, hits an all-time high.

Courtesy: Santiment

Is Compound Emerging As A DeFi Blue Chip

With the recent move, Compound seems to gain strength on multiple points. With its recent price surge, COMP has also left behind UniSwap in terms of the total-value-locked (TVL). As per data on DeFi Pulse, the total-value-locked (TVL) in Compound is currently is $3.22 billion.

It means COMP alone contributes over 12% in the total DeFi market TVL. Also, this move has helped DeFi to be in the third position in terms of TVL. A Twitter crypto handle @CryptoCountant there’s still more steam left for the Compound price to surge from here. He notes it based on the fact that the total volume in COMP is only 11.8% of the total value locked.

Thus, the analysts believe that COMP has the potential to emerge as a Blue-chip DeFi token in the future. Currently, COMP is the 8th largest crypto DeFi token by market cap. It will be interesting to see if COMP can enter the top-five list in near future. Just like COMP, the UniSwap (UNI) crypto DeFi token has also registered strong growth this month.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.