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.
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.
• 303% of total value locked – $3.14 billion USD
• 42.2% Market dilution – $1 billion USD
Volume is lagging behind with 11.8% of its market cap.
Price might pick up with more volume. pic.twitter.com/5lxegjYWaz
— Seco ₿ (@CryptoCountant) January 29, 2021
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.