COMP token rate rises by 61% in four days. Why it happened

From June 25 to June 29, the value of the cryptocurrency rose from $30,48 to $48

29.06.2023 - 12:50

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2 min

What’s new? The rate of the native token of the Compound (COMP) DeFi protocol rose sharply in four days after a surge in volume and outflow of funds on the Binance exchange. According to blockchain analysts at Lookonchain, an unknown wallet deposited $3,5 million worth of USDT stablecoins on the platform on June 26, followed by 50 000 COMP worth $2,26 million on June 28, and another 120 000 coins worth $5,5 million on June 29. Thus, from June 25 to 29, the COMP rate rose by 60,9%, from $30,48 to $49,05 (Binance’s data at 12:30 UTC).

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

What's known about Compound? The Ethereum blockchain-based lending protocol was founded in 2017 by Geoffrey Hayes and Robert Leshner. Compound users can request loans or earn interest by lending crypto loans via autonomous smart contracts. The COMP token is used for rewards on the network.

The influx of stablecoins to the exchange and the subsequent outflow of native tokens COMP in recent days could indicate that an unknown investor is accumulating the asset. According to historical data from aggregator CoinMarketCap, daily trading volume in COMP pairs averaged between $10 million and $15 million between June 11 and June 24. On June 25, the figure jumped to $170 million.

On June 24, the trading volume of USDT, denominated in rubles, increased more than three times. The daily figure on crypto exchanges, which still support trading in Russian currency, was about $15 million on the background of PMC Wagner’s mutiny. On June 25, Elon Musk’s comment about the attempted mutiny in the Russian Federation led to the growth of the rate of the PSYOP meme token by 2403% per day.

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