In a period of relative stability in the cryptocurrency market, the native token of Compound, a decentralized finance (DeFi) protocol, experienced a remarkable surge.
Compound (COMP) witnessed a substantial increase of over 88% in a week, soaring from $30 to $57.5. This surge was attributed to a notable spike in trading volume and capital outflows observed on the Binance platform.
A blockchain analytics firm called Lookonchain recently highlighted an interesting observation. They noted that a specific wallet made a deposit of $3.5 million worth of Tether (USDT) into the Binance exchange on June 26.
Subsequently, on Wednesday, the wallet withdrew 50,000 COMP tokens, equivalent to $2.26 million, followed by another withdrawal of 120,000 tokens, amounting to $5.5 million, on Thursday.
Based on the observed momentum of stablecoin flowing in and Compound token flowing out, it suggested that the mentioned wallet has been consistently accumulating the DeFi token.
COMP Token Takes on Bullish Barrier in Epic Pump Attempt
At the time of writing, the price of Compound (COMP) cryptocurrency stands at $56.3. It is noteworthy that the price has experienced a significant increase, doubling in value from its low of $22.89 on June 10. Moreover, it has risen by 88% since Sunday morning.
Analyzing historical data from CoinMarketCap, the 24-hour trading volume for COMP trading pairs averaged between $10 million and $15 million from June 11 to June 24. However, there was a significant surge in volume on June 25, reaching $170 million, and another substantial increase of $282 million on June 30.Â
At present, COMP is maintaining its position above key moving averages, including the 20, 50, 100, and 200. Simultaneously, it is making efforts to stay above the resistance zone around $50. Moreover, there is a possibility of further growth as the RSI indicates an overbought condition on the daily price chart.
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