Cryptocurrency

Compound [COMP] whales intensify accumulation, even as price fails to grow


  • The depend of COMP whales has grown considerably within the final three months.
  • Price, nonetheless, continues to fall. 

Ranked as the ninth DeFi protocol with the most important complete worth locked (TVL), Compound Finance’s native token COMP has seen elevated whale accumulation within the final three months, new information from Santiment revealed.


Read Compound’s [COMP] Price Prediction 2022-2023


According to information from the on-chain analytics platform, holders of 10,000 to 1,000,000 COMP tokens have more and more grown their holdings from 61% of the token’s obtainable provide to over 74% within the final 90 days.

Source: Santiment

In addition, the variety of sharks holding between one to 10,000 COMP tokens has grown by 14% within the final three months.

Interestingly, elevated accumulation by these key addresses has intensified amid a constant decline within the token’s worth. According to CoinMarketCap, COMP exchanged arms at $39.75 at press time. Unfortunately, its price has dropped by over 30% within the final three months.

The decline in COMP’s worth is partly attributable to the influence of FTX’s collapse. The token fell from a excessive of $50.3 originally of November to shut the buying and selling month at an index price of $37.94. This was a 25% decline in COMP’s worth inside the 30-day interval. 

On-chain efficiency

As COMP’s price fell, the every day quantity traded declined as effectively. Per Santiment, COMP tokens value $20.4 million had been traded within the final 24 hours, a 79% decline in every day buying and selling quantity within the final month.

1671068215 900 Compound COMP whales intensify accumulation even as price fails to

Source: Santiment

FTX’s sudden fallout aggravated COMP’s decline in worth as fewer distinctive addresses traded the COMP token following the trade’s collapse. Since 13 November, the depend of distinctive addresses that traded COMP every day has fallen by over 80%.

In addition, COMP logged a decline in new demand. Data from Santiment revealed a big drop in community progress following FTX’s collapse. New addresses on COMP’s community have dropped by 89% within the final month.

The robust correlation that exists between an asset’s price and its community exercise makes it such {that a} decline in an asset’s community exercise usually leads to a corresponding decline in its price. 

1671068215 10 Compound COMP whales intensify accumulation even as price fails to

Source: Santiment

Lastly, an evaluation of COMP’s Network Profit/Loss ratio (NPL) confirmed that the final month had been marked by a sequence of short-term capitulations of “weak hands,” a lot of who offered their holdings at a loss.

While the re-entry of “smart money” normally follows these NPL dips, COMP has seen no such curiosity within the final month. 

1671068215 129 Compound COMP whales intensify accumulation even as price fails to

Source: Santiment

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