Compound, a DeFi heavyweight, has done well in the past few weeks even as the total value locked (TVL) in its ecosystem slipped. COMP was trading at $60 on Monday, sharply higher than last month’s low of $23.65.
DeFi volume falling
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Compound is one of the biggest Ethereum DeFi protocols in the world. It has a TVL of over $3 billion, making it the eighth biggest player globally. It is the second-biggest lending network after AAVE.
COMP, its native token, is also popular among investors. It has a market cap of over $463 million, making it the 83rd biggest cryptocurrency in the industry.
The COMP token has jumped in the past few weeks. After easing last week, COMP rebounded sharply during the weekend as volume rose. Data compiled by CoinMarketCap shows that the volume jumped to $136 million in the past 24 hours, a 221% increase. The volume to market cap stands at 29.62%.
This performance happened even as the value locked in its ecosystem dropped. Data by DeFi Llama shows that the TVL has jumped by 21% in dollar terms in the past 30 days. This dollar increase is mostly because of the strong performance of cryptocurrencies.
In contrast, the TVL has been in a steady decline in ETH terms. It has dropped to 1.76 million ETH, the lowest level since March 2021. At its peak, Compound had over 4.6 million ETH locked in its ecosystem.
Further data shows that Compound’s fees have been a bit steady lately. They average less than 50 ETH per day, down from over 1k ETH during its peak.
Compound price prediction
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The daily chart shows that the COMP price has made a bullish trend in the past few weeks. After peaking at $71.12 in June, the token has eased slightly to the current $60. It remains above the 25-day and 50-day moving averages and a few points below the important resistance point at $63.35.
Therefore, while Compound’s fundamentals are not all that great, technicals suggest that the token could continue rising in the coming days. This view will be confirmed if it moves above the key resistance level at $63.35. A drop below the support at $51.57 will invalidate the bullish view.
Sourced from cryptonews.net.
