Compound (COMP) Is Now A Must-Watch DeFi Lending Protocol – Here’s Why

Compound (COMP) is a decentralized finance crypto lending protocol that provides customers with the chance to earn interest on their crypto assets by depositing them into certain pools. Since the launch of the Compound mainnet in 2018, the platform has skyrocketed in popularity and recently passed more than $800 million in TVL. 

Compound (COMP) is currently showing signs of a price rally despite clear evidence of declining momentum, indicating a significant drop. In between the first two weeks of July, COMP’s price surged to $70 to $76.10 respectively. While this surge appears normal, there are still notable signs of reversal as the wave trend indicator beamed a bearish sentiment on July 7 in the overbought region, triggering selling pressure.

Despite the declining momentum, COMP price continued rising and it prompted the bearish divergence, a second sell sign. However, the bearish divergence often leads to a downtrend since the correction perspective of the COMP price depends on n various sell signals.

The past few weeks have been the most productive with its price rising from $69 to $73. The COMP is now trading at $68.04.

Meanwhile, a whale related to the Compound team has deposited 20,000 COMP tokens that are worth $1.5 million to Coinbase. As a result, this transaction has caught the attention of the crypto market and now raising questions about the reason behind the whale transaction. What’s sparked their interest is that the same whale account holds a total of 402,462 COMP tokens that are worth $29.8 million.