organisation [COMP] Whales ramp up accumulation, even when the price isn’t going up

  • The number of COMP whales has increased significantly over the past three months.
  • However, the price continues to fall.

Ranked as the 9th largest DeFi protocol with the largest Total Value Locked (TVL), the original Compound Finance has seen an increasing accumulation of votes over the past three months, new data from feelings open.

Read compound [COMP] Price forecast 2022-2023

According to data from the on-chain analytics platform, holders of 10,000 to 1,000,000 COMP tokens have increased their holdings from 61% of the available token supply to more than 74% over the past 90 days.

Source: feeling

In addition, the number of sharks owning between one and 10,000 corporate tokens has increased by 14% in the past three months.

Interestingly, the increasing accumulation of these major addresses has intensified amid a steady decline in the value of the token. According to CoinMarketCap, COMP was trading for $39.75 at the time of publication. Unfortunately, its price has fallen by more than 30% in the past three months.

The decrease in the COMP value is partly attributed to the effects of the FTX collapse. The token fell from a peak of $50.3 in early November to end the trading month with an index price of $37.94. This was a 25% drop in the value of the companies over the 30-day period.

performance on the chain

As the price of COMP fell, so did the daily trading volume. According to Santiment, $20.4 million in COMP tokens were traded in the past 24 hours, a 79% drop in daily trading volume over the past month.

Source: feeling

The unexpected fallout from FTX compounded COMP’s depreciation as fewer unique addresses were traded in the COMP token after the stock market crash. Since November 13th, the number of unique addresses being traded per day has decreased by more than 80%.

In addition, COMP noted a decrease in new demand. Data from Santiment revealed a significant drop in network growth after the collapse of FTX. New addresses on the COMP network are down 89% in the last month.

The strong correlation that exists between an asset’s price and its network activity means that a decrease in an asset’s network activity often leads to a corresponding decrease in its price.

Source: feeling

Finally, an assessment of COMP Network’s profit/loss ratio showed that the past month had been marked by a series of short-term surrenders by “weak hands”, many of whom sold their holdings at a loss.

While the reintroduction of “smart money” usually follows such non-performing loan cases, Comb has not noticed any such interest over the past month.

Source: feeling

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