COMP token price rises 50% due to whale activity.

  • Compound (COMP) has increased by 8% in the last 24 hours and 51% in the past week.
  • The rise in COMP token value is attributed to the increased activity of large holders.
  • Another factor contributing to the bullish trend is the market’s response to Coinbase’s reaction to SEC allegations regarding the listing of securities.

The surge in whale activity has caused the price of COMP, the native token of DeFi protocol Compound, to reach levels last seen in early March.

According to blockchain analyst Loookonchain, the increase in Compound’s price coincides with heightened activity by major holders. One of these wallets deposited $3.5 million worth of stablecoin Tether (USDT) on Binance earlier this week and acquired 50,000 COMP.

The same whale added an additional 120,000 COMP tokens to their holdings on Thursday.

The price of $COMP has risen by almost 50% in the past week, and it appears a whale/institution may have bought $COMP!

Wallet “0x0D5” deposited 3 million USDT to #Binance on June 26 and withdrew 50,000 COMP ($2.26 million) 16 hours ago. https://t.co/gMLDUwJVst pic.twitter.com/IXyocTJKVh

— Lookonchain (@lookonchain) June 29, 2023

As of now, the daily trading volume for Compound stands at $89 million, indicating a 12% decrease in the past 24 hours. However, it remains significantly higher compared to the volume observed throughout the month.

For example, historical data shows that the 24-hour volume ranged between $9.4 million and $13 million from June 17 to June 25, before spiking to $154 million on June 26.

COMP price also spikes amid Coinbase’s response to the SEC

On Coinbase, COMP reached a peak of $47.98 as of 6:45 am ET on Thursday. According to CoinGecko, the token’s value has increased by 8% in the past 24 hours and over 51% in the past seven days.

However, this recent surge coincides with Coinbase’s filing of a response to the SEC’s lawsuit.

On June 29, Coinbase submitted a notice of intent to dismiss the SEC’s case against them. The exchange argues that the regulator has exceeded its jurisdiction and that the assets traded on their secondary market are not under the SEC’s authority.

Coinbase asserts that the listed assets are not “securities” as alleged by the SEC. Paul Grewal, Chief Legal Officer at Coinbase, states that the exchange is willing to engage with regulators, but the SEC’s claims go beyond existing laws and should be dismissed.

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