COMP token surges 50% in 4 days due to increased whale activity on Binance.

Compound (COMP), the native token of the decentralized finance (DeFi) protocol, has seen a surge of over 50% in just four days. This increase in value can be attributed to a spike in trading volume and outflows on Binance.

Currently, COMP is trading at $45.98, which is double its lowest point of $22.89 on June 10. It has risen by 51.4% since Sunday, according to TradingView data.

Blockchain analysis firm Lookonchain discovered that a specific wallet deposited $3.5 million worth of tether (USDT) into Binance on June 26. This wallet then proceeded to withdraw 50,000 COMP tokens ($2.26 million) on Wednesday and an additional 120,000 tokens ($5.5 million) on Thursday.

The inflow of stablecoins and outflow of compound tokens indicates that this wallet has been consistently accumulating the DeFi token.

According to historical data from CoinMarketCap, the 24-hour trading volume for COMP pairs averaged between $10 million and $15 million from June 11 to June 24. However, on June 25, the volume reached $170 million, and an additional $119 million was recorded on June 27.

Many altcoins have experienced recent rallies due to Bitcoin’s rise above the $30,000 resistance level. Altcoins such as Blur and Arbitrum saw double-digit gains earlier this week while Bitcoin (BTC) and Ethereum (ETH) consolidated. This indicates a positive shift in sentiment after three months of low volatility trading at range lows.

Edited by Sandali Handagama.

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