Compound (COMP): What You Should Know Besides Impressive 103% Rally

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The recovering markets saw some cryptos outperforming other alt’s and also expectations by their investors. Compound (COMP) is among such alternative tokens. The decentralized finance lending platform had its coin on massive upswings, triggering equally colossal actions by investors.

Attractive COMP

This alternative token has impressed cryptocurrency enthusiasts due to its price enactment, and the reason it left many disappointed comes from the protocol’s performance.

First and foremost, though COMP remained among the few alts to kick-start rallies later that peer, it still recorded a 103.3% upswing within a week, following bullish cues catalyzed by the broad market.

However, beware that COMP holders comprise a bunch of volatile investors. The crypto project has confirmed such narratives throughout May, with these investors dumping approximately 200K Compound tokens worth around $29 million.

Maintaining the precedent, the holders purchase back COMP coins worth $25 million as Compound revealed an upside stance within the past seven days. Moreover, the investors seem unbothered by potential retracements.

Meanwhile, the price surge plus buying activity saw Compound’s market value advancing by around 21%, presenting some recovery semblance for COMP investors.

Disappointments

Let us check how the alt disappoints its investors. As a lending app, Compound has declined more than its rivals. The LTV (loan to Value) ratio, which counts the amount borrowed by holders to deposit amount on the platform, currently hovers at -13% – the lowest Compound has ever seen.

The same Loan to Value stands at 95% for AAVE, whereas Maker DAO has the metric at 225%. That’s because cash loaned by Compound maintained steady declines plus the deposits.

Meanwhile, the two Lending decentralize apps saw a considerable plunge in deposits, though loans weren’t hit severely, thus the above-par performance. Therefore, Compound should attract users to borrow and deposit on the platform.

Meanwhile, the crypto market remained somewhat calm within the past day, with leading assets recording slight movements. Nevertheless, the marketplace saw bearish tendencies.

While publishing this content, the overall crypto market capitalization stood at $950.98 billion, following a 1.22% drop over the previous day. Let’s check what upcoming price movements will depict. Stay tuned.


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