Compound: the value of COMP continues to rise
Compound: the value of COMP continues to rise
Trading

Compound: the value of COMP continues to rise

By Federico Izzi - 22 Jun 2020

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Today the value of Compound (COMP) scores a +4% increase, continuing its rise. 

With regard to the DeFi sector, the weekend has recorded strong movements, not only for the interest but also for the tokens affected by the euphoria that flowed after the launch of the Compound (COMP) token, which in a few days has seen its value reach above $325. 

COMP 20200622

As a result, COMP is ranked 19th in the CoinMarketCap ranking, with over $800 million in capitalization.

During these days, deposits on tokens in the DeFi universe exceed $1.520 billion for the first time, beating the previous February record of $1.240 billion. 

Compound undermines Maker’s leadership in terms of total deposits on the platform. Maker records just over $450 million while Compound flies to $610 million locked in the platform. 

Compound now has a 40% dominance of all deposits on DeFi platforms. 

The value of the crypto market

With regard to the rest of the sector, the weekend, for the second consecutive time, recorded a quiet period with low volumes: in fact, the total trading volumes over the weekend are in line with the previous one, marking the lowest volumes since the end of February.

coin360 20200622
Source: COIN360.com

However, the week starts with a prevalence of green signs, mainly due to the low volatility over the weekend. 

Daily volatility on a monthly and 60-day basis slips below 3% for Bitcoin, the lowest point since early March, before the pre-Covid crisis.

In the last few hours, there is also a surge of Basic Attention Token (BAT) which in these hours marks the highest performance with over 20%. 

Wrapped Bitcoin on the rise

During the last few days, there has also been a particular DeFi frenzy for Bitcoin owners who with wBTC have more than 50 million dollars locked with this asset.

Wrapped Bitcoin is a synthetic asset of Bitcoin based on ERC20, thus using Ethereum, the leading platform for locked tokens, which with the leap of these last days correspond to 2.6% of all ETH issued. 

It is a particular moment of glory for the DeFi sector that is beginning to be subjected to the attention of regulators. 

This strong interest that is increasing in such a short time will not escape. Moreover, there is also a possibility of strong speculation on the Compound token that in less than a week has seen the value soar, entering firmly among the top 20. 

Among the best rises, the day also sees other tokens in the DeFi universe such as Aave (LEND) and Synthetix Network (SNX) flying 7%. BAT and COMP gain over 4%. 

Among others, the most noticeable rises of the day are those of OMG Network (OMG), Ontology (ONT), Nexo (NEXO), which rise by more than 8%, followed by VeChain (VET) +5% and Chainlink (LINK) +3.5%. 

On the opposite side, Golem (GNT) drops by 9%, while Matic Network (MATIC) and Kyber (KNC) slide by 4%.

The market cap remains in line with last Friday’s levels, just under $267 billion. The dominance of Bitcoin slips again below 65%. Ethereum tries to regain decimal fractions of the market while XRP continues its descent and reaches new lows at 3.1%. 

BTC 20200622
Bitcoin chart by Tradingview

Bitcoin (BTC) value 

The value of Bitcoin has continued to fluctuate between 9,400-9,500 points for more than 10 days without giving any particular indication. This lateral trend continues to decrease also the volumes that during the weekend can not exceed 1.5 billion dollars. 

The wait continues for a directional movement that could explode downwards with the breaking of the 9,100 dollars, levels touched at the beginning of last week, or upwards if prices were to overwhelmingly regain the 9,900 dollars, a level that coincides with the static resistance that since the beginning of May has repeatedly rejected any bullish attack.

ETH 20200622
Ethereum chart by Tradingview

Ethereum (ETH) value

Ethereum abandons the bullish channel that has been accompanying prices since the end of March, despite the persistent signal of an attempt to recover the $235, the lower neckline of the bullish channel, with prices that in these hours are trying to return above this level coinciding with the resistance of the highs of the past week.

At the moment there are no particular signs of suffering for Ethereum, even if it is recording daily volumes below the average of the last 7 days. 

Alert signals would only come with prices below the threshold of the static support of $215, former resistance that rejected the attacks of the bulls between April and May. Ethereum would give a clear bullish signal with the recovery and push over $248 in the coming days. 

 

Federico Izzi
Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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