You can read my introduction to COMP tokens in my previous article here.
COMP token frenzy of the last month of June
After the Compound team launched the platform’s COMP tokens, investors did what they could to earn more COMP tokens. COMP tokens were distributed to the users of the Compound protocol; with all those who lent and borrowed in the platform being eligible to earn COMP tokens.
To get maximum COMP tokens users deposited their digital assets at the platform to earn COMP tokens and also borrowed from their deposit, thus earning COMP through both ways of lending and borrowing. Of course this is risky indeed but last month such was the frenzy to acquire the COMP tokens!! Crazy.
Comp token distribution for lending and borrowing of digital assets in Compound platform
Top DEFI platform of JUNE with the highest Total value of locked tokens in it
Compound is the top 2 Defi platform in terms of total value of locked tokens in the platform
That is why Compound for a while topped as a DEFI platform with the highest Total Value locked (TVL) , meaning the platform had the highest USD value of ETH and ERC-20 tokens locked in it. Even now, Compound is the second top DEFI platform in terms of TVL after MakerDao.
Although there is a decline in the TVL values for the last few days, meaning less tokens maybe locked in the protocol than before, with the aggregate USD value of the tokens now locked in the platform now lower than before.
From June 18th the total value of locked tokens has been on decline signifying less tokens are locked in the platform
In terms of DEFI market cap - Compound is leading with Compound Dai at top, probably because most COMP tokens are distributed to those who lend and borrow Dai.
COMP is the top token in terms of market cap
COMP Technical Price Analysis
Now let’s come to the current price of the COMP tokens which is 157$, it’s been on a decline with the price falling to 153$ and finding support there as the price climbs to 157$ as I am writing this piece. There is resistance at 159$ which COMP has been struggling to break now.
Yesterday it looked like support was formed at 156$ which today it briefly failed to keep, however price is now 157$.
Support levels for COMP token are at - 152$,153$ and 154$.
The MACD signals a decline in price momentum, it may mean that the price of COMP may still decline further, before settling down.
Coingecko, data says that COMP has had a 57% correction from it’s ATH it experienced last month.
To know about COMP token, you can read the article I wrote earlier here -: https://www.publish0x.com/investing-and-trading/exploring-the-recent-defi-world-s-craze-comp-tokens-and-the-xjjynmo
