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Compound Finance’s [COMP] TVL May Not Stop a Pullback, Here’s Why

Published 21/07/2023, 12:03
Compound Finance’s [COMP] TVL May Not Stop a Pullback, Here’s Why

  • COMP increased by 155% in the last 30 days and the TVL followed suit.

  • Bulls’ attempt to revive demand at $72.12 has been neutralized by selling pressure.

  • COMP may pull back to $65.56 depending on EMAs and Stoch RSI trend.

In the last 30 days, Compound Finance’s (COMP) Total Value Locked (TVL) has grown by 22.09%. According to TVL aggregator DefiLlama, Compound’s TVL growth was much more than Lido Finance (LDO) and Aave (AAVE) within the same period.

TVL and Price Spike

For context, the TVL shows the total value of assets locked or staked in decentralized Applications (dApps) operating under a DeFi protocol. Therefore, the increase in Compound’s TVL means that investors perceived the protocol to be more trustworthy.

Compound Finance TVL (Source: DefiLlama)

Like the TVL, the liquidity in Compound also followed the same path. The growth in liquidity suggests that there has been an increase in token swaps and the slippage require was not extremely high.

Similarly, COMP’s price has incredibly grown over the last 30 days. According to CoinMarketCap, COMP increased by over 155% within the said period. But with the TVL exceeding the market cap, CO…

The post Compound Finance’s [COMP] TVL May Not Stop a Pullback, Here’s Why appeared first on Coin Edition.

The post Compound Finance’s [COMP] TVL May Not Stop a Pullback, Here’s Why appeared first on Coin Edition.

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