Compound (COMP) has experienced a significant surge in price, increasing by 8% in the past 24 hours and 51% over the past week. This surge has been attributed to increased whale activity and market reaction to Coinbase’s response to the Securities and Exchange Commission (SEC) allegations.

The price increase of COMP coincides with evidence of increased activity from large holders of the cryptocurrency. One whale deposited $3.5 million worth of Tether (USDT) on Binance and acquired 50,000 COMP tokens. The same whale added another 120,000 COMP tokens to their holdings on Thursday. According to blockchain analysis by Loookonchain, the price of COMP has reached levels not seen since early March.

The surge in price also comes after Coinbase filed a response to the SEC’s lawsuit. Coinbase has filed a notice of intent seeking to dismiss the case, arguing that the assets listed on its platform are not within the SEC’s authority. The exchange maintains that the listed assets are not securities as alleged by the SEC.

Despite a decrease in daily trading volume, COMP continues to experience high trading activity compared to previous months. Historical data shows a spike in trading volume on June 26, reaching $154 million, compared to the range of $9.4 million and $13 million seen from June 17 to June 25.

FAQs

What is Compound (COMP)?

Compound (COMP) is the native token of the DeFi protocol Compound. It is used for governance and as collateral for borrowing and lending.

What is whale activity in cryptocurrency?

Whale activity refers to large transactions made by individual or institutional investors in the cryptocurrency market. These large holders of crypto assets can have a significant impact on the price and market sentiment.

What are the SEC allegations against Coinbase?

The Securities and Exchange Commission (SEC) has sued Coinbase, alleging that the exchange has listed securities without registering them. The SEC claims that tokens such as Solana, Cardano, Chiliz, Flow, NEAR, and Dash are securities and should be regulated as such.

How does Coinbase’s response to the SEC allegations affect COMP price?

The response from Coinbase to the SEC’s allegations can influence market sentiment and investor confidence in the cryptocurrency market. If Coinbase is successful in dismissing the case, it could have a positive impact on the price of COMP and the overall cryptocurrency market.