Compound. Deposits decide

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Santrends
Jun 29, 2021

Assets covered: Compound (COMP)

Metrics used: Active Addresses, Daily Active Deposits, Exchange Inflow, Network Profit Loss, Social Volume



There are a few coins that were pumping on Tuesday. For the first time there were coins that are being able to break out of the "strong hold" of Bitcoin and chart their own path. One of these is Compound, breaking out more than some others and making a strong move to the upside.


Active Addresses


Onchain activity is on a strong uptick:

Source: Sanbase

But looking at previous strong spikes we would not feel so confident. They were very short living and COMP dumped quite soon. During these upticks people may want to sell.


Daily Active Deposits


It's starting to rise. But it's on an uptrend.

Source: Sanbase

If we look at previous deposit spikes - they all pointed to a local tops. It could confirm the fact that a spike in DAD is actually not a good sign for Compound. The thing is - how high is the latest bar going to end up last day, when we're writing this?


Exchange Inflow


COMP seems to be experiencing some uptick in exchange inflow along side it's rally. It seems like people are starting to take advantage of it's price action:

Source: Sanbase


Network Profit Loss (NPL)


We are not however seeing any major moves in NPL which is curious. Just a little bit:

Source: Sanbase

Well actually, funny enough, if you look at the last month of COMP's NPL data it seems like that it's the highest! Everything else has just been a blood bath:

Source: Sanbase

NPL just declining and declining. Even during upticks people just seem to be getting away from this coin. So yeah, the latest spike is relatively low but actually it's a first time in a while that we see it moving to the positive. People are very quick to take even small profits.


Social volume


There we go! That's the game right there:

Source: Sanbase

There's a lot of COMP mentions around social media lately. Also moving back into positive sentiment. Why? May be this, Announcing Compound Treasury, for Businesses & Institutions.


Overall


A big spike in social volume + exchange inflow starting to spike + NPL starting to spike.

Perhaps for now we might be approaching a local top. Or at least a consolidation period. Especially if the deposits spike end up being strong.


The latest active addresses spike is great, but previous times it hasn't lasted for long. So what you probably should be looking for next 24-48 hours is whether DAD completes itself to the upside or it moves into the oblivion like we've seen on previous local tops. What it suggests is that it's just an uptick in the amount of people selling COMP rather than any type of a sustained rising onchain activity.


Take care.



Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

COMPDEFI
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Santrends
Jun 29, 2021

Thanks for reading!

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