Compound [COMP]: With a 103% rally to its credit, here’s how the token still manages to disappoint many

ambcrypto.com:

In the recovering marker, some cryptocurrencies outperformed not only other altcoins but also their investors’ expectations, and one of them was Compound [COMP]. The DeFi Lending protocol token marked a massive rise, provoking investors to make equally massive moves.

The reason why this altcoin has impressed investors is due to its native token COMP’s performance, and the reason it has disappointed many can be traced back to the protocol’s performance.

Firstly, although COMP was one of the fewer altcoins to start rallying later than its compadres, it still managed to register a rise of 103.3% in the span of just a week triggered by the broader market’s bullish cues.

Compound price action | Source: TradingView – AMBCrypto

What’s to be noted, though, is that COMP holders are a volatile bunch of investors, and this has been verified over and over again as back in May, towards the end of the month, these same investors dumped about 200k COMP worth about $29 million.

Following that precedent, in the last seven days, the same duration as COMP’s rally, these investors bought back $25 million worth of COMP tokens with no regard for a possible retracement.

Compound investors buying | Source: Santiment – AMBCrypto

The rise, combined with the buying, also improved Compound’s market value by almost 21%, providing its investors some semblance of a recovery.

Compound market value | Source: Santiment – AMBCrypto

Moving on to the part where the token disappoints. As a Lending Dapp, Compound has been observing far more depreciation than its competitors.

The Loan to Value (LTV) ratio, which calculates the ratio of all the amount borrowed by users to the amount deposited onto the protocol, currently stands at -13%, the lowest for Compound. 

The