Due to the dynamic nature of real-world graphs, there has been a growing interest in the graph-streaming setting where a continuous stream of graph updates is mixed with arbitrary graph queries. In principle, purely-functional trees are an ideal choice for this setting due as they enable safe parallelism, lightweight snapshots, and strict serializability for queries. However, directly using them for graph processing would lead to significant space overhead and poor cache locality. This paper presents C-trees, a compressed purely-functional search tree data structure that significantly improves on the space usage and locality of purely-functional trees. The key idea is to use a chunking technique over trees in order to store multiple entries per tree-node. We design theoretically-efficient and practical algorithms for performing batch updates to C-trees, and also show that we can store massive dynamic real-world graphs using only a few bytes per edge, thereby achieving space usage close to that of the best static graph processing frameworks. To study the efficiency and applicability of our data structure, we designed Aspen, a graph-streaming framework that extends the interface of Ligra with operations for updating graphs. We show that Aspen is faster than two state-of-the-art graph-streaming systems, Stinger and LLAMA, while requiring less memory, and is competitive in performance with the state-of-the-art static graph frameworks, Galois, GAP, and Ligra+. With Aspen, we are able to efficiently process the largest publicly-available graph with over two hundred billion edges in the graph-streaming setting using a single commodity multicore server with 1TB of memory.