Compound Price Up By 13.75% – Time To Buy COMP?
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Compound is a fast-rising DeFi platform that matches lenders and borrowers. The Compound protocol’s native digital token is COMP.
In the last 24hrs, the price of this asset has shown positive gains in a largely bearish crypto market, rising along with several other assets. This article explores the best time to buy COMP, and why you should invest
Compound: Leading DeFi Platform
Compound is a DeFi lending protocol that allows users to earn interest on their cryptocurrencies by depositing them into one of several pools supported by the platform.
The platform, built on Ethereum, is an open lending platform that enables users to either earn interest on their balance or take out a secured loan in a completely trustless way. It has a simple structure.
Users who take out loans from any of the Compound pools deposit collateral. Borrowers risk facing automatic liquidation if their collateral falls below a specific maintenance threshold.
The digital token that fuels the Compound platform is COMP and it’s an ERC-20 token mainly used for protocol governance and voting rights.
COMP token holders can suggest and implement changes to the Compound protocol. COMP also allows its owner to delegate or assign voting rights to someone else. Perhaps, one of the unique benefits of Compound is the utilization of DeFi Bitcoin. Compound utilizes Bitcoin in DeFi environments through an ERC-20 representation of locked Bitcoin called Wrapped Bitcoin (WBTC).
67% of all retail investor accounts lose money when trading CFDs with this provider.
COMP Price On A Bull Run
The Compound platform has more than $9 billion in total locked value. The platform’s high status in the decentralized finance space has affected its COMP token positively. The COMP token, which only launched last year, has been recording large gains since its entrance into the market.
COMP is a top digital token with over $2 billion in market cap. It currently occupies the 46th position on the most valuable crypto chart.
Investors who want to buy COMP could also take advantage of the current dip in prices. Compound’s token has grown remarkably since it launched. The COMP tokens were initially trading at $64 when they first hit public exchanges. However, the price has skyrocketed since then.
COMP started the year trading at only $136 before it surged to a record high price of $535.29 in February. By April, the price had dropped to $475.9. However, it increased by over 79% in barely 22 days and reached its all-time high of $911.20 in May.
But like almost all other cryptocurrencies, COMP was affected by the crypto crash of late May.
The price lost just under 60% in twelve days and sunk to $344.54 on May 24. As of June 9, it had risen slightly to $367.37 but soon plunged to $225.18 about two weeks later. COMP rallied again and traded at $492.96 on July 5 before falling to $338.79 on July 19.
At press time, COMP trades at $449.34 and is up by 13.75%. This rally has seen investors’ interest shoot up as they are encouraged to buy COMP.
COMP Technical And Fundamental Analysis
The COMP token has strong technicals as seen on the trading chart. The digital asset is trading below the 20-day moving average (MA) support at $455.26 which signals a bullish trend. Its relative strength index (RSI) is at the oversold level at 30.23.
Analysts believe that the token would double in value in a year and so now might be a good time to buy COMP. According to Wallet Investor, COMP will likely trade for $765.544 in a year.
