Compound Price Up By 3% – Time To Buy COMP?

Decentralized finance (DeFi) is an exciting sub-sector in the crypto space. This is apparent by the amount of value locked in the DeFi space.

Several DeFi protocols lead the emerging space, with Compound Finance playing a critical role in the evolving space.

Since launching in 2018, the decentralized lending protocol has attracted interest, and its COMP token has grown in value.

With the token rallying despite the market downturn, many investors are looking to buy COMP.

Compound Finance: Popular DeFi Lending Platform

From the onset, DeFi is out to revolutionize how we make and spend money. Powered by blockchain technology, this innovative process offers similar financial services to traditional banking institutions, including earning interest on savings, lending, borrowing, and asset management.

DeFi allows users to access financial services in a decentralized and trustless manner without involving any third party, meaning the banks. Where it differs is the process it employs in servicing eager customers.

Another difference is that it does not use fiat currencies as we know but leverages tokenized currencies through users who can thrive in its ecosystem.

Compound Finance is one such platform that enables the continued running of DeFi services. The protocol allows users to deposit liquidity to several pools in the platform, and others can take from these pools and return the borrowed sum with interest.

The interests derived are given to the lenders or liquidity providers (LPs), and they get rewarded with tokens.

The cTokens show how much stake the lender has in a particular pool, and they can be used to redeem the underlying asset they initially deposited later on.

With many investors just holding on to their digital assets with the hope that they will appreciate with time, Compound presents a unique way to make passive income without losing their crypto investments.

Currently occupying the number four position on the top DeFi protocols by market cap, Compound uses the COMP native token to power its protocol. It is used for governance and settlement of fees on the platform.

67% of all retail investor accounts lose money when trading CFDs with this provider

COMP: Welcoming The Bulls Once Again

After a trying June, things are eventually looking up for the lending protocol. Its 24-hour trading volume is up 40.09%, while the overall market cap is also seeing major improvement and is up 2.36% and stands at over $2.2 billion.

This positive return on investment (ROI) builds market confidence, and investors want to buy COMP.

At press time, COMP is trading at $423.59, up 3.40% in the last 24 hours. This remarkable turn of fortune does not tell the entire story.

COMP token has seen much volatility after opening the year with a $145.39 price peg. It grew more than 500% and surged to $854.48 on May 11. However, it struggled to retain this position and dipped more than 50% to $342.96 two weeks later. It has since rebounded and tested the $492.96 level.

COMP Technical And Fundamental Analysis

Its technicals are good. The ERC-20 token is trading above the short-term 20-day moving average (MA) support of $386.90, meaning it is on a bull run. Its relative strength index (RSI) is also promising and is at 55.97.

On the fundamentals, Compound Finance is looking to expand its offerings to attract institutional investors. In a June 29 post, the DeFi protocol announced the launch of the Compound Treasury, which is meant to target non-crypto native businesses and financial institutions.

According to the Compound team, these businesses can access the benefits inherent in the burgeoning DeFi industry.
This institutional adoption has been bullish on the future price of the token. According to Wallet Investor, COMP will rise to $821.36 while its five-year forecast is at $2,366.60.

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