Compound is among the few altcoins that offer unique crypto market experiences outside of what other tokens offer. The Compound open-source protocol allows DeFi developers to borrow and lend on Ethereum, with the interest rates being determined by the demand and supply of the token.
Compound bulls seem to be gaining momentum after the token gained 24.5% in the past 24 hours. At the time of writing, COMP is trading at $264.83.
COMP Price Analysis
Compound’s current price is over 70% less than its all-time high of $910.54 reported on May 12. It was one of the worst-hit tokens after the May crash, and its sharp bears were momentarily stopped after its price started showing some signs of stability following market support.
Even with the current bulls, COMP still has a long way to go before recovering its May ATH. The coin is trading at support levels of $260 and $250. If it breaks below $260, a further retreat to $250 may be inevitable before the token picks up and retraces to an uptrend.
On the upside, if the token manages to hold its current levels and gains support to push past $260, it needs to break beyond $280 and later to $300 for bulls to show signs of fully picking up. However, to achieve such levels, the token needs strong support from bitcoin and the entire crypto market.
Most tokens have shown slight gains in the past 24 hours following BTC’s recovery. On June 22, BTC retraced to below $30k for the first time this year. However, it recovered to $33K shortly afterwards, and it brought the crypto market up with it, including Compound.
Mark Cuban, a billionaire investor, recently showed optimism towards DeFi-based cryptocurrencies such as Compound. According to Cuban, traditional banking systems should “be scared” of these cryptocurrencies because their protocols offer everything that a bank can, but in a more secure, cheap and convenient way.
The underlying technologies of these cryptocurrencies will shape the future of finance, and holding on to lending and borrowing tokens such as COMP may be profitable in the long term.
Compound has a great dominance in the DeFi sector, with its main competitor being Aave. Compound became the first DeFi project to achieve a Total Value Locked (TVL) of more than $10 billion, showing that people have become more inclined towards lending platforms. It also shows that the token has a great demand and fan base.
Where to Buy COMP
COMP makes a great buy because of the strength of its underlying lending protocol. To purchase COMP tokens, you can create an account on eToro, one of the most reliable and secure exchanges. eToro offers competitive trading fees, and a unique set of features enable traders to earn reasonable profits. These features include copy trading.
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