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Is Compound (COMP) buy opportunity after the price collapsed?

COMP/USD is the native token of Compound that allows you to debate, propose, and vote on changes to the Compound protocol. COMP has weakened from $913…

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This article was originally published by Invezz - Market Analysis

COMP/USD is the native token of Compound that allows you to debate, propose, and vote on changes to the Compound protocol.

COMP has weakened from $913 to $197 since May 12, and the current price stands at $235.

Lend and borrow cryptocurrencies

Compound is a decentralized, blockchain-based protocol that allows its users to lend and borrow cryptocurrencies. Compound is built for developers, and it is managed by a decentralized community.

This blockchain-based protocol raised $25 million in 2019 to expand crypto lending, and according to its founder Robert Leshner, the legacy financial system was slow, inefficient, and constrained by intermediaries.

This project aims to build a financial system in which everyone can achieve prosperity, and it is important to say that Compound dedicates lots of effort to provide the simplest experience for its clients.

Many cryptocurrencies can be supplied or borrowed on this protocol, and when you supply an asset to Compound, you immediately begin receiving interest on that deposit.

To interact with this protocol, you should use the COMP tokens that allow you to debate, propose, and vote on changes to the Compound protocol.

COMP token is an ERC-20 token and it is distributed to all lenders and borrowers on this protocol. The interest on the crypto you deposit into Compound comes in the form of a native COMP token, while it is important to say that a borrowing limit is determined based on the value of the collateral you’ve supplied.

The COMP token has achieved an impressive gain in the first half of 2021, and it has reached a record high above $900 on May 12.

COMP is currently down more than 70% from its peak, but according to Mike McGlone, Senior Commodity Strategist at Bloomberg, 2022 will be a successful year for the cryptocurrency market.

Many institutions started to look at cryptocurrencies for being an excellent store of value; still, Vijay Ayyar, vice president of corporate development and global expansion at crypto exchange Luno, said that regulation will be a key issue in 2022 for the cryptocurrency market. Vijay Ayyar added:

2022 will be a big year on the regulatory front; no doubt, the interest from various governments, and especially the U.S., to bring regulation into the crypto space has not been higher.

Bears in control of COMP

COMP has collapsed from its record high above $900, registered on May 12, and the current price stands at $235.

Data source: tradingview.com

COMP remains in a bear market; still, if the price jumps above $300, it would be a “buy” signal, and the next target could be at $350.

Summary

Compound is a decentralized, blockchain-based protocol that aims to build a transparent financial system and allows its users to lend and borrow cryptocurrencies. COMP is the native token of Compound protocol, and according to technical analysis, it remains in a bear market.

The post Is Compound (COMP) buy opportunity after the price collapsed? appeared first on Invezz.


Author: Stanko Iliev

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