In less than two months, Compound (COMP) price has advanced from $80 above $200 and for now, there is no fear of the bear market. Rising above $220 supports the continuation of the bullish trend, but if the price falls below $180, it would be a strong “sell” signal.
Fundamental analysis: Investors in COMP should have in mind that this is a still very risky cryptocurrency
Compound is a decentralized, blockchain-based protocol that allows its users to lend and borrow cryptocurrencies. The native utility token of this protocol is COMP, which is distributed to all lenders and borrowers on this protocol every day.
Every COMP token represents one vote, and anyone who owns at least 1% of the total supply can vote on proposals to change something on this blockchain-based protocol. Compound is an entirely self-governed blockchain focusing on the financial service that brings the benefits of blockchain in a rapidly expanding DeFi ecosystem.
There are lots of cryptocurrencies that can be lend or borrow on this protocol; some of them include: Basic Attention Token (BAT), Augur (REP), Dai (DAI), Ether (ETH), USD Coin (USDC), Ox (ZRX), Tether (USDT), Wrapped BTC (WBTC).
When you deposit your crypto to the Compound wallet, you immediately start to earn interest denominated in the same token that you lent. On the other side, you pay interest for borrowing, but regardless of whether you are lending or borrowing, you first have to lock in crypto with Compound.
All major cryptocurrencies are advancing this trading week, and this situation also supports the price of COMP. Some analysts say that the cryptocurrency market has entered a bubble, while some analysts think that Bitcoin could dethrone gold as a store of value to hedge against