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- 1 Compound is rolling out services on various scaling platforms and was recently deployed on Arbitrum.
- 2 COMP price recorded a consolidated momentum in price. It has seen a gain of 0.1% intraday.
Compound is a defi lending protocol that allows users to earn from their deposits. Compound treasury allows users to earn 4% APR on the USD balances. When one deposits tokens on the protocol they receive c tokens in return and these can be redeemed for the underlying cryptocurrency. Meanwhile, borrowers can take a secured loan by depositing collateral with a loan-to-value ratio ranging from 50% to 75%. The interest rate of borrowers and suppliers varies accordingly.
The current outstanding deposits of COMP is around $1.56 Billion which has observed a decrease in the past few months. The current outstanding loans of Compound protocol is near $596 Million which is currently stagnant. Compound has a total TVL of $1.25 Billion which has remained stagnant from the start of this year. The protocol has seen a surge in Revenue from Feb to May and has a median APY of 0.16%.
The annualized fees of COMP is nearly $20 Million which can grow more in the future.
Compound has a market cap of $356,553,345 and is ranked 115th in the CMC. The volume of the asset price has seen a slight decline in the intraday session. The V/M ratio of the digital asset suggests a consolidated trend in price.
Is COMP Bulls Ready For a Rally?
The weekly technical chart of the Comppund hints towards a downside momentum in price. On the daily chart, COMP price is in a consolidated trend and is ready for a breakout. Compound price is currently near the value of $35.65 with a small drop in the intraday session. The upside trend of COMP can observe a halt near the value of $40.Meanwhile, the support of the asset price can be seen near $30. Compound price is trading below the 50 and 100 Moving Averages. If the COMP price jumps above the DMA then a strong upside trend can be seen in the future.
The RSI of COMP price is near 46 suggesting its presence in the neutral zone. There is no slope in it hinting towards a consolidated trend in price.
Summary
Compound has recently launched on the Arbitrum network and is moving its services on other scaling platforms. COMP price is currently observing a consolidated trend in price but can see a breakout in the future.
Technical Levels
Major Support:$30
Major Resistance:$40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
