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- 1 Compound has a TVL of $1.19 Billion which has been consolidating for a long time
- 2 COMP price is currently observing a weak consolidated trend in price. It has seen a gain of 1% in the intraday session
Compound is a defi protocol which lets users earn the interest by depositing their crypto currency to the platform. When a user deposits a token in the pool they get c-token in return which represents their stake on the platform. These C tokens can also be used to redeem the underlying token. It was founded in 2017 by Robert and Geoffery.
Compound has a TVL of $1.19 Billion which is consolidating for a long time. The annualized revenue of the protocol is around $3.62 Million. Meanwhile, the fees collected for the protocol is around $29.5 Million. The deposited asset and the loaned assets has also not seen much changes in the past few months. The active users of the protocol has also been in a decline from the last few months.
Compound has a market cap of $307 Million and is ranked 93rd in the cryptoverse. The volume of the COMP has observed a surge of 6% in the intraday session. Volume to market cap ratio of the asset price suggests a consolidated trend in price.
Is COMP Ready To Hit $100 Soon?
Compound token price is currently observing a weak downside trend in weekly technical chart. On the daily chart, COMP price is trading near the value of $40 with a small drop in the intraday session. There is a strong consolidation on the daily chart which can observe a breakout in the near future. The upside trend of the COMP can see a halt near the value of $50. Meanwhile, the downside trend of the asset price can observe a bounceback from $30. COMP token price is trading below the 50 and 100 Daily Moving Averages. If the asset price jumps above the DMA then a strong momentum to a new high can be seen in the future.
The RSI of COMP is near 33 suggesting its presence in the oversold zone. There is no slope in the indicator hinting towards a consolidated trend in price.
Summary
Compound has been observing a consolidation in the TVL and is near $1.19 Billion. There is no surge in the active users and developers of the protocol. COMP price is currently in a consolidated trend and can see a new high in the future.
Technical Levels
Major Support:$30
Major Resistance:$50
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 or stock comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
