Compound price has made a strong rebound in the past few days in tandem with other cryptocurrencies. COMP jumped to a high of $57, which was the highest point since October 22. It has jumped by more than 62% from the lowest point in 2022.
What is Compound?
Compound is one of the biggest players in decentralized finance (DeFi). It is an autonomous platform that makes it possible for people to borrow funds in the form of cryptocurrencies. According to its website, Compound has over $670 million of borrowings that are backed by over $2.2 billion worth of coins. It operates in Ethereum and USDC.
Compound also runs Compound Treasury. A crypto-powered cash management solution that enables people to earn fixed interest with daily liquidity. Also, people can borrow against digital assets. Some of the top companies that uses Compound are Genesis, Gauntlet, Hashkey, and Nansen among others.
Yields and liquidity are backed by Compound Protocol, an audited platform that has over $3 billion in assets. It has handled over $285 billion in total transaction volume since launch.
COMP price has been in a strong bearish trend in the past few months. It plunged by more than 70% in 2022 in sync with other cryptocurrencies like BTC and ETH. It also crashed as the total value in its ecosystem plunged.
Compound has over $1.86 billion in total value locked (TVL). At its peak, Compound had over $10 billion in assets. Including the borrowed funds, Compound has a TVL of over $2.54 billion. Sadly, the amount of money in the ecosystem has been in a strong bearish trend and is now at the lowest level since 2021.
COMP price prediction
The daily chart shows that the COMP price has been in a strong bearish trend in the past few months. Like other coins, Compound rose from a low of $29.83 to $56.78. Compound remained above all moving averages while the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, the coin will likely continue rising as buyers target the key resistance level at $65.93, the highest level in September last year. A drop below the support at $40 will invalidate the bullish view.
