Compound is a leading DeFi lending platform. The growth in Compound and other DeFi lending platforms like Aavegotchi has raised attention from regulators. The US Securities and Exchange Commission (SEC) is now shifting its focus towards this rapidly growing sector. Nevertheless, decentralized finance remains one of the leading innovations in the crypto sector.
Compound is trading at $449.45 at the time of writing after a 13.8% gain.
COMP Price Analysis
Compound is currently on strong bullish momentum, despite the high volatility. If there is a continuation in this uptrend, we could see the token retesting the $480 level. A continuation of market support could lead to this uptrend, and if it holds, we could see the coin reaching the $500 level.
On the downside, we could also see COMP retreat to lower levels if BTC and the entire market fail to hold the current bulls. If this is the case, we will see COMP heading towards $400. Going below $380 will take COMP back to the trading levels recorded in late July.
Market signals show that COMP is a good buy; hence, traders could rally support for the DeFi token. This indicator is a positive sign that a COMP upswing is more likely compared to a downtrend.
ConsenSys, a crypto data analytics site, recently published a second-quarter report that indicated that the Q2 2021 financial period was the best so far for DeFi. According to the report, the trading volumes in decentralized exchanges (DEXs) reached $343 billion, higher than Coinbase’s trading volumes in Q1. This growth shows that DeFi is fast gaining adoption in the financial sector.
Gary Gensler, the SEC chief, is behind this week’s gains in the crypto market because of his latest crypto speech. In his speech, Gensler spoke about cryptocurrencies and mentioned the rapidly growing DeFi sector. Coindesk recently interviewed Paul Brody, a Global Blockchain Leader Ernst & Young, who believed that the speech was a bullish signal for DeFi.
Where to Buy Compound
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