Compound Price Analysis: COMP/USD surges after Coinbase opens up trading

• Compound is currently the leading project in the Decentralized Finance (DeFi) space.
• As per CoinMarketCap, Compound has made the highest gains among the top 100 coins over the last 24 hours.
• Coinbase opened up COMP/USD trading this Friday.

Compound has become the hottest commodity in the crypto space because of two significant reasons. Firstly, it has managed to outperform MakerDAO, becoming the undisputed leader in the DeFi (Decentralized Finance) space. Presently, it has $615.70 million locked in, giving it a 37.65% dominance over the DeFi market.

Secondly, Coinbase opened up trading for COMP/USD this Friday, giving users unprecedented access into the DeFi space.

Needless to say, this has been very bullish for COMP/USD. As per CoinMarketCap, Compound has seen the biggest jump in price (15%) over the last 24 hours among the top 100 cryptocurrencies. 

What is a Compound?

Compound is a DeFi protocol that allows users to borrow tokens that are locked up as liquidity by other users. Think of it as a decentralized lending system where users can earn interest by lending their excess tokens to other users. Holding the COMP token allows you to participate in the governance of the protocol. Holders can vote on changes to the underlying protocol.

COMP/USD hourly chart

COMP/USD has gone up from $206.55 to $245.30 since this Thursday, jumping up by almost 18.75%. COMP/USD has healthy support at $236.85, $231.75 (SMA 9), $229.34 and $225.85 (SMA 20). The RSI indicator has flattened itself around 60, which shows that the price has more upside potential.