Compound, an algorithmic, autonomous interest rate protocol built for empowering the governance of its community, will lead to a mass upgrade of the protocol by the ecosystem built. The change in the dynamism of the protocol is done by COMP token holders, and then their delegates debate, propose and vote for these changes.
This will lead to great governance in the future, and with an ATH hit in the ongoing year, COMP has lured a massive investor group as it is one of the most lucrative tokens amongst the top 50 of the global crypto market.
In common parlance, anyone from the community can present a change to the current protocol of Compound. The proposed change will then go for a vote after getting acceptance from 1% of the total supply of COMP token holders signal.
Compound Price Analysis
Compound—the high governance-based token was initially announced in February 2020, and before the end of the year, it is one of the most looked upon DeFi tokens. Compound lending platform started getting COMP tokens and its benefits around mid-June. Over the past 12 weeks, the token has hit an ATH right after getting distributed.
However, if we take into consideration the previous month’s movement of COMP/USD, it is undoubtedly holding a positive sentiment on the first day of the trading month. This shows that Compound drew a bullish crossover at the end of the previous trading month with a parabola rise just when the major altcoins of the market closed the month with a negative sentiment.
The price of COMP token is already breaching the upper 20-day Bollinger Band due to gained traction as it currently trades at $270 and exhibits a gradual rise from $180. The MACD line is seen crossing above the signal line with massive and consistent daily gains. The RSI shows the amplified demand due to a parabola growth curve and lies at 85.04.