According to famous trader Smart Contractor, a large-cap decentralised finance (DeFi) altcoin is on the verge of a big 300% rebound.
With the DeFi space heating and exploding from the start of 2021, he feels that Compound (COMP) is setting the stage for a massive move up in both the USD and BTC denominations.
Compound, like the rest of the DeFi sector, had a significant rally in 2021, jumping from a low of $134 on January 1 to $377 on February 1.
Compound is a DeFi protocol that lets traders borrow money and earn interest on crypto. DeFi is a term used to describe a vast network of non-custodial and financial services that are operated by smart contracts (self-executing code). These protocols allow users to access bank-like services without the use of a bank or other third-party intermediary. The Ethereum network underpins the majority of the larger ones.
In his opinion, COMP/BTC has made a substantial low. From here, He believes we can see a 165% rise in BTC.
COMP could be worth 3x in USD if BTC continues to rise. The season DeFi is back, and it’s better than ever.
Billionaire investor Mark Cuban is also keeping up with the emerging technology. He feels that DeFi lending products could shift the way people bank and borrow money, easing out a process that is traditionally lengthy and expensive.
“For me to borrow money I have to be overcollateralized with my bank. I’ve got to call somebody, I’ve got to do a docu sign or sign something. It’s got to be approved on multiple levels. Even if I’m borrowing $10,000 you don’t want to know how much money I have in my bank account just to borrow that.
So unless I’m putting it against a credit card or just writing a check it’s a hassle. And even for me the fees are ridiculous as a percent, and a replication and this and that. So you know, owning a crypto asset whether it’s Bitcoin, Ethereum, some others, a stablecoin – I can do my own banking and it’s very friction free and it’s straightforward and it’s fast… And just that lack of friction is to me the game changer.”
At the time of writing COMP was trading at $516.08. It’s price went up by 4.5% in the last 24 hours. It has a circulating supply of 4.9 Million COMP coins and a max supply of 10 Million. Coinbase Pro is the current most active market trading it. ( Coingecko )
Smart contractor also hints that ETH may erupt and break out in it’s BTC pair. He observes that ETH is shaping a weekly at 0.618 and also bouncing the major 50-week moving average. According to him ETH is a better investment for 2021 as the first quarter of 2021 was a successful one for ETH.