compound

There’s news that WinterMute invested in Euler Finance, and $EUL can be said to have revived after the previous downturn. I’ve compiled an article about the current top lending protocols.

1. Overview of protocols in the industry

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: The largest DeFi lending protocol, with a Monolithic model, supporting multiple assets, providing features like Flash Loans, Isolated Mode, and Efficiency Mode.

=> TVL: Over 17.8 billion USD

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: An established lending protocol, transitioning to an Isolated model with Compound v3. Focused on security and decentralized governance, with tools like Debt Simulator and Collateral Swap.

#compound
The Compound (COMP) coin, a key player in the decentralized finance (DeFi) ecosystem, has been in an accumulation zone for the past three years. This prolonged period of consolidation has caught the attention of market observers, with indications that whales and large institutions are quietly building positions. The hypothesis is that once a monthly candle closes above the $90 zone, it could act as a trigger, propelling the price toward $250. In this article, we’ll dive into the technical analysis, fundamental sentiment, and potential price dynamics of Compound to assess whether this breakout scenario holds water.

#### The Accumulation Zone: A Three-Year Consolidation
For the past three years, Compound’s price action has been characterized by a sideways range, often referred to as an accumulation zone in technical analysis. An accumulation zone typically occurs when an asset trades within a defined range for an extended period, with buyers gradually stepping in to absorb supply at lower levels. This behavior is often a precursor to a significant breakout, as it suggests that larger players—whales and institutions—are accumulating positions without pushing the price up prematurely.

In Compound’s case, this range has largely hovered between $30 and $90, with occasional spikes and dips. The fact that whales and institutions are reportedly buying at these levels adds credence to the idea that they see long-term value in COMP. On-chain data, such as wallet activity and exchange inflows/outflows, could further confirm this trend if large addresses show consistent buying patterns. For now, the prolonged consolidation suggests a buildup of pressure that could resolve in a decisive move once key resistance is breached.

#### Technical Analysis: The $90 Trigger and Path to $250
From a technical perspective, the $90 level stands out as a critical resistance zone on the monthly chart. A close above this level on a monthly candle would signal a breakout from the accumulation range, potentially igniting bullish momentum. Let’s break down the key technical factors:

1. **Support and Resistance Levels**:
- The $30–$50 range has acted as a strong support base, repeatedly tested over the past three years.
- The $90 zone has served as a ceiling, with multiple failed attempts to sustain a break above it. A monthly close above $90 would flip this resistance into support, a classic bullish signal.

2. **Moving Averages**:
- On the monthly chart, the 50-period moving average (currently around $80–$85) aligns closely with the $90 resistance. A breakout above this level could see the price target the 200-period moving average, which sits near $200–$250 depending on the timeframe.
- A golden cross (50 MA crossing above the 200 MA) could occur post-breakout, reinforcing the bullish case.

3. **Relative Strength Index (RSI)**:
- The monthly RSI is currently in a neutral zone (around 40–50), indicating neither overbought nor oversold conditions. This leaves room for upward momentum without immediate risk of a reversal due to overextension.

4. **Volume Analysis**:
- Volume during the accumulation phase has been relatively low, typical of consolidation periods. A breakout above $90 accompanied by a spike in volume would confirm strong buyer conviction, increasing the likelihood of a sustained move toward $250.

5. **Price Target Projection**:
- Measuring the height of the accumulation range ($90 – $30 = $60) and projecting it upward from the breakout point ($90 + $60 = $150) gives a conservative target. However, in a strong bullish scenario fueled by market sentiment and DeFi tailwinds, an extension to $250 is plausible, aligning with previous highs from 2021.

The $90 trigger, therefore, is a pivotal level. A monthly close above it could unleash a wave of buying pressure, driving COMP toward $150 as an initial target, with $250 as a longer-term possibility if momentum persists.

#### Fundamental Sentiment: DeFi’s Resilience and Compound’s Role
Fundamentally, Compound’s sentiment is tied to its position within the DeFi landscape. As a pioneering lending protocol on Ethereum, Compound allows users to supply assets and earn interest or borrow against collateral, with COMP tokens serving as governance rights. Here’s a look at the key fundamental drivers:

1. **DeFi Adoption**:
- The broader DeFi sector has shown resilience despite crypto market downturns. Total value locked (TVL) in DeFi protocols remains a critical metric, and Compound’s TVL, while not at its 2021 peak, has stabilized. Growth in DeFi adoption could lift COMP’s utility and demand.

2. **Institutional Interest**:
- The notion that institutions are accumulating COMP aligns with a growing trend of traditional finance players exploring DeFi. Compound’s recent expansion to offer borrowing options to institutions (announced in 2022) could bolster its appeal, driving fundamental value.

3. **Competitive Landscape**:
- Compound faces competition from protocols like Aave and Maker, which offer similar lending and borrowing services. However, its established brand and governance model give it an edge. Any protocol upgrades or partnerships could act as catalysts for positive sentiment.

4. **Market Conditions**:
- The crypto market’s overall direction will influence COMP’s trajectory. A bullish macro environment (e.g., Bitcoin rallying or Ethereum upgrades) could amplify Compound’s gains, while a bearish turn might delay the breakout.

Sentiment-wise, the fundamental outlook is cautiously optimistic. Whales and institutions accumulating at current levels suggest confidence in Compound’s long-term potential, though short-term sentiment may hinge on broader market trends.

#### Risks and Considerations
While the $90-to-$250 scenario is compelling, several risks could derail it:
- **Failure to Break $90**: If the monthly candle fails to close above $90, COMP could retreat to the lower end of the accumulation zone ($30–$50), prolonging consolidation.
- **Macro Headwinds**: A crypto market downturn or regulatory crackdown on DeFi could suppress price action.
- **Competition**: A surge in rival protocols’ adoption might divert capital away from Compound.

#### Conclusion: A Breakout in the Making?
Compound’s three-year accumulation zone, coupled with whale and institutional buying, sets the stage for a potential breakout. Technically, a monthly close above $90 could trigger a rally toward $250, supported by key indicators like moving averages and volume. Fundamentally, Compound’s role in DeFi and growing institutional interest provide a solid backdrop, though risks remain.

For traders and investors, the $90 level is the line in the sand. A confirmed breakout could signal the start of a significant uptrend, while a rejection might call for patience. As of April 1, 2025, with COMP’s price likely still in this range, the next few monthly candles will be critical in determining whether the $250 target becomes reality. Keep an eye on volume, RSI, and DeFi market sentiment—they’ll tell the story as it unfolds.

The Ethereum Foundation has announced a new leadership structure consisting of two co-directors: Hsiao-Wei Wang, Chief Scientist of the Ethereum Foundation, and Tomasz Stanczak, CEO of Nethermind, one of Ethereum's largest fulfillment clients.

According to a March 1 announcement, Wang has seven years of experience as a researcher at the #Ethereum Foundation, and Stanczak has proven leadership in scaling the organization from an early-stage project to a global company Wang and Stanczak were appointed March 17. They will become co-directors of the Ethereum Foundation. The Ethereum Foundation added: Over the next few years, the Ethereum ecosystem will face a challenging transition from an early-stage project serving a small number of enthusiasts to a robust, permission-free, censorship-resistant base level of a global financial and software stack. It should. '
prices struggling to regain previous highs, fears that tier-2 scaling solutions will trigger ethereum churn, and competition from new high-performance chains are all eroding investor confidence.
January 23, Vitalik Buterin outlined a strategy to strengthen Ethereum in a blog post, including increasing transaction throughput by increasing the number of blocks and encouraging second-tier solutions to pay a percentage of their fees to the base tier. February 13, the Ethereum Foundation invested 45,000 ETH, the equivalent of about $120 million at the time, in decentralized financial protocols #Aave , #Compound and Spark to generate revenue.
Social media presence and marketing has become a top priority for the foundation in recent weeks with the emergence of Etherealize, the organization responsible for marketing Ethereum to institutional investors. It has become a top priority for the fund.
Danny Ryan, a longtime Etherealize developer, joined Etherealize on March 1 as a co-founder along with Vivek Raman.
Read us at: Compass Investments

History has proven that cryptocurrencies outperform other currencies during currency expansions.

Gold is up more than 30% this year, while the NASDAQ is up just 24.43%.
#Bitcoin (BTC) is currently leading the way, up more than 52% this year.
Data from #cryptocurrency provider Ecoinometrics underscores bitcoin's ability to thrive in times of currency growth.
While major economies face potential financial difficulties, bitcoin's response to the fall of fiat currencies is once again gaining attention. A key example of this was in 2020, when the U. S. and other governments around the world injected significant liquidity into their economies in response to the COVID-19 pandemic.
In this period, bitcoin significantly outperformed traditional assets, demonstrating its potential as a hedge against inflation and currency devaluation.
In the wake of the pandemic, central banks around the world took steps to ease monetary policy on a large scale. In the U. S. , for example, the M2 money supply increased by $6 trillion to overcome the economic impact of COVID-19. According to an analysis by Econometrics, bitcoin has benefited significantly from the influx of liquidity, unlike traditional assets. During this period, the cryptocurrency grew at an impressive #compound annual growth rate (CAGR) of around 150%.
This growth rate is well ahead of the NASDAQ, which grew at an annual rate of less than 50%, and gold, which lagged far behind.
Bitcoin's annual growth rate is about four times that of NASDAQ and 20 times that of gold.
The current economic situation is different from the aggressive financial expansion of 2020. Governments are not printing money at the same pace as they did during the pandemic.
As a result, the price of bitcoin has stabilized in recent months.

Despite the current calm, global fiscal challenges, such as rising budget deficits and debt levels, suggest that a new wave of liquidity injections may be on the horizon.

Read us at: Compass Investments
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