A large-cap decentralized finance (DeFi) altcoin is on the verge of a major 300% rebound, according to popular trader Smart Contracter.
The pseudonymous trader tells his 118,000 Twitter followers that Compound (COMP) is setting the stage for a massive move up in both the USD and BTC denominations as the DeFi sector heats up.
“COMP/BTC has put in a major bottom in my opinion. I reckon we see a 165% move to the upside against BTC from here.
If BTC keeps moving higher, COMP could be like 3x in USD value. DeFi season is back baby.”
Compound is a DeFi lending protocol sitting in the top 50 projects by market cap that allows users to earn interest on staked crypto assets that are deposited into one of the liquidity pools available on the platform.
Conversely, individuals can also borrow from those pools after putting up collateral into them.
Famed billionaire and Shark Tank host Mark Cuban is a noted proponent of the DeFi lending sector, singing its praises in an interview at the LA Blockchain Summit.
The Dallas Maverick owner believes that DeFi lending products could change the way people bank and borrow money, smoothing 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.”
Compound and many DeFi tools are built on the Ethereum blockchain, an asset on which both Cuban and Smart Contracter are long-term bullish.
Smart Contracter notes that ETH may be breaking out in its Bitcoin pair.
“ETH/BTC monster engulfing forming on weekly at 0.618 and also bouncing the major 50-week moving average.
Still a huge inverse head and shoulders (IHS) at play and a three-year base.
Look me straight in the eyes and tell me ETH is not one of the better investments for 2021.”