Compound’s “Gateway” launch could boost COMP price by roughly 70%

  • Compound announced the launch of a new project, “Gateway,” running on the Ethereum Ropsten Testnet.
  • Token holders will play a critical role in governing the new platform.
  • COMP price might shatter a key supply barrier at $535 as speculation mounts.

Compound could experience a boost in utility and volatility after the release of a new cross-chain interest rate market.

Gateway to initiate cross-chain interest rate market

Compound announced “Gateway,” a substrate blockchain that will be governed by COMP token holders on the Ethereum network but will be upgradeable via Compound Protocol’s Governance mechanism, without the need for downtimes or hard forks.

Running on the Ethereum Ropsten Testnet, Gateway is essentially an open, distributed ledger for the cross-chain interest rate market. Participants will be able to use collaterals from different blockchains directly via Gateway.

The team behind the project added,

“Gateway will evolve into the backbone of a global interest rate market, capable of supporting any asset — including the wave of currencies, assets, and tokens yet to be created.”

Since the COMP token will play a key role in Gateway, it may encourage users to accumulate this cryptocurrency to be able to participate in the governance of the project. Such a potential spike in demand could have serious implications on Compound price.

Compound price on the verge of lift-off

Compound price has been rejected several times by a key level resistance at $535. But after the launch of Gateway, COMP may finally break through this hurdle as investors rush to exchanges to buy this altcoin to participate in the new project. 

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model shows little to no resistance ahead of Compound price that may prevent it from advancing further if buy orders begin to pile up.

Therefore, a daily candlestick close above $535 could lead to a 35% upswing towards $736. If this bullish momentum persists, then Compound price could extend up to $915, which would be a 70% surge from $535.

Compound IOMAP chart

Compound IOMAP chart

However, a rejection at the $535 or loss of bullish momentum may lead to a pullback to $451. The IOMAP cohorts show that 2,400 addresses hold 390,000 COMP tokens around this price level. 

A daily candlestick close below this level could extend Compound price correction to the 50-day moving average at $360.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Cardano partners with Chainlink to drive smart contract development for DeFi applications

Cardano recently announced a strategic partnership with decentralized blockchain oracle network Chainlink. The third-generation blockchain is preparing to build smart contracts for decentralized finance (DeFi) applications.

More Cardano news

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited. Shortly after the announcement was revealed, Bitcoin and altcoins plunged.

More Cryptocurrencies news

Ethereum bears contemplate a drop to $2450

ETH price is building up downside pressure while clinging to the 200-SMA support. RSI remains flat below the midline, keeping the sellers cheerful. A drop towards $2450 remains in the offing if the 200-SMA caves in.

More Ethereum News

Polkadot price at make-or-break point

Polkadot price spots a potential symmetric triangle pattern on the 1D chart. RSI stands neutral at 50.00, suggesting a lack of clear directional bias. 21-DMA offers immediate resistance.

More Polkadot News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast