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Compound: A Quick Introduction
In 2017, there was a gap in the market for cryptocurrency loans, which prompted entrepreneurs Geoffrey Hayes and Robert Leshner to collaborate and create Compound. The platform, launched in 2018, enables cryptocurrency borrowing and lending. At the time of the launch, Leshner stated that there were limited options available for individuals to safeguard their assets from hacks and losses, except for moving them from exchanges to personal control and waiting until they were ready to sell.
Before moving further, let’s take a look at COMP’s current market details to clarify our Compound price prediction better.
COMP: Features And Roadmap
Compound’s protocol is intended for use by decentralized application (dApp) developers who seek to provide their users with the option to earn interest on their cryptocurrency holdings. Essentially, Compound operates as a “money market” for digital assets.
The primary token associated with the Compound protocol is COMP, which is utilized to cover fees associated with lending and borrowing activities conducted on the platform. Additionally, COMP tokens are employed to govern the decision-making process regarding the direction of the Compound protocol.
Compound possesses several strengths that could assist it in retaining a prominent position within the cryptocurrency sector.
The conversion of a user’s locked assets into ERC-20 tokens enables them to be freely traded, moved, and utilized in other decentralized applications (dapps). The utilization of cTokens represents a critical aspect of the DeFi movement – the capacity to merge various protocols as separate building blocks, often referred to as “money legos.”
Compound Price Prediction: Price History
To make informed predictions about COMP’s future price trends, investors should first understand its past performance. However, it is important to recognize that relying solely on price history is insufficient for predicting Compound’s future price movements.
The initial launch price of COMP was $78.58, and shortly after its launch on 22 June 2020, the DeFi token gained popularity, reaching $336.22. However, the price slowly declined, hovering between $100 and $150 for most of the year, with a brief surge in August and September when it peaked at $256.35. In November 2020, it hit a low of $87.36, but a slight recovery saw it pass $100 later that month.
In 2021, the price of COMP experienced ups and downs until late April, when it stood at $475.97. It then rallied, hitting an all-time high of $911.2 on 12 May 2021, a surge of over 79.5% in just 22 days.
In late May 2021, COMP experienced a sharp decline due to the crypto crash, dropping to $344.54 and losing almost 60% of its value in just 12 days. Although the coin saw a partial recovery on September 6th, with its price reaching $508.91, this rebound was short-lived.
Throughout the fourth quarter of 2021, macro headwinds threatened the already volatile crypto market with a potential “crypto winter.” In October, a hacker exposed a critical vulnerability in the protocol due to a fault in the code, causing COMP’s price to plummet. The decline persisted, and by March 7th, 2022, the token hit a new low of $98.38, the lowest it had been in 16 months.
As a result of a market-wide crypto crash in May and June 2022, the value of COMP plummeted even further. The crypto market dipped below $1 trillion, with even Bitcoin falling below the $20,000 mark for the first time since December 2020. Unfortunately, the Compound was not immune to the market downturn and experienced a sharp drop in value.
The token hit an all-time low of $26.52 on June 18, which was further worsened by the long-running bear market and market-wide crash. However, there was some relief in the following weeks, and the token managed to close the month of June at $46.98 and July at $57.26.
Compound Price Prediction: Technical Analysis
CoinMarketCap reports that the current price of the COMP token is trading at $42.47, showing an uptrend of nearly 1.5% from yesterday’s price. Our technical analysis of COMP suggests that this cryptocurrency could soon display bullish signals, surging to new highs as it may experience a significant recovery rally after being influenced by the overall bullish trend led by Bitcoin following the release of CPI data. Looking at the daily price chart, Compound is struggling to trade above its EMA-20 trend line at $44.4, facing sharp rejections near its immediate resistance level of $44. However, after forming a low near $35, the COMP token has taken support and is making an effort to surge above the 23.6% Fib level. The EMA-50 trend line has dropped significantly from its previous resistance level of $51, hinting that COMP tokens are trading within a consolidation level controlled by bears. COMP is currently in an extreme fear zone due to the SEC’s crackdown on crypto, creating a FUD situation for investors. The Balance of Power (BoP) indicator is trading in a highly bullish region of 1.00, suggesting that the bullish momentum may extend if the COMP token breaks above its bearish triangle pattern.
The popular RSI-14 indicator is trading on the verge of its buying region at the level of 44, which shows that the bottom has already been formed, and the COMP token may spark fresh surges in the next few days. Moreover, the MACD line has stabilized near the signal line as it forms a bullish divergence pattern with the buying pressure. However, the SMA-14 does not promise a bullish trend as it becomes range-bound above the midline, which may trigger a short-term bearish retracement for COMP. If the Compound coin breaks above its resistance of $46, it may pave its upward road to its EMA-200 resistance at $52, and if it manages to break its strong resistance of Bollinger Band’s upper limit of $59, it may attempt to go higher. Conversely, if COMP drops below the crucial support level of $35, a further bearish rally is expected, which may cause it to accelerate a sharp collapse and trade near its Bollinger band’s lower limit of $30. If Compound’s price fails to hold above $24, it may gear up for a more bearish bloodbath and trade near $21.
Compound Price Prediction By BlockchainReporter
Compound Price Prediction 2023
BlockchainReporter’s current Compound price prediction for the upcoming years is optimistic. In 2023, we anticipate a bullish trend for COMP with a maximum price of $68.41, a minimum value of $58.61, and an average market price of $60.37. The frequent updates and new developments of Compound could influence the price levels of the cryptocurrency.
Compound Price Prediction 2024
Compound Price Prediction 2025
By the end of 2025, the maximum Compound cost price is anticipated to be $141.50, with a minimum price of $119.52 and an average price of $123.78. With a higher adoption of blockchain-based applications in the future, COMP could see an enormous increase in price.
Compound Price Prediction 2026
For 2026, COMP is expected to have a sustained bull market, leading to a maximum price of $210.97 and a minimum value of $171.90, with an average market price of $178.09.
Compound Price Prediction 2027
According to the Compound token price forecast for 2027, investors could record huge profits, as the cryptocurrency could reach a peak price of $308.44, with an average price of $269.00 and a minimum possible level of $260.09. Compound’s reduced fees, transparency, security, and faster transactions could contribute to a surge in price.
Compound Price Prediction 2028
In 2028, COMP could trade between a minimum price value of $369.90 and a maximum price value of $449.53, with an expected average value of $383.35. Being one of the best-performing digital coins in the crypto market, there would be a huge demand for the token in the future, leading to a massive increase in price.
Compound Price Prediction 2029
For 2029, COMP is expected to trade at a maximum value of $646.60, maintaining an average trading value of $546.30 and a minimum value of $527.14 throughout the year.
Compound Price Prediction 2030
Our Compound price forecast for 2030 expects COMP to attain a maximum level of $932.89, with a minimum level of $797.92 and an average trading price of $825.23.
Compound Price Prediction 2031
The Compound price forecast for 2031 indicates an overall bullish trend leading to a peak price of $1,445.44, with an average price of $1,222.60 and a minimum price of $1,181.34. The digital coin’s potential could attract many users, influencing these high prices.
Compound Price Prediction 2032
Finally, for 2032, Compound is expected to have a fully bullish year with loads of upside fluctuations, leading to a maximum price of $1,998.18, an average trading price of $1,725.24, and a minimum price of $1,664.11.
Compound Price Prediction By Industry Experts
According to Digital Coin Price’s Compound price forecast, it is anticipated that the COMP price will surpass the $93.62 mark in 2024, with Compound projected to attain a minimum fee of $91.33 by year-end. Furthermore, the price of COMP has the potential to reach a maximum level of $100.51.
In 2032, the anticipated scenario is for the price of COMP to exceed the $807.97 threshold, with Compound forecasted to attain a minimum fee of $796.29 by the end of the year. Additionally, there is potential for the COMP price to reach a maximum level of $825.74.
CryptoPredictions.com’s Compound price prediction expects that Compound will commence in April 2023 at a value of $37.377 and conclude the month at $49.575. Within the same period, the highest projected price for COMP is $52.612, while the lowest is $35.776.
Is Compound A Good Investment? When Should You Buy?
Compound (COMP) is a decentralized finance (DeFi) protocol that allows users to lend and borrow various cryptocurrencies while earning interest on their holdings. The platform has gained significant popularity in recent years due to its unique approach to lending and borrowing, making it an attractive investment opportunity for cryptocurrency enthusiasts.
The platform is designed to be highly efficient, with an algorithm that adjusts interest rates based on supply and demand, ensuring that users always get the best possible rates. This, combined with its intuitive interface, has made Compound an attractive investment opportunity for both novice and experienced investors. Our Compound price analysis suggests investors invest in this token at $35 for a stable profit in the long term.
Judging from the current market trends, sentiment, and multiple price predictions for Compound, it seems that the cryptocurrency has a promising future. The coin has demonstrated a consistent upward trajectory and is expected to continue its ascent in value in the upcoming years. The team responsible for the Compound network has been diligent in enhancing the platform and broadening its applications, potentially propelling the coin’s worth even further.
What is Compound (COMP)?
Compound is a decentralized finance (DeFi) platform that allows users to lend and borrow various cryptocurrencies while earning interest on their holdings. It uses a unique algorithm to adjust interest rates based on supply and demand, ensuring users get the best possible rates. Compound also employs cTokens to tokenize assets locked within its system.
Who created Compound?
Compound was founded by entrepreneurs Geoffrey Hayes and Robert Leshner in 2017. It was developed as a solution for cryptocurrency lending and borrowing, which was an underserved market at the time.
What are cTokens?
cTokens are ERC20 tokens that represent a user’s deposited funds in the Compound platform. When a user deposits ETH or another ERC-20 token like USDC into the protocol, they receive an equivalent amount of cTokens. These tokens automatically accrue interest, and users can exchange them for the standard version of the cryptocurrency, along with any earned interest.
What is the role of COMP token in the Compound platform?
COMP is the primary token associated with the Compound protocol. It is utilized to cover fees related to lending and borrowing activities on the platform and governs the decision-making process regarding the direction of the Compound protocol.
When should you buy Compound?
Our Compound price analysis suggests investors invest in this token at $35 for a stable profit in the long term. However, investment decisions should be based on individual research and risk tolerance.