Wondering where the prices of Compound (COMP) will go in the near future? The aim of this guide is to give you brief details on the outlook of Compound Price Prediction of 2021 and beyond. This allows you to clearly grasp if COMP is a valuable investment. It is the first platform to introduce Yield farming in the crypto community. Before jumping into the prediction content, let’s start with some basic information and a history check of Compound.
What is Compound (COMP)?
COMP is the governing token for the DeFi Protocol on the Compound. DeFi networks are targeted at converting centralized financial systems into open systems. This means that everyday consumers have a stake in income which only major financial institutions once had. The compound is a money market algorithm that exists on a Blockchain-based on Ethereum. Notably, launching the new DeFi craze is credited to this network. The compound was the first network in the middle of summer 2020 to add yield farming to the market. In certain aspects yield farming is like staking crypto.
The users actually lock their crypto coins and token into the large mining pools of compound. You earn rewards based on the locked sum of crypto and the time you take part in the pool. In comparison with other staking pools, yield farming pools offer shorter periods to users to lock their cryptocurrencies. But mostly don’t offer limited time period.
History of Compound
In May 2018, Compound launched in the market. For now, the company is based in San Francisco. Robert Leshner, president, and CEO of Compound, was the co-chair of the San Francisco Revenue Bond Oversight Committee. He is knowledgeable about the complexities of CeFi’s transition into DeFi. Compound emerged in the market in such a spectacular way with an $8.2 million equity investment in May 2018 during the seed round.
Compound Price Analysis and History
According to Coinmarketcap, on 17 June 2020, Compound debuted in the crypto-world with $80.13. The price went up dramatically to $301 when it gained market attention. The new All-Time high record also increased to $381.89. The price began to decline consistently, dropping to $166.11 in early July and $122.97 as a result of massive supply pressure at the beginning of August. By the middle of August and by the beginning of September Compound achieved its resistance level of $230.21 and $257.72 respectively.
The price, however, started to decrease again. The compound did not perform well in the third quarter when the Bearish attack continued and in November declined to 83.65 dollars. Furthermore, the price began to rise by reaching $132.03 as Bitcoin expands its prices rally by the end of November. By December, COMP won $150.53 to end the trade in 2020. January has been a very good month and starts this year. Currently trading with a price of $493.86, Compound looks like a promising investment opportunity for investors.
Compound Price Prediction 2021-2025 by Walletinvestor
The compound traded in early January at $152.55. The technical advancements for the COMP remain strong till then. There might be some development that needs to be done inbound. This could help the platform to reach the audience on a much bigger level. Wallet investor although is very supportive and optimistic for the next 5 years. If we look above the graph, the 2021 year is going to be enormously successful for Compound. It is being predicted that by December 2021, Compound will reach a value of a maximum of $671.593.
The average trading price will be $574.680. for 2022, it is expected to be priced at $820.107 with an average price of $728.499, for 2023, it is expected to be priced at $987.058 with an average price of $882.508 and for 2024, it is expected to be priced at $1123.360 with an average price of $1025.720. 2025 is expected to ben end with an average price of $1176.260.
COMP Price Prediction 2021-2025 by DigitalCoinPrice
The COMP coin prices will soon grow, according to the Digital Coin Price source. The compound cryptocurrency rate will hit and increase by $380 every year. By 2022, the prices could reach $853.47 and by 2024, it could be $1,246.26. The asset price is expected to exponentially rise. The spot rate would then be $1,486.44 by 2025. Bullish trend, huh? Such a prediction is only possible because the project and crypto industry is continuously developing.
Rest assured the below graph and expected reach value of Compound is mentioned below. These are official predictions by Digital Coin Price. The authenticity of this prediction is for real and crystal clear.
Compound (COMP) Price Prediction by different market resources
According to the reviews on the trust pilot, the predictions made by TradingBeasts are far more accurate and approachable. TradingBeasts suggested that Compound could sell by the end of 2021 at a value of $742.357 and by the end of 2024, it could reach the $1,000 mark.
The Compound could sell at $651.84 in December 2021, according to the CoinArbitrage. Compound will hit the lowest price for the next three years at $118.97 and then will hit an all-time high of $1377.74.
Our Compound (COMP) Price Prediction
As long as there is a disparity between cost and COMP price, investors continue to undermine the tokens. Nevertheless, increased supply and the chances of liquidating the COMP will eventually place lower market pressure before actual demand for Compound lending is reached.
COMP was unveiled with a trade price of 152.55 in 2021. The marketers of Compound are very confident and the prices will possibly increase. Some collaborations can lead to new levels for improving its database. The price will start to grow steadily. It could fall if the protocol is not established. COMP can be traded for a potential sum of $1200 to $1800 by the end of 2025.
How to Use Compound (COMP)
It’s easy to use the compound. To join this DeFi network you don’t have to fill out a lot of personal details. A compatible 3.0 online wallet to support ERC-20 coins needs to be downloaded. In general, MetaMask is known as the safest and considerable option to do it.
You can mine or generate cTokens while your wallet is linked to the network. Go to the website menu account summary section. Then pick any asset and unlock the market. Upon activation of the asset, users can then send or loan according to their needs.
How to Buy Compound (COMP)
It’s quick to buy COMP. This token’s popularity and durability make it available in most large exchanges. A number of COMP trading pairs are given in Binance. You must register for an account in order to get started. The registration is easy and fast. However, before you can engage in exchange, you will need to confirm your identity.
You need to fund your fiat account after you’ve registered. This can be done by bank transfer or by debit card. Now that you have funds in your account, you can easily convert your fiat currencies into any crypto but will recommend you to use fiat to BTC trading pair because you cannot directly buy compound. The whole process takes roughly 20 minutes from start to finish.
Compound (COMP) Price Prediction FAQs
Is Compound a good Investment?
Compared to other really strong cryptocurrencies, Compound’s value is low. But it a stable coin. Before investing check the listing of coins for 2 to 3 months for the safer side.
Who controls compound protocol?
A decentralized group of COMP token-holders and its delegates controls the compound to propose and vote on protocol updates.
What are cTokens?
When you have assets for the Compound protocol, the asset is shown as a cTokens, which developers can then transfer, trade, or program to construct new interfaces similar to other Ethereum tokens.
In order to build an upgradable financial infrastructure, the platform incorporates a risk-free trading protocol and it has a stand-alone interest rate protocol designed to allow emerging developers and financial devices to develop. Compound also supplies computers, Dapps, and consumers with free protocol smart contracts, business support stablecoins, and crypto-assets including Tether, USD token, Dai, Augur, 0.x, BAT, and Sai. More digital assets will be added in the meantime.
If compound comes strong by the volume it may enter into the list of largest crypto coins very soon. Let us know if you are still a bit confused. Leave a comment and we will try to respond as soon as possible.