Compound Price Prediction 2025: COMP Momentum Faces Potential Stagnation

Key Takeaways

• Compound pioneered crypto lending, and COMP is its native token.
• COMP rose above $100 for the first time in two-and-a-half years in late 2024.
• One Compound price prediction said the token could reach $129.45 by 2025.
• Interested in buying or selling COMPOUND COMP coin? Read our review of the best exchanges to buy and sell COMPOUND COMP.

Compound was one of the first crypto lending platforms and arguably the most important. While it took some big hits during the disastrous year of 2022, it remained a somewhat significant player in the world of crypto. 

Investors in the system looked like they were in for a tough time when the news that, following the United States Securities and Exchange Commission filing legal cases against the Binance and Coinbase exchanges, Crypto.com abandoned its US Institutional arm and Compound’s COMP token crashed to a record low.

However, things turned around in late 2024 when the crypto went above $100 for the first time since May 2022. On Dec. 13, 2024, COMP was worth about $110.15.

Let’s take a look at our Compound price predictions, made on July 24, 2024. We will also examine the Compound price history and talk a little about what it is and does.

Compound Price Prediction

Let’s look at the COMP price predictions made by CCN on Dec. 13. The projections will be made through the wave count method. We will add and remove 20% from the targets to create the minimum and maximum price predictions.

The most likely wave count suggests that COMP has completed a five-wave downward movement since the all-time high in May 2021. 

The price started an A-B-C structure in June 2023 and is currently in wave C. If wave C has 1.61 times the length and duration of wave C, COMP will reach a high of $224 in September. 

Then, the price could begin a downward movement as after the all-time high. 

During these projected upward and downward movements, the wave count method gives targets of $173 and $64 for the end of 2025 and 2026, respectively.

Then, we will use the daily rate of increase since launch to make a COMP price prediction for the end of 2030. 

Doing so leads to a target of $210.

Compound Price Prediction for 2025

The wave count method gives a COMP price prediction range between $138 and $280 for the end of 2025.

Compound Price Prediction for 2026

The wave count method gives a COMP price prediction range between $51 and $77 for the end of 2025.

Compound Price Prediction for 2030

The rate of increase since launch gives a COMP price prediction range between $168 and $252 for the end of 2030.

Compound Price Analysis

The weekly time frame COMP chart shows that the price has increased alongside an ascending support trend line since June. More recently, it validated it in November (white icon) and accelerated its rate of increase.

Since then, COMP has created four successive bullish weekly candlesticks, culminating in a new yearly high of $144, the highest price in nearly two years. 

This week, COMP validated the $85 horizontal area with a long lower wick (white icon). The next horizontal resistance is at $240, 120% above the current price. 

Technical indicators support the upward movement. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both increasing and above their bullish thresholds. 

So, the weekly chart suggests the COMP price will increase toward the next resistance at $240.

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Short-Term Compound Price Prediction

The COMP prediction for the next 24 hours is bullish. COMP will likely validate the $85 area as support and continue increasing to the next resistance at $240.

Compound Average True Range (ATR): COMP Volatility

The Average True Range (ATR) measures market volatility by averaging the largest of three values: the current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days. A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility. Since ATR values can be higher for higher-priced assets, normalize ATR by dividing it by the asset price to compare volatility across different price levels.

On Dec. 13, 2024, the Compound’s ATR was 12.59, suggesting relatively high volatility.

Compound Relative Strength Index (RSI): Is COMP Overbought or Oversold?

The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold. Movements above 70 and below 30 show over and undervaluation, respectively. Movements above and below the 50 line also indicate if the trend is bullish or bearish.

On Dec. 13, 2024, the Compound RSI was at 63, indicating bullish conditions.

Compound Market Cap to TVL Ratio

The Total Value Locked (TVL) to market cap ratio (TVL ratio) measures the valuation of a decentralized finance (DeFi) project by comparing its market capitalization to the total value of assets locked in its smart contracts. This ratio shows the project’s utilization and links the platform’s health to the value of locked assets. A ratio above 1.0 indicates overvaluation because the market cap exceeds the value of assets used in the platform. A ratio below 1.0 indicates undervaluation because the market cap is lower than the value of locked assets.

On Dec. 13 2024, the Compound TVL ratio was 0.31, suggesting undervaluation.

CCN Strength Index

The CCN Strength Index combines an array of advanced market signals to measure the strength of individual cryptocurrencies over the last 30 days.

Every day, it assigns a strength score, ranging from 0 to 100, to the top 500 assets by market capitalization on CoinMarketCap, focusing on both trend direction and the intensity of price movements.

• 0 to 24: Assets exhibit significant weakness, showing signs of sustained downtrend behavior.
• 25 to 35: The price tends to move within stable bounds with minimal volatility.
• 36 to 49: Assets begin a stable uptrend but without strong surges.
• 50 to 59: Consistent growth with moderate price advances, building momentum.
• 60+: Sharp price movements and high demand indicate stronger volatility and trend shifts.

The index dynamically adapts to rapid changes. For example, an asset experiencing a 100% increase within a short timeframe would see a sharp jump in its score to reflect the intensity of the rise.

However, should that asset stabilize at this new price level, the score will gradually taper down and align with the dampened momentum as the movement normalizes. The same principle applies to rapid declines: a sudden drop will spike the score downward, but as volatility decreases, the score will slowly adjust back up.

On Dec. 13, 2024, Compound scored XXX on the CCN Index, suggesting YYY momentum.

Compound Price Performance Comparisons

Best Days and Months to Buy Compound

We looked at the Compound price history and found the times when the price was at its lowest across certain days, months, quarters, and even weeks in the year, suggesting the best times to buy COMP.

Compound Price History

Following that, let’s now take a look at some of the key dates in the Compound price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done can help give us some very useful context when it comes to either making or interpreting a Compound price prediction.

Compound Market Cap

Market capitalization, or market cap, is the sum of the total number of COMPs in circulation multiplied by their price.

On Dec. 13, 2024, Compound’s market cap was $974 million, making it the 113th-largest crypto by that metric.

Who owns the most Compound (COMP)?

On Dec. 13, 2024, one wallet held more than 10% of the Compound supply.

Richest COMP Wallet Addresses

On Dec. 13, 2024, the five wallets with the most Compound  were:

• 0x3d9819210a31b4961b30ef54be2aed79b9c9cd3b. This wallet held 1,107,916 COMP, or 11.08% of the supply.
• 0x73af3bcf944a6559933396c1577b257e2054d935. This wallet held 787,646 COMP, or 7.88% of the supply.
• 0xc3d688b66703497daa19211eedff47f25384cdc3. This wallet held 744,915 COMP, or 7.45% of the supply.
• 0xf977814e90da44bfa03b6295a0616a897441acec. This wallet, listed as Binance, held 500,000 COMP, or 5.00% of the supply.
• 0x3f4aa3aa9fa1afe43897627a9a964235c0bf9375. This wallet held 253,095 COMP, or 2.53% of the supply.

Compound Supply and Distribution

From the Compound Whitepaper

In its technical documentation or whitepaper , Compound says it wants to make borrowing crypto easier.

It says: “In this paper, we introduce a decentralized system for the frictionless borrowing of Ethereum tokens without the flaws of existing approaches, enabling proper money markets to function and creating a safe positive-yield approach to storing assets.

Compound (COMP) Explained

Decentralized finance (DeFi) is one of the key concepts of blockchain-based finance, second only to cryptocurrency itself. The idea behind DeFi is that people should be able to access financial services without having to rely on traditional, centralized, institutions such as banks.

Compound is one of the first of many DeFi platforms to offer people loans in crypto. Compound is supported by its eponymous crypto token, also known by the ticker handle COMP.

How Compound Works

Whenever someone puts crypto in Compound, they get things called cTokens, which can be used to withdraw the crypto at any time. As the length of time a crypto stays in the system, the more cTokens are worth in relation to the original crypto, effectively earning their holders interest. 

On the other hand, people who want to take a loan from Compound can deposit crypto as collateral.

If the value of the borrowed cryptocurrency increases and becomes more valuable than the initial deposit, the borrowed funds can be sold off. If that happens, other users can repay a part of the remaining debt and receive some of the collateral at a lower price than its current market value.

Compound’s COMP token is a governance crypto. This means holders can vote on changes to the platform, such as deciding which cryptos are available for loans. Holders can also delegate their voting rights in return for COMP. People can also be buy, sell, and trade COMP on exchanges.

Because COMP is based on the Ethereum (ETH) blockchain, it is a token, not a coin. You might see references to a Compound coin price prediction, but these are wrong.

Is Compound a Good Investment?

Considering the COMP has been trading for about four years, it seems odd to say that it might just be too early to tell at the moment. The token suffered an all-time low last year but, to its credit, has shown signs of recovery and is at the sort of levels it enjoyed before the collapse of LUNA in May 2022. 

On the other hand, though, the ongoing lawsuit could prove problematic.

A lot will depend on whether investors can maintain their interest in DeFi, and whether Compound can do more to stand out in a crowded market.

On the other hand, there is no way of knowing whether COMP can continue to recover. As ever with crypto, you will need to do your own research.

Will Compound go up or down?

No one can really tell right now. While the Compound crypto price predictions are broadly positive, price predictions also have a well-deserved reputation for being wrong. Remember, too, that prices can and do go down and up. 

Should I invest in Compound?

Before you decide whether or not to invest in Compound, you will need to make sure you do your own research, not only on COMP but on other similar coins and tokens, such as NEXO or AAVE. More importantly, you must ensure you never invest more money than you can afford to lose.

Technical analysis by Valdrin Tahiri.

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Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.