Compound Price Prediction 2024: Can Veteran Lender and COMP Flourish?
What's next for Compound?
Key Takeaways
- Compound was a pioneer in the crypto lending space, and COMP is its native token.
- COMP crashed to an all-time low in mid-June 2023, and has made something of a revival.
- Can COMP keep going back up, or is it all too little, too late?
- One Compound price prediction said the token could reach $150.49 by 2025.
Compound was one of the first, and arguably the most important, crypto lending platform. While it took some big hits during the disastrous year of 2022, it remained a somewhat significant player in the crypto space.
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.
Since then, though, COMP has demonstrated some resilience. A major crypto player, or whale, bought a sizeable sum of COMP in July 2023, sending the price up.
The price slumped after that. There was a recovery in October, but an ongoing lawsuit has the potential to dampen investors enthusiasm.
Compound did not immediately respond to a request for comment.
But what is Compound (COMP)? How does Compound work? Let’s see what we can find out, and also take a look at some of the Compound Price Predictions that were being made as of February 19, 2024.
Compound Price Prediction
With that all out of the way, let’s take a look at some of the Compound price predictions that were being made as of 28 June 2023. It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong. Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
| 2024 | 2025 | 2030 | |
|---|---|---|---|
| Prediction #1 | $93.88 | $111.65 | $188.88 |
| Prediction #2 | $96.08 | $139.72 | $901.35 |
| Prediction #3 | $130.38 | $150.49 | $444.62 |
First, CoinCodex had a short-term Compound price prediction which said it would rise to $67.75 by February 24 before reaching $72.57 by March 18. The site’s technical analysis was bullish, with 17 indicators sending positive signals and four making bearish ones.
Compound Price Prediction for 2024
CoinPriceForecast said Compound would reach $93.88 by the end of the year. Meanwhile, PricePrediction.net had it at an average of $96.08. DigitalCoinPrice had a price rise in store, with it predicting it could trade at $130.38 this year.
Compound Price Prediction for 2025
DigitalCoinPrice suggested COMP could reach $150.49 in 2025 while CoinPriceForecast had it at $111.65 that year. PricePrediction.net, meanwhile, said it would trade at $139.72 next year.
Compound Price Prediction for 2030
Looking forward to a long-term Compound price prediction, PricePrediction said COMP could be worth $901.35 in 2030. DigitalCoinPrice had the token reach at $444.62 that year. CoinPriceForecast, on the other hand, said it would reach $188.88 by the end of the next decade’s first year.
Google Gemini AI Price Prediction for Compound (as of February 19)
Google’s Gemini AI platform gave the following price prediction for Compound on February 19. Please remember that the exact price prediction of an asset or cryptocurrency in the future is nearly impossible to achieve. Additionally, artificial intelligent price predictions are predicated on past performances and are in no way entirely accurate.
Short Term (Next 3 months)
- Expected price: $72.74
- Factors to Consider:
- Overall market sentiment: The broader cryptocurrency market trend significantly impacts individual coin prices.
- Compound-specific news and developments: Any major updates or partnerships involving Compound could affect its price.
- Regulatory landscape: Changes in regulations could impact the adoption and use of Compound.
- Macroeconomic factors: Global economic conditions can also influence investor sentiment and asset prices.
Medium Term (Next 6 months)
- Expected price: $142.04
- Factors to Consider:
- Overall market sentiment: The cryptocurrency market is highly volatile and can be influenced by various factors, such as news events, regulations, and investor confidence.
- Compound’s specific developments: The project’s roadmap, partnerships, and adoption rate can impact its price.
- Technical analysis: Analyzing historical price charts and technical indicators can provide insights into potential future price movements.
Long Term (Next 5 years)
- Expected price: $566.49
- Factors to Consider:
- Overall cryptocurrency market trends: The future of COMP is likely tied to the overall performance of the cryptocurrency market. If the market experiences a bull run, COMP could see significant price increases. Conversely, a bear market could lead to price declines.
- Compound’s development and adoption: The success of Compound’s platform and its ability to attract users will impact its price. If the platform sees increased usage and adoption, the price could rise.
- Regulatory environment: Government regulations surrounding cryptocurrencies could significantly impact the market and COMP’s price.
- Unforeseen events: Unexpected events, such as hacks or major economic downturns, could also affect the price of COMP.
COMP Price History
Let’s now take a look at the Compound price history . While we should never take past performance as an indicator of future results, knowing what the token has done can help give us some very useful context when it comes to either making or interpreting a Compound price prediction.
COMP first came onto the open market in June 2020, when it was worth about $78. It soon shot up, breaking past $300 shortly after before dropping down again.
Compound responded well to the crypto bull market of early 2021. It broke past $500 in February and moved to an all-time high of $854.45 on 12 May 2021.
The market fell over the summer. Despite a brief resurgence to above $500 in September, it closed the year at $200.
Compound’s price, ultimately, fell in 2022, much like the vast majority of other cryptos. The token dropped below $100 briefly in March, and has not been worth three figures since early May last year. By 18 June, it had dropped to a low of $26.52.
Although it made something of a recovery over the course of the summer, the bankruptcy of the FTX (FTT) exchange saw another slump. It closed the year at $31.55, having lost nearly 85% of its value throughout the course of 2022.
Compound in 2023 and 2024
2023 was something of a mixed bag for COMP. The token initially rallied, reaching $59.78 on 21 February. Then, a range of factors, including the collapse of the Silvergate bank in March, pushed the price down. By the end of May, it was worth $35.85.
June saw disaster hit the markets as the fallout from the SEC’s lawsuits took hold. On 10 June, COMP fell to an all-time low of $23.66 in response to the news that Crypto.com (CRO) had suspended its American institutional operations.
Following on from that, though, COMP made a recovery. The news that a whale had bought half a million COMP tokens saw the price shoot up. On July 16, it reached $84.86.
There was another downturn. By September 11, COMP was down to $35.05. However, the crypto was able to make a recovery and. by October 31, it was worth about $46.85.
It then ended 2023 at $58.48 and moved up in early 2024, reaching $60.53 on February 19, 2024.
At that time, there were 8.1 million COMP in circulation, out of a total supply of 10 million. This gave the token a market cap of about $489.0 million, making it the 127th largest crypto by that measurement.
Is Compound a Good Investment?
Considering the COMP has been trading for about three 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.
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 as well as 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 make sure that you never invest more money than you can afford to lose.
Who are the Founders of Compound?
Crypto entrepreneurs Geoffrey Hayes and Robert Leshner , who were formerly employees of online food delivery company Postmates, founded it in 2017. Leshner founded Superstate, an organization specializing in creating bond funds on Ethereum, in 2023. Hayes has a degree from the University of Pennsylvania.
Who owns the most Compound (COMP)?
On February 19, 2024, a wallet linked to Compound itself held more than 16.95% of the token’s supply.
Richest COMP Wallet Addresses
On February 19, 2024, the five richest Compound wallet addresses were
- 0x3d9819210a31b4961b30ef54be2aed79b9c9cd3b. This wallet held 1,694,523 COMP, or 16.95% of the supply.
- 0xc3d688b66703497daa19211eedff47f25384cdc3. This wallet held 900,000 COMP, or 9.0% of the supply.
- 0xf977814e90da44bfa03b6295a0616a897441acec. This wallet held 369,712 COMP, or 3.70% of the supply.
- 0x73af3bcf944a6559933396c1577b257e2054d935. This wallet held 351,441 COMP, or 3.51% of the supply.
- 0xfa9b5f7fdc8ab34aaf3099889475d47febf830d7. This wallet held 305,957 COMP, or 3.07% of the supply.
Fact Box
| Supply and distribution | Figures |
|---|---|
| Maximum supply | 10,000,000 |
| Circulating supply | 8,077,707 (81% of maximum supply, as of February 19, 2024) |
| Holder distribution | Top 10 holders owned 48% of the maximum supply, as of February 19, 2024 |
From the 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 which 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 flip side, people who want to take a loan out from Compound can deposit crypto as collateral.
If the value of the cryptocurrency that was borrowed increases and becomes more valuable than the initial deposit, the borrowed funds can be sold off. If that happens, other users have the opportunity to 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 and not a coin. You might see references to such things as a Compound coin price prediction, but these are wrong.
Compound Attention Tracker
Here is a chart for the Compound Google search volume for the past 90 days. This represents how many times the term “Compound COMP” has been Googled over the previous 90 days.
FAQs
Will Compound reach $1,000?
It is possible, but COMP may not hit four figures for some time yet. PricePrediction.net’s COMP price prediction said it could reach $1,000 by 2031.
It is worth keeping in mind that Compound has never traded at $1,000, with its all-time high, set in May 2021, coming in at $854.45.
What is Compound used for?
COMP holders can vote on changes to the Compound crypto lending platform. People can also buy, sell, and trade Compound on exchanges.
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.
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