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The Ethereum platform has opened up countless avenues for innovation through the use of smart contracts. One of the most innovative platforms in recent times is Compound, which enables users to lend and borrow digital currencies seamlessly – without the need for burdensome credit checks.
In this article, we present our Compound Price Prediction in detail. We cover what Compound is and what it can offer users before showing you where you can buy Compound today – completely commission-free!
Compound (COMP)
Price
$46.09
Table of Contents
Compound Price Prediction 2021 to 2022
Due to the platform’s innovative nature, our Compound stock forecast is highly optimistic about its prospects. The bullet points below present a brief overview of our Compound price prediction 2021, highlighting where we believe the price could go in the upcoming timeframes.
One Month – The Compound price today is hovering around the $429 level, with the price showing no real direction at present. However, if Compound can generate some upwards momentum, we estimate that price could reach $538 within the next month.
Three Months – The range that the Compound price live is in will need to be broken before seeing some sustained bullish momentum. If Compound can break above the nearby resistance level, the price target for the next three months would likely be $800.
Start of 2022 – Our analysis speculates that, should the broader crypto market gain some momentum, Compound could be valued at $910 by the beginning of 2022. This would represent an increase of 112% from the current Compound price.
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Compound Price History – the Story of 2021 So Far
Before you buy cryptocurrency, it’s essential to do your due diligence. This process refers to the research and analysis conducted before placing an investment, which helps determine whether an investment is viable or not. With that in mind, this section explains what Compound is and how price reached this point.
The first thing to note is that Compound is not a digital currency used for peer-to-peer transactions. Instead, Compound is a decentralised application (dApp) running on the Ethereum platform. Many people buy Ethereum to gain exposure to applications such as this, as Ethereum is the leading platform for developers to utilise.
Compound operates within the scope of decentralised finance (DeFi), which refers to the process of removing the intermediary from a variety of financial services. In Compound’s case, the platform allows people to lend and borrow cryptocurrency without the need for a middleman. What’s more, users don’t need to perform credit checks to use Compound’s services.
Lenders can deposit various cryptos (such as ETH, DAI, USDT, UNI, and more) and receive a cToken in return. As a lender, you will earn more cTokens as interest, meaning that when you redeem these tokens in your original cryptocurrency, you will have made a return.
When you buy Compound Coin UK, you’ll actually be investing in Compound’s native token, COMP. Any time users interact with the Compound platform, such as by lending or borrowing, they are rewarded with COMP tokens. These tokens can be used to vote on various proposals that affect how Compound works and the interest rates charged.
So, if you were to invest in COMP, you’re essentially investing in the performance of the whole Compound platform. If Compound were to grow in stature, COMP would become more valuable – leading price to rise. On the other hand, if the Compound platform were hit with some negative news, then COMP would decline in price.
Throughout 2020, the Compound price ranged between $100 and $200, trading sideways for most of the year. However, between November 2020 and May 2021, the Compound price rose a staggering 853% to reach an all-time high of $916. This high was short-lived, as price fell by 78% over the next month.
Since that fall, Compound has traded between $313 and $540, with highs being followed immediately by lows. The current Compound price is hovering around $429, following a decent push upwards on the 14th of September. Time will tell where this coin could head, although the platform’s prospects are extremely promising.
Compound Price Forecast
Investing in cryptocurrency involves a comprehensive analysis of the factors that affect the specific digitalcoin and the crypto market as a whole. Various factors can affect the Compound price; however, technical and fundamental aspects tend to be the most prominent. With that in mind, the sections below explore these factors and provide insight into how they could affect price going forward.
Technical Analysis
As you can see from the current price action below, the Compound price is currently ranging and has been since early July. Ranging means that price is trapped in a ‘range’ between an upper price point and a lower price point. The upper and lower price points act as resistance and support, meaning that the price bounces from one to the other.
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When the price is trapped in a range, it will continue to trade sideways until some momentum can help price break out of the range. Recently, the Compound price was rejected from the support level around $360, followed by a bullish close on the daily chart. This is a good sign that price may head back to the top of the range.
If this does occur, lookout for a solid daily close above the $510 level. Price has not closed above this level since May, so if this does happen, it’ll provide a good indication that an uptrend will be starting. If the price rejects and goes down again, there will still be a solid buy opportunity near the bottom of the range.
Fundamental Analysis
Many people invest in Ethereum due to the platform’s popularity with dApp developers. These dApps can potentially change the way that many businesses operate – especially in the financial sector. Typically, many financial processes are handled by an intermediary that takes a ‘cut’ of the cash flow, making these processes unnecessarily costly.
Compound aims to solve this issue by allowing lenders and borrowers to connect directly. Through the use of smart contracts, two parties can enter an agreement and confidently know that they will not be ‘hurt’ by the other side of the transaction. This is because smart contracts are self-executing and will only allow transactions if certain conditions are met.
The great thing about Compound is that, due to the nature of the pool-based lending system on the platform, users can instantly end their positions whenever they like. So, if you loaned out some ETH and then wanted it back, you could do so immediately! This contrasts with traditional systems, which tend to go through clearinghouses and withdrawal processes before you can access your capital.
Compound Price Prediction 2025 – Long-Term Outlook
Compound is one of the first DeFi projects that has really taken off, paving the way for many more to follow. Understandably, there is resistance to these projects from the powers that be, who wish to perpetuate the current systems. That being said, times are changing, and Compound could be one of the first movers in this new way of doing things.
Most people who are new to the crypto market will immediately want to invest in Bitcoin – but there are many more options for speculative investors. As Compound offers a decentralised way to lend and borrow money, the platform does have a solid use case for investors. Furthermore, as COMP also acts as a governance token, there is a tangible community behind this project.
Time will tell whether COMP reaches the heights that many believe it could, although an investment in COMP will still provide indirect exposure to the DeFi tokens ecosystem as a whole. This is a fascinating aspect of cryptocurrency and one that would require an entire article to explain. However, it’s worth noting that these tokens could be poised to become very popular in the years to come, as they offer a way to escape from the traditional financial system that has been found to manipulate prices and affect markets negatively – just like in the Gamestop saga from early 2021.
Putting all of this together, our Compound price prediction 2025 remains encouraging, as our analysis highlights that this area of finance will continue to grow over the coming years. As people realise that there are different ways of doing things in the financial sector, there will likely be a shift towards DeFi projects. Due to this, we speculate that the price of COMP could reach $1200 by 2025.
Looking even more long term, our Compound price prediction 2030 estimates that this platform will continue to grow in popularity. With a market cap of just $2.3 billion according to coinmarketcap, there is still huge room to grow for this platform. Over the next nine years, we believe that the COMP cryptocurrency price could reach a valuation of around $1600 – and potentially beyond.
Compound Price Chart
This Compound forecast has attempted to be as unbiased and objective as possible, considering all of the elements that could affect the price. The recent bearish momentum in the broader cryptocurrency market hasn’t affected Compound as much as some other digital assets, highlighting the platform’s resilience. However, price is still ranging and looking for direction, meaning there needs to be some form of impetus to produce an upwards surge.
One thing to look out for is regulation, as entities such as SEC are rumoured to be clamping down on crypto-based lenders. The SEC has recently been looking into Coinbase and their attempt to launch a lending program, with the regulatory body aiming to sue Coinbase for breaching the rules. If this occurs, it could set a precedent that negatively affects DeFi protocols such as Compound.
67% of retail investor accounts lose money when trading CFDs with this provider.
The key here is to keep an eye on the price chart and wait for confirmation before investing. The Compound price has been relatively volatile for a few months, and as you’ll know, if you buy stocks, volatility can quickly lead to losses if you’re not careful. However, if you are investing in Compound over the long term, then short term volatility shouldn’t be too much of a concern.
Where to Invest in Compound
Before rounding off this Compound prediction, let’s take a look at the process of investing in COMP. As you should be aware by now, COMP is the native token of the Compound platform and is what users are rewarded with when they take part in the platform. Even if you are not a Compound user, you can still trade COMP through many of the best trading platforms UK.
If you are looking for the best place to purchase COMP, then look no further than eToro. Through extensive testing, we’ve found that eToro is one of the best places to buy COMP due to the platform’s strict security measures and cost-effective fee structure. Notably, eToro is heavily regulated by the FCA and other entities, ensuring you are as safe as possible when trading.
eToro will allow you to purchase COMP with 0% commissions, making them one of the most cost-effective brokers to partner with. The only thing to be aware of is the spread, which is the difference between the bid and ask prices. This spread tends to be competitive with other top brokers and is usually at its tightest during periods of high liquidity.
The minimum deposit at eToro is only $50 (£37), making the platform ideal for beginners. Deposits can be made via credit/debit card, bank transfer, and various e-wallets. Notably, eToro accepts PayPal, which is excellent news for people who prefer to use them as a payment method.
Finally, eToro offers a great feature called ‘CopyTrader’ that allows users to copy the trades placed by other eToro users seamlessly. This is great for people who don’t have time to study the charts and place trades, as it allows them to automatically generate a passive income stream. For this reason and the reasons listed above, we highly recommend eToro to anyone looking to invest in Compound.
Compound Price Prediction – Conclusion
In summary, Compound is an intriguing platform that has the scope to change the way that crypto lending occurs. Through smart contracts on the Ethereum blockchain, Compound can cut out the middleman in lending decisions, allowing users to lend or borrow digital currencies without credit checks. Although the threat of regulation is genuine, Compound still has massive scope to grow to great heights in the future.
If you’d like to purchase Compound today, then we’d recommend using eToro. eToro has over 20 million users worldwide and is the go-to platform for many crypto investors. What’s more, eToro charges zero commissions when trading and allows deposits from only $50.
67% of retail investor accounts lose money when trading CFDs with this provider.
FAQs
What is the price of Compound right now?
At the time of writing, the price of Compound is $429. This is an increase of 211% since the turn of the year.
What drives the price of Compound?
As more people use the Compound system, the COMP token becomes more valuable. Furthermore, the broader DeFi market’s prevalence is another driver of the Compound price.
Where can I buy Compound?
Many brokers now offer Compound as a tradeable asset. However, we recommend using eToro as you’ll avoid the hefty commissions that some other brokers charge.
Why is Compound going up?
Compound is currently ranging, which means that highs are usually immediately followed by lows. For Compound to increase, there needs to be some sustained bullish momentum over weeks and not days.
What will Compound be worth by 2022?
Our Compound price forecast estimates that COMP could be valued at $910 by 2022. This is likely to occur if the price can break out of this range and sustain some upwards momentum.
What will Compound be worth in 2025?
Our Compound prediction for 2025 speculates that the coin could be worth around $1200. Although this may seem like lofty heights from today’s price, the potential for DeFi applications is enormous, leading us to be very optimistic about the Compound price.
About Connor Brooke PRO INVESTOR
Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.
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