The opinion of respected crypto experts and technical-based analysis combined predict that the long-term forecast of COMP has the potential to reach up to $500. To avoid missing out on potential upcoming price surges in the cryptocurrency market, check out our easy-to-follow article on how to buy Compound.
"TEN PERCENT OF MY NET WORTH IS IN THIS SPACE."
- Mike Novogratz, hedge fund manager, Galaxy Digital Assets
In general, the majority of digital assets investors buy sit around in hot or cold wallets. Whilst any investment is a good investment, it’s even better if you can make it work for you and make passive income from it. One cryptocurrency that allows you to earn interest on digital assets is Compound.
Its ability to provide a stream of passive income to investors and a store of value has made Compound an increasingly attractive investment. This had led to increased demand for an insightful Compound price prediction, particularly since it has seen incredible returns on investment for many traders in recent months.
But are you wondering if it’s too late to start investing in Compound? You’re not alone, many people are curious about whether investing is a good idea. I was one of those people until I began to use a range of factors to research the future price of this innovative digital currency such as:
By analyzing all of these factors, I was able to find out that there’s never a bad time to invest in Compound. For example, statistics from the leading trading platform of eToro tell us that sales have skyrocketed in the past few months, demonstrating that demand for this coin is very high.
But what does the future hold for investors who get on board now? Will it rise even further? Our Compound price prediction aims to answer all. But first, let’s start with just what COMP is and how it works.
Launched in 2017, Compound is a popular decentralized lending platform on the Ethereum network. It hosts lending pools that allow crypto investors to earn interest on the various cryptocurrencies they own. These lending pools allow crypto holders to supply their crypto to others seeking to lend at algorithmically set interest rates based on supply and demand.
From Ethereum to Uniswap, Compound has developed 14 pools of cryptocurrencies and has grown into a popular method for investors to acquire compounding interest on their digital assets over time. The platform is very flexible as lenders can hold a position within a pool for as long as they want and freely withdraw funds as they please.
Compound launched its own native cryptocurrency known as COMP in 2020. Users of Compound could earn COMP in several ways whether it’s by borrowing, repaying, or withdrawing on the platform. In addition, People who own COMP have voting rights on the system’s protocol, and they can assign those rights to someone else.
Like any cryptocurrency, Compound has its fair share of incredible pros and limiting cons. We always aim for transparency in our articles. So in this section, we’re going to cover some of the most important pros and cons of COMP.
| Pros | Cons |
|---|---|
| Compound has seen improvements in total value locked | Compound competes with other Ethereum DAPPS for market share. |
| Compound provides access to DeFi Bitcoin | |
| Compound is a Secure Protocol |
Do you still have questions about Compound? Rest assured, before we get into the price prediction and find out whether its a good investment, next we’ll cover some frequently asked questions about Compound to give you a better understanding of the original digital asset and its price potential.
Compound is used by those wishing to borrow cryptocurrency to invest in businesses, projects, or otherwise. It’s equally used by lenders looking to loan their digital assets out in exchange for compound interest to create a stream of passive income.
Like most cryptocurrencies, the value of the COMP ecosystem and its native tokens are largely driven by speculation in its current state. As more people discover the wide range of its uses, its value grows. Due to its innovative nature and continuous growth of significant partnerships, support for COMP is only expected to grow as cryptocurrencies become a more widely accepted alternative to fiat currencies. When it does, the value will likely grow in sync.
Based on its recent price surges and innovative nature of being a platform with a growing userbase looking to make passive income and investments, it’s possible that Compound could reach $500 and over per token in the long term.
You can buy, sell, and trade Compound from various crypto trading platforms. If you are a new investor, then we suggest using eToro. It’s safe, regulated, and beginner-friendly. The eToro interface is very simple to use, and it has an array of trading tools to allow you to trade safely.
At its initial launch in 2020, COMP launched at its lowest price $78.58. Upon launch, the native cryptocurrency of Compound proved to be very popular and gained traction before it hit its all-time high of $336.22 within a few months. Naturally, the coin price surge was followed by a drop as is common with virtual currencies in the world of decentralized finance.
The COMP token price subsequently stagnated between $100 and $150 for most of the rest of 2020 except for another surge in early September that saw the price rise to $256.35. In November, it dropped to a low of $87.36 before recovering past $100 the same month. However, things changed drastically in 2021.
In February of 2021, the price of Compound platform tokens skyrocketed to a new all-time high of $535.29. By April, the price had dropped to a maximum price of $475.97 before another surge saw the price rise by over 79% in just 22 days and reach another maximum price and all-time high when it hit $854.45 on the 12th of May.
But like almost all other cryptocurrencies, COMP was unable to miss the crypto crash of late May. It saw a price drop of just under 60% in twelve days and sunk to $344.54 on May 24. As of 9 June, it had risen slightly to $367.37.
At a current price of $42.26, Compound is trading at a steep discount from its all-time high near $850. But while the hype has long faded, COMP still carries relevance in the decentralized finance (DeFi) ecosystem. It underpins one of the earliest and most battle-tested lending protocols on Ethereum.
Should DeFi regain traction in the next bull cycle, COMP could realistically revisit the $100–$150 range, especially if institutional DeFi interest strengthens and borrowing demand increases.
If macro conditions support a broader crypto uptrend and Compound delivers new governance or technical innovations, $200+ isn’t off the table. This scenario assumes COMP reclaims a larger share of the DeFi lending market, competing with newer protocols.
In conclusion, this Compound price prediction 2021 to 2025 shows that COMP provides a unique opportunity for crypto investors to make their investments work for them and earn significant compound interest on their assets. This hasn’t gone unnoticed and this decentralized platform has gained a significantly growing userbase since its foundation in 2017.
Based on expert and technical analysis as well as historical data, investor confidence is strong and the Compound price today has the ability to become a profitable investment with a bright future whether it’s used by lenders as a form of passive crypto income or simply as a store of value in digital coins.
With such a promising future potentially ahead as a long term investment, a common question asked by many is just where to invest in this innovative investment for the long term? The answer lies in a reputable and well-established trading exchange with access to vital trading tools like eToro.
COMP tokens are available to buy and trade on eToro alongside 18 other cryptocurrencies from Bitcoin to Basic Attention Token. This is a well-established, highly regulated, and secure platform that has the potential to revolutionize your crypto trading.
What’s more, is that eToro allows you to access their incredible array of trading tools such as the Stop Loss, Take Profit, and built-in charting software that all let you maximize your potential profits whilst ensuring safe trading practices that protect your hard-earned funds. Also, eToro offers Leverage Trading on COMP tokens. This allows you to multiply small amounts to become large powerful positions that drive massive profits.
Overall, the financial situation, risk tolerance, and investment strategy of each person vary. Only invest money you can afford to lose and balance out the risky nature of crypto investment by building a diversified portfolio.
Disclaimer – The content in this compound price prediction 2021 to 2025 is for informational purposes only and is not investment advice. The trading of COMP and other alternative cryptocurrencies has potential rewards, and it also has potential risks involved. The current market status can be volatile and a bearish trend after a price drop is just as likely as a bullish trend in the crypto market, so trading Compound Coin may not be suitable for all people. Anyone wishing to invest should do their own research and seek his or her own independent financial services or professional advice.