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.
“TEN PERCENT OF MY NET WORTH IS IN THIS SPACE.”– Mike Novogratz, hedge fund manager, Galaxy Digital Assets
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:
- Price history
- The latest legislation
- Prediction strategies
- Expert analysis
- New investors
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 and how it works.
What is Compound?
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.
Do you still have questions about Compound? Rest assured, before we get into the price prediction, 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.
Who uses Compound?
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.
How does Compound gain value?
Like most cryptocurrencies, the value of Compound is 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.
Can Compound reach $1,000 per token?
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 $1,000 per token in the long term.
Where do people buy, sell, and trade Compound?
You can buy, sell, and trade Compound from any reputable crypto trading platform. 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.
Compound Price History
At its initial launch in 2020, COMP launched at $78.58. Upon launch, the native cryptocurrency of Compound proved to be very popular and hit its all-time high of $336.22 within a few months. Naturally, the price surge was followed by a drop.
The 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 skyrocketed to a new all-time high of $535.29. By April, the price had dropped to $475.97 before another surge saw the price rise by over 79% in just 22 days and reach another ATH 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. The price lost 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.
Expert analysis of the Compound price potential
One of the best tools we can use to try and determine the potential future price of Compound is to analyze the opinions of various crypto experts. Let’s delve into four estimated growth outlooks for various industry experts and analysts.
Digitalcoin released a bullish Compound forecast that predicted the price will average $457.12 in 2021 and rise to $653.14 in 2023. Over the longer term, it projects the price will climb to an average of $803.19 in 2025.
The Algorithm-based forecasting service Wallet Investor predicted that Compound will reach $68 at the end of 2021. Over the long term, Wallet Investor was less bullish than Digital Coin and predicted that Compound will be at $176 by the end of 2025.
Coin Price Forecast
Coin Price Forecast projected a far more bullish outlook for the future of Compound over the long term. It predicts that COMP will hit $441 by the end of 2021 and reach $768 by the end of 2023. They then predict the price to gradually climb and reach $939 by 2025.
Another particularly bullish expert analysis on Compound is Long Forecast. They predict the price of this unique digital token to potentially reach $378 by the end of 2021. In the following two years, they predict that the price could surge even further to over $2,000 in 2025.
Overall, the expert opinion is positive on the price prediction of Compound. Over both the short and long term, this innovative technology has the potential to be a very wise investment for smart investors. But what does technical analysis tell us about the Compound price forecast?
Technical analysis of the Compound price potential
Now we move onto technical analysis to try and predict the future price of Compound. This section will utilize powerful tools like the Japanese candlestick, chart patterns, and trading indicators. As well as giving traders the upper hand in day trading, they can enable us to discover long-term price predictions based on pure technicals when we assess longer time frames.
Compound Price Prediction 2021 – 2022
At the beginning of 2021, the price of Compound was around $184.81 but by the middle of the year, the price skyrocketed by 64% to $303.15. By the end of 2021, it’s predicted that the COMP price will be around $441 with a year-to-year change of +139%.
Compound Price Prediction 2022 – 2023
Starting 2022 at a predicted $441, it’s forecast that the price of Compound could rise to around $573 by the middle of 2022. By the end of the year, the price may see an increase of +132% on the current price as it finishes 2022 somewhere around $702
Compound Price Prediction 2023 – 2024
Between 2023 and 2024, it’s predicted that Compound will start the year at $702, before seeing the price rise to somewhere around $668 within the first six months of the year. It may climb again and finished off the year at a slightly higher price than the previous year at $768. An increase of +153% on the current price.
Compound Price Prediction 2024 – 2025
After starting 2024 at $768, it’s believed that COMP could rise to $867 sometime in the first six months of the year. It will then climb further to $935 towards the end of the year. An increase of +208% on the current price. It’s then predicted to go on the rise again onwards through 2025 and reach over $1,000 per token.
The technical analysis of the Compound price prediction forecast tells us that the price of COMP has the potential to reach up to and possibly beyond 200%. This data was provided by technical analysis from the Coin Price Forecast.
In conclusion, Compound 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, Compound has the ability to provide serious returns on investment whether it’s used by lenders as a form of passive crypto income or simply as a store of value.
With such a promising future potentially ahead, 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.
Where to buy Compound?
COMP is available to buy and trade on eToro alongside 18 other cryptocurrencies. 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. 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.
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Disclaimer – This content 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. Trading may not be suitable for all people. Anyone wishing to invest should seek his or her own independent financial or professional advice.