Author: changehero
August 26, 2021

About a year ago, DeFi blew up with yield farming, which was started with Compound and COMP. Looking back and forward, we can now see what the future has in store for COMP holders. Interested? Find the Compound price prediction 2021 and on forth in our new article below! Compound Price Predictions 2021–2030 [table id=37 […]

Compound Price Prediction 2021, 2025 and 2030

About a year ago, DeFi blew up with yield farming, which was started with Compound and COMP. Looking back and forward, we can now see what the future has in store for COMP holders. Interested? Find the Compound price prediction 2021 and on forth in our new article below!

Compound Price Predictions 2021–2030

[table id=37 /]

  • In the remainder of 2021 Compound can still reach upper ranges of $910;
  • In Compound price prediction 2022, the token can gain at the very least +50% and rise to $650;
  • The Compound price can reach and exceed $1,000 as early as in 2024. By 2030 and even 2025 some opinions claim it can even exceed $10,000.

What is Compound and COMP?

Compound logo
Source: Compound Repository on GitHub

Compound is a financial protocol built on top of the Ethereum blockchain that enables smart-contract regulated lending and borrowing.
The development of the Compound protocol is decided by community voting. To vote, Compound users use COMP tokens.
COMP tokens can be received by providing liquidity to a pool or by lending. To learn more about the protocol and COMP, check out our Beginner’s guide to Compound.

COMP Price History

COMP Price in 2020

COMP Price in 2020
Source: CoinMarketCap

COMP tokens arrived on the market in the very midst of the DeFi summer: in fact, Compound started the “yield farming” trend. The program was launched to a resounding success when COMP was worth $338 but soon became oversold and corrected.
For the rest of 2020, COMP mostly stayed between $100 and $200. The year closed with COMP at $150.

COMP Price in 2021

COMP Price in 2021
Source: CoinMarketCap

In early 2021, COMP price caught on to another market trend, this time following the Bitcoin rally. It peaked in May, when COMP reached the current ATH of $911.20 (May 12, 2021).
At the time of writing, the COMP price is $409.92 and the token ranks 56th by market capitalization according to CoinMarketCap.

What Can Influence the Price?

Institutional Interest

Unique qualities of DeFi are catching the interest of institutional investors. Digital currency investment company Grayscale unveiled a DeFi fund which includes COMP tokens to their clients in July.
The team behind the project, Compound Labs, themselves moved in that direction by establishing Compound Treasury in the same month. It is a company that seeks to offer institutional investors all benefits of Compound without the need to engage with the protocol directly.

Retail Adoption

DeFi in general is in a quirky position when it comes to mass adoption: on the one hand, no bank accounts or accreditations are required to use DeFi protocols. On the other hand, these days protocols are somewhat interdependent and there are barely any easy ways to on-ramp to DeFi.
Customer-oriented apps like Dharma try to integrate protocols to give users a choice and access to DeFi products. DeFi still has a long way to go to provide financial services with lower entry barriers but it has to start with something.

Protocol Improvements

Since COMP is a governance token that represents voting power, it is particularly attractive to frequent Compound users. Protocol improvement proposals can spark interest in the token and drive the price up.
For instance, in February, when COMP holders were voting to increase the collateral factor of the WBTC market, COMP price was pushed from $382 to $555.
Of course, the community makes decisions not only about minor changes: major protocol changes also require consensus. Improvement proposals such as integrations with Ethereum Layer-2s and gas optimization are discussed on the official forum.

Twitter Posts on Compound and COMP


SOLStarter co-founder Zhi Ko shared a piece of technical analysis on COMP. Their prediction is continuation of an uptrend with a sharp spike up.


Influencer Crypto Texan makes a case for banking to integrate DeFi: high yields can improve the sphere both for banks and their customers.


Further proof of institutional and investor interest: COMP is tracked by the Bloomberg Galaxy DeFi index.

Compound Price Prediction 2021

BraveNewCoin Compound Price Prediction: $640-740

Analyst Josh Olszewicz evaluates on-chain characteristics of COMP as bearish. He also warns that total value locked and borrowing volumes skyrocketing could mean liquidations soon, so watching the metrics is advised.
On the COMP-USD chart, the resistances lie at $640 to $740. Relative strength index (measuring impact of price change) and Ichimoku cloud (sum of five averages) suggest the neutral trend for the near future.

LongForecast Compound Coin Price Prediction: $299-455

Prediction service LongForecast projects that the uptrend in COMP can come to an end quite soon. Starting from September, possible highs will be getting lower to $455 and even $382.
As the highs, so the lows will be descending, down to $299 in December. Projected closing price for COMP in 2021 is $321.

CoinQuora Compound Price Prediction: $91-910

Compound Price Prediction 2021
Source: CoinQuora

CoinQuora analysts use the Wyckoff theory to predict possible trends, as well as support and resistance levels. To continue a bullish phase, reclaiming multiple resistances is necessary: $468.73, $584.61, then $901.68.
Currently, the COMP price is back in markup but the first resistance is yet to be overcome.

Compound Price Prediction 2022, 2023 and 2024

LongForecast COMP Forecast 2022: $572-658

What about Compound price in a year? By August 2022, COMP will climb out of the slump and appreciate in price. Compound token will be trading in the $572-658 range with a 51.5% average growth.

CryptoNewsZ Compound Coin Price Prediction 2023: $750

In two to three years, the CryptoNewsZ team says, COMP can reach a degree of adoption which would drive the demand for COMP for the price to reach $750.

Digital Coin COMP Price Prediction 2024: $1,018.08

Going by projections of the DigitalCoinPrice prediction service, on average COMP will be worth more than $1,000 as soon as in 2024. Moderate volatility will be observed, with highs reaching $1,215 and lows being $818.

Compound Price Prediction 2025

CryptoNewsZ Compound Coin Price Prediction: $1,000+

In four to five years we can expect a new market cycle to follow after the next Bitcoin halving. As such, the COMP forecast is optimistic and reaching the $1,000 mark is reasonable to expect.

Digital Coin Compound Crypto Price Prediction: $1,214

In the same vein, DigitalCoinPrice gives an average estimate of $1,214 for COMP in 2025. Monthly averages can range from $1,065 to $1,407.

Gov.Capital Compound Coin Price Prediction: $7,649-11,381

The most bullish forecast for the next few years is given by the Gov.capital service. Using historical data for COMP, they predict growth to $7,649 in January to $11,381 at the year’s close.

Compound Price Prediction 2030

In a more distant future, who knows what the crypto market will look like? Some services and experts still try to give an educated guess.
The Cryptocurrency Price Prediction website puts the ten-year target in the $8,330-10,412 range. Website Price Prediction goes even farther and claims COMP will trade between $12,726 and the maximum of $14,609.

ChangeHero COMP Price Prediction

Compound is one of the leading DeFi protocols in the current market but there is always competition. If it manages to attract and keep the attention of institutions, Compound could become the next big crypto project.
In the short term, analysts have differing opinions, so COMP would work better to hold for the long term. If the project doesn’t fail for unforeseeable reasons, it can eventually easily exceed $1,000.

How to get COMP on ChangeHero?

The process of buying COMP with crypto on ChangeHero is not complicated at all. It only takes five steps:

  1. Choose the currencies on the home page, amounts and the type of exchange. Provide your wallet address in the next step and check the amounts;
  2. Double-check the provided information, read and accept the Terms of Use and Privacy Policy;
  3. Send in a single transaction the sum of cryptocurrency you will be exchanging. Fixed Rate transactions have a 15-minute limit;
  4. And now, relax! We are doing all the work: checking the incoming transaction and doing the exchange as soon as it arrives;
  5. As soon as the exchange has been processed, your COMP are on the way to your wallet. We’ll be happy to hear your feedback if you enjoyed using ChangeHero.

Support team is always available in chat on our website, official Telegram group or through the email: [email protected].

Conclusion

Compound is indisputably one of the leaders on the current market and DeFi but that could always change. It is now up to the COMP holders to keep the protocol in the game and keep it growing.
You can always find more about Compound and adjacent projects in our blog. For daily content, subscribe to ChangeHero on Twitter, Facebook, Reddit and Telegram.

Frequently Asked Questions

[sc_fs_multi_faq headline-0=”h4″ question-0=”What will Compound be worth in 2021?” answer-0=”Various sources give estimates in the range between $91 and 910 for Compound in 2021. ” image-0=”” headline-1=”h4″ question-1=”What will Compound be worth in 2022?” answer-1=”According to different analysts, in 2022 Compound price can grow to $572-658.” image-1=”” headline-2=”h4″ question-2=”What will Compound be worth in 2025?” answer-2=”Depending on the source, COMP token can grow up to $11,381 in 2025.” image-2=”” headline-3=”h4″ question-3=”What will Compound be worth in 2030?” answer-3=”While not certain, analysts predict that in 2030 COMP will be changing hands for up to $14,609.” image-3=”” headline-4=”h4″ question-4=”Is Compound a good investment?” answer-4=”Most analysts agree that in the long term, Compound is a decent investment.” image-4=”” headline-5=”h4″ question-5=”Will Compound coins reach $1,000?” answer-5=”Some long-term forecasts predict COMP can reach $1,000 as soon as in 2024.” image-5=”” count=”6″ html=”true” css_class=””]


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Disclaimer

This article does not constitute financial or investing advice. No price prediction or forecast is guaranteed to provide exact information on the future price. Past performance is not indicative of future results.
When dealing with cryptocurrencies, remember that they are extremely volatile and thus, a high-risk investment. Always make sure to stay informed and be aware of those risks. Consider investitions in cryptocurrencies only after careful consideration and analysis and at your own risk.

Author: changehero
July 23, 2020

Compound is one of the better-known names out there when it comes to DeFi, despite being around for a bit more than a year. The buzz that is growing into a rumble is connected with the new Compound token, which popularized the so-called ‘liquidity mining’. Let’s try to look under the hood of the Compound […]

What is Compound (COMP)? A Beginner's Guide

Compound is one of the better-known names out there when it comes to DeFi, despite being around for a bit more than a year. The buzz that is growing into a rumble is connected with the new Compound token, which popularized the so-called ‘liquidity mining’. Let’s try to look under the hood of the Compound protocol and COMP token to see why it is booming in DeFi and what does ‘yield farming’ that is the new hot topic even mean.

What is the Compound protocol?

Compound protocol emerged to fill the niche that was not yet developed even by the existing DeFi projects — frictionless borrowing of crypto assets that lets its users gain the time value from assets. The time value of money is a concept that lies at the core of interest earning models.

The Compound protocol is designed to be able to algorithmically calculate interest rates for each asset in accordance with the supply and demand, which was possible in traditional finance. Before Compound, the decentralized borrowing models were already in place but forced costs onto users because lenders were required to post, manage and in the case of collateralized loans supervise offers and active loans.

On a basic level, markets on Compound incentivize liquidity: the more an asset is loaned, the higher is the interest rate (although the formula in the whitepaper is a bit more nuanced). Users can either supply tokens into the protocol or borrow/sell/use/re-lend assets if they put some of their balance as collateral. At the moment, there are 9 markets (one — SAI — is under liquidation): users can supply ETH, 0x, Augur, WBTC, BAT, USDT, DAI, USDC in return for a corresponding cToken (cETH, cZRX etc.) which accrues interest.

How did Compound and COMP start?

Robert Leshner and Geoff Hayes founded Compound in 2017 with a group of developers: Art Peel, Torey Atccity, Mason Fischer, and Calvin Liu. The announcement of protocol development was made by Robert Leshner on his Medium on January 31, 2018. The Compound Version 1.0 whitepaper was published in February 2019 by the founders. Among the investors that helped the protocol to be launched are Andreessen Horowitz, BainCapital Ventures, as well as the industry giants such as Coinbase and Polychain Capital.

It did not take the founding team too long to make advancements in the Compound protocol. Migration to v.2 happened in May, 2019. It is the current version that at launch supported Ether and Ethereum assets, such as 0x, Augur, Basic Attention Token, Dai, and USDC. By that time, the protocol already held about $24 million.

Enter Compound token, one of the most prominent governance tokens.
Source: Compound

At the initial stages, though, it received a lot of criticism for being governed by the founding company, so it was about time to take the next step and introduce the community-based governance model. On May, 27, Leshner made the announcement that the company delegates all the future decisions about the changes to be made to the protocol to its community. This is where the COMP token comes into play. On June, 11, the Proposal 7 which signified the start of Compound token distribution was published for voting. It was unanimously approved two days later, and on June, 15 the model was put in place.

How does Compound work?

Compound markets allow everyone to lend and borrow assets at an interest rate which is applied to everyone uniformly and adjusts algorithmically.

Lending Assets

The most attractive point in Compound for investors and the mechanism that encourages them to provide liquidity to the Compound markets is earning interest on the supported Ethereum assets. In return the users get cTokens that correspond to the asset they deposited (cDAI, cETH etc.) which earn interest. If there is enough liquidity on a market, a corresponding cToken will not yield much, but contributing to a pool with low liquidity will let you earn more. cTokens can be redeemed for corresponding assets plus accumulated interest at any time.

Borrowing Assets

The assets deposited to the protocol in return for cTokens also act as a collateral to receive some borrowing capacity. The more demand there is for a certain asset, the more borrowing capacity its cToken gives. In a scenario when debt outpaces borrowing capacity, the collateral will be exchanged for an overborrowed asset at a rate unfavorable to the debtor to repay the debt and discourage poor debt management. Other users can act as liquidators of debt, and they get a chance to receive this collateral at a rate favorable to them.

Under the hood

The demand/supply ratio and prices of tokens are fetched by a Price Oracle from a committee which pools the data provided by top 10 exchanges.

In addition, there is a policy layer called Comptroller that validates the data from both the market and the user before allowing an action to proceed. For example, if a user wants to borrow ETH, the Comptroller will check if the ETH price provided by the Oracle is valid, and if they want to deposit ETH as a collateral, it will validate both price and a collateralFactor of cETH.

What is a COMP token?

Compound token (not to be confused with cTokens) is a relatively new kind of assets: governance tokens. The idea itself is not entirely new (take TRON or any DPoS network as an example) but Compound token is used exclusively in community governance. COMP token-holders can either debate, propose, and vote on all changes to the protocol themselves or delegate some of their voting power to other community members.

Compound tokens are distributed to users that interact with the markets, regardless of whether they borrow, lend, withdraw or repay an asset, in proportion to the borrowing demand in the market. So, right now a user will earn COMP faster if they interact with the DAI market rather than, say, 0x, because the demand to borrow DAI is higher. Daily distribution of the tokens is split between suppliers and borrowers in 50/50 ratio. COMP are accrued to a user’s wallet first, and then can be withdrawn from the account.

How much is a Compound token worth?

Compound token price chart
Source: CoinMarketCap

Compound started attributing COMP to users a little more than a month ago. It is already listed on the large exchanges, including Coinbase and Binance, and its price ATH (registered on June, 21), was $381.89. At the moment of writing, there are 2,561,279 COMP in circulation, and with the market cap of $395,994,856 one COMP costs $154.61. The distribution will continue until there are 10 million Compound tokens in circulation.

How to use Compound token?

The Compound token, first and foremost, represents the voting power in the Compound protocol. It is transferable and can be delegated. 

The most common use for it now is, surprisingly, a quite new activity called ‘yield farming’ or, alternatively, ‘liquidity mining’. Since the interest rates in Compound depend on the supply/demand ratio, they are constantly changing, so to maximize profit, savvy market players move their assets between markets so that they catch the highest rate — this is yield farming. Liquidity mining comes into play when on top of that, a user gets additional assets, like COMP, the value of which is supposed to come from the value of the protocol. This is, however, only a temporary situation, because when the free money is distributed like this, the market price of the token is going to decrease, unless the community comes up with a way to give COMP a use case good enough to entice more investors to join, for example, incentivizing holding the token in the protocol as opposed to withdrawing it.

Are there any controversies around Compound?

Compound is a relatively new player on the market, so it does not have a long history of ups and downs. Generally, it is regarded as one of the more viable and legitimate projects out there, backed by its investors and partners.

That being said, the Compound protocol was no stranger to a liquidity mining frenzy, and its system got exploited: previously, riskier markets with less liquidity offered more rewards in COMP, which had recently hit an ATH. This has led to a crazy influx in low-liquidity markets and skewed the distribution rate so much, the community had to change the COMP distribution rules.

There was also a shortcoming in one of the apps that let users borrow DAI against the collateral of cDAI, which might have inflated the reported amount of DAI locked in the Compound protocol to be more than there are DAI tokens in existence. If true, that was a situation where the debt was way over the existing supply, which is risky to put it lightly.

At some point, before the existing governance model, the power Compound Labs held over the protocol was the source of some concerns. With the new governance model in place and COMP token distribution the system will gradually get more democratic and decentralized.

COMP on Twitter

Robert Leshner, the Compound company spokesperson praising the new COMP Governance forum.
Source: Twitter

Robert Leshner, the Compound company spokesperson is on Twitter under the handle of @rleshner. Since now the company is in the contributor position, most of the developments and changes will be made by the community. They recently have launched a new forum, on which Leshner comments favorably.

Matrixport partnership announcement with Compound
Source: Twitter

Matrixport is one of the partners of Compound in the growing list. They recently spoke about how Compound helps their customers gain more value from their product. Initiatives like this increase the protocol’s exposure, help attract new customers and partners and increase the level of trust to all the projects involved.

Trader @Mesawine1 predicts that COMP will see another bull run soon.
Source: Twitter

Most of the traders and farmers are in COMP because of the gains it gives them. Trader @Mesawine1 thinks that COMP token is about to add in value yet again, based on its performance.

Where to get COMP tokens?

We have already mentioned the mechanism behind Compound token distribution and the fact that it is traded on the largest exchanges. However, there is a much easier way to get your hands on the token — ChangeHero has recently added it to the list of supported coins. As always, for a small fee we will find the best rate on the market for you, handle the exchange from any asset from the list and deliver COMP safely and swiftly into your wallet.

Which wallet to choose for Compound tokens?

As a ERC-20 token, COMP can be stored either in Ethereum-specialized wallets such as MEW, or in most multi-currency wallets like Trust Wallet or Atomic. Cold storage of COMP is possible with Ledger or Trezor devices, and in Trezor you can exchange Compound tokens with an in-app function powered by ChangeHero.

However, not all wallets support the functions of COMP management yet. Among those that do are Exodus, ZenGo, imToken and Zerion. In Exodus, for example, you can use the Compound protocol to the full extent, and also swap COMP with our service’s help.

What future plans are there for Compound?

The future of the protocol in the new governance model belongs to the community and depends on which proposals they put out and vote for or against. For example, the USDT market was one of the first proposals made and approved by the public vote rather than introduced by the developers.

There are already quite a few partner products that leverage the protocol to provide value for their customers. For instance, such applications include custodial solutions (Coinbase Custody, Anchorage, BitGo), tax accounting (Lumina, CryptoTaxTools, Cointracker, Tokentax) and DeFi products (Dharma, Argent, Linen, Donut).

Summary

Compound protocol and COMP are the DeFi darlings at the moment. The protocol consistently finds use in new applications and creates value, and the Compound token is hot with a new kind of crypto investors who seek to capitalize on risk in ways never seen before. Many DeFi projects follow suit, but Compound has already made a name for itself in this sphere.

If you like learning about all things crypto and blockchain, give us a follow on social media of your choice — we’re on Twitter, Facebook, Reddit and Telegram. Our team regularly posts educational content, news and price predictions on our blog and puts up fun and insightful updates for everyone to enjoy.


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