Cryptocurrency Price Prediction

Compound Price Prediction: Can COMP Price Surge To $500 In 2022?

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Apr 28, 2022

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 Compound is one of the popular cryptocurrencies built on the Ethereum blockchain. It is a Decentralized Finance protocol that enables community governance of Compound protocol. Compound (COMP) was the first crypto platform to introduce yield farming.

The price of COMP had experienced a dramatic rally in 2021 and has attracted many strong hands. Marketers in the business are still keen on investing in COMP and are curious about its price predictions. Are you considering this altcoin for your investment portfolio? Look no further, as this write-up will get all your doubts sorted!

Overview

CryptocurrencyCompound
TokenCOMP
Price$ 66.4000
Market cap$ 458,164,272.0000
Circulating Supply 6,856,085.7633
Trading Volume $ 46,771,880.0000
All time high$ 910.5400 May 12, 2021
All time low$ 54.9100 May 12, 2022

Compound (COMP) Price Prediction For 2022

Potential LowAverage PricePotential High
$292.2$371.5$452.5

  Compound had made its way to the year 2022, with a price tag of $198.9. While it did witness a leg-up with the start of the year, as the price brushed $243.8, by January 5th. The spike was short-lived, as the digital asset slipped down to its support at $122.4, by the 22nd of January. After consolidating along the support until the 4th of February. A leg-up pushed the price to $150, by the 8th of February. 

However, turmoil in the business pushed the price down to $99 by the 14th of March. Thereafter, an uptrend led to the quarterly closure at $164.2

Compound’s (COMP) Price Prediction For Q2

The price of Compound has slid back to $124.1, after a euphoric close to the first quarter. If the digital asset sees an increase in buying and selling pressures, it would re-establish its presence at $148.4. A surge from there could take the price to $172.2

On the flip side, a fall in volumes and continuity in bearish trends could take the price down to $116.1. That said, a balance in trade pressures will take the price to $149.7, by the end of the quarter. 

COMP Forecast For Q3

 If the altcoin carries forward a bullish stance from the second quarter, further seeking impetus from developmental and community building initiatives. The price of the COMP could surge to a maximum of $290.6. Whilst a linear price projection could settle the price at $226.5. Ebbing stance of the protocol and negative criticism could slash the price down to $175.6

Compound’s Prediction For Q4

 Increasing traffic in Compound’s Treasury, and major announcements of collaborations and adoptions, will turn imperative for the network. Moreover, if the protocol gathers positive social sentiments, COMP’s price could close the annual trade at its potential high of $452.5

Conversely, the protocol failing to adhere to its expectations or a possible crash in the market could slump the price down to $292.2. That said, constrained by regular trade practices, the average price could settle at $371.5

COMP Price Forecast For 2023

If a number of projects seek the functionality of Compound, and if the industry sees Defis spreading the wings again. COMP’s price could reflect positive signs, wherefore, the altcoin could surge as high as $969.7, by the end of 2023. On the flip side, emerging potent rivals and stiffer competition could land the price at $487.9.

Price Prediction For The Next 5 Years

Over the next five years, if Compound concentrates on several developments and manages to increase its userbase. The digital coin could climb higher on the market charts. Moreover, if the factors in the industry play in favour of the cryptocurrency. The road to $2934.5, would be paved with petals. However, regulatory norms and restrictions across the globe could shrink the price to $1121.5

YearPotential LowPotential High
2023$487.9$969.7
Next 5 Years$1121.5$2934.5

What Does The Market Say?

Digital Coin Price

  According to Digital Coin Price, COMP’s price is expected to touch a maximum of $175.03 by the end of 2022. The analysts from the firm have set the minimum and average targets for the year at $152.25 and $164.78. The forecast also includes the targets for 2023 and 2025. The company expects COMP’s price to surge to a maximum of $199.18, by the end of 2023. And a maximum of $270.17 by the end of 2025. 

Trading Beasts

Trading Beasts has revised its prediction for Compound. It now expects the altcoin to close 2022, with a maximum trading price of $118.58. The analysts believe a trend reversal could drag the price down to $80.64. And constrained by a linear price projection, COMP’s price could settle at $94.87. 

The firm has also made forecasts for the long term. It expects the price to surge as high as $209.96 by the end of 2023. And $324.035 by the end of 2025.

Long Forecast

As per the prediction of Long Forecast, the Compound could trade at its potential high of $83 by the end of 2022. The firm believes that carrying forward a similar momentum. The price of COMP could surge to its maximum of $157 by the end of 2025. 

Click here to read our price prediction for Neo (NEO)!

What Is Compound (COMP)?

  Learning from the makers, Compound is an algorithmic autonomous interest rate project, which is built for developers. The protocol allows developers to access a plethora of open financial applications. Compound is open-source and maintained by the community. 

To put things into perspective, Compound is a Defi lending protocol, that allows users to earn interest on their cryptocurrencies. By depositing these into one of the many pools, supported by the platform. The native asset of the platform is COMP, which is an ERC-20 token. That allows its holders to delegate voting rights to an address of their choice. Be it the owner’s own wallet, other user application, or a Defi expert.  

Fundamental Analysis

  The Compound was founded in the year 2017, by Robert Leshner and Geoffrey Hayes. Both Robert and Geoffrey had previously worked in higher positions at Postmates – an online food delivery service provider. Whilst Hayes is the CTO of Compund Labs Inc, Leshner is currently serving as the CEO of the firm. 

The protocol enables anyone to rent and lend tokens through a decentralized market. While the lenders earn income in the crypto they lend, the borrowers pay interest for the borrowed sum. The network is handled automatically by “smart contracts”, which process to mint cTokens. After Ethereum and ERC-20 tokens are deposited. The process also enables Compound users to redeem their stake using their cTokens. 

The network employs collateralization for all assets and also ensures that each pool is over-collateralized, at all times. If the factor falls any lower, the assets are sold to liquidators at a discounted price. Talking about Compound’s native asset COMP, the total supply of the crypto asset is slabbed at 10 million COMP. Out of which, 6.7 million are currently in circulation. 

Our Comp Predictions

Hodlers, marketers, and savvies are quite optimistic about Compound. If the network possesses major partnerships and adoptions in the near future. Then the price of COMP could surge to a maximum of $450 by the end of 2022. That said if it loses out on steam amidst diverging interest of marketers. The price could stumble down to $300.  

Historical Market Sentiments

2020

With a trading price of $80.13 Compound made a debut in the crypto world on 17 June 2020 according to Coinmarketcap. The price drastically poured to $301 as it acquired the attention of the market. It also recorded a new All-Time-High by reaching $381.89.

 Later, the price consistently started to decline and dropped to $166.11 by early July and further to $122.97 by early August as the massive supply pressure. Compound reached its resistance level of $230.21 by mid-August and $257.72 by the start of September.

 However, the price again started to decline as bears held in pulling the prices. The digital asset did not perform well in the third quarter, as the continuation of the bearish attack declined the price to $83.65 in November. Further, the price started to rise and hit $132.03, amidst the expansion of Bitcoin’s price rally. COMP gained $150.53 in December to end the year’s trade.

2021

  The year 2021 was a revolutionary year for Compound and its price action on the market charts. COMP had entered the year with a trading price of $142. An inclining bullish surge took the price to $535.6, by the 5th of February. Following this, a downtrend slumped the price to $398.1, by the end of the month. 

While the altcoin had posed a single-day spike of 20% on the first day of March. Depleting volumes took the price down to $344.2, by the 24th of March. An uptrend, which started on the 29th of March, helped close the quarter at $403.5. The uptrend pushed the price to its ATH of $911.20, by the 12th of May. But a crash in the business led to a steep fall of 175% to $337.7, by the 3rd of May. 

Continued bearish trends took the price to $219.2 by the 25th of June. But a dramatic rebound helped it climb back to $532.8 by the 6th of July. As traders extracted their profits at $532.8, COMP’s price slipped back to $338. After a brief period of accumulation until the 3rd of August, a leg-up pushed the price to $502.6.

After ranging sideways until the 7th of September, a prolonged downtrend closed the third quarter at $325.9. Post its consolidation at the levels, the altcoin attempted a climb to $399.3. Failing which the altcoin stumbled down to close the annual trade at $200. 

To read our price prediction of Chiliz (CHZ) click here!

FAQ

Q: How does COMP protocol work?

A: Compound entitles lenders and borrowers to provide and take out loans by locking their assets into the protocol. 

Q: What are cTokens?

A: When you supply assets to the Compound protocol, your balance is represented as a cToken. Which can be transferred, traded, or programmed by developers to create new experiences.

Q: Who controls compound protocol?

A: Compound is managed by a decentralized community of COMP token-holders and their delegates, who propose and vote on upgrades to the protocol.

Q: How Can Users Get Involved In Compound Governance?

A: The community has created a Compound Forum to discuss governance proposals, and share ideas.

Q: Where can I trade COMP?

A: COMP is available for trade across leading cryptocurrency exchange platforms such as Coinbase Pro, Huobi Global, and Binance, amongst others.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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