Compound is one of the topmost cryptocurrency that allows users to earn money. It is a Decentralized Finance protocol working on Ethereum blockchain. Compound (COMP) was the first crypto platform to introduce yield farming.
Wondering where the price of Compound (COMP) go?
This guide aims to provide you the brief information regarding the price prediction of 2021 and beyond. This will help you to understand clearly about COMP, whether it is a worthy investment.
Let us start with some basic information.
Table of contents
|Market cap||$ 1,712,431,565.0000|
|Circulating Supply||$ 4,330,639.2044|
|Trading Volume||$ 280,351,891.0000|
|All time high||$ 566.4600 February 12, 2021|
|All time low||$ 61.3200 June 18, 2020|
What is Compound Protocol?
COMP is an Ethereum token that regulates the independent Compound protocol. The protocol enables anyone to rent and lend Ethereum tokens through a decentralized market. Lenders earn income in the crypto they supply to the protocol and borrowers pay interest to borrow it.
Established by the Compound Finance Team, Compound Governance Token (COMP) or (sometimes verbally Compound Coin) is the main application to rehabilitate the council of the Compound Lending Protocol through community governance. Eventually, users of the Compound Lending Platform are given the ability to suggest, debate, and implement changes to Compound — without relying on, or requiring, the central team whatsoever.
COMP is an ERC-20 asset token that runs on the Ethereum Network, much like the Compound Smart Contract itself. In addition to that, COMP allows its owner to delegate voting rights to an address of their choice; be it the owner’s own wallet, another user, an application, or a Defi expert.
Compound Token Technical Analysis
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 to $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. Compound did not perform well in the third quarter as the continuation of the bearish attack and declined to $83.65 in November. Further the price started to rise by hitting $132.03 by the end of November as the expansion of Bitcoin’s price rally. COMP gained $150.53 in December to end the 2020’s trade.
COMP Price Prediction 2021
Compound traded at $152.55 during the start of January.The technicals remain strong for COMP. Compound could concentrate on inbound developments. This might help to attain more user base. By the end of 2021, Compound might trade at $295.
COMP Price Prediction 2022
Compound might initiate the year 2022 with $298. Compound is anticipated to be bullish as its price anticipated to rise. With certain variations, it might trade between $345 and $380 for several months. At the end of 2022, COMP might hit as high as $400.
COMP 5 Years Price Prediction
In 5 years, Compound is anticipated to rise. It might concentrate on several developments and users might increase. It might attain newer heights. It may collaborate with certain projects to improve its protocol. By the end of 5 years, Compound may be traded at the $1000 mark.
COMP Market Prediction
According to DigitalCoinPrice prices are expected to touch around $320 in 2021 and may spike to $700 in 2025.
According to CoinArbitrage, Compound could trade at $192.521 at the end of 2021. In the next three years, Compound could reach the highest price at $1377.74 and $118.978 as the lowest price.
According to TradingBeasts, Compound could trade at $340.530 by the end of 2021 and $737.171 by the end of 2024.
Our COMP Price Prediction
Compound entered the year 2021 with a trading price of 152.55. Marketers are quite optimistic about Compound and the price might likely rise. With certain partnerships to enhance its database may result in reaching new heights. The price may consistently start rising. It may fall if it fails to develop protocol. By the end of 2021, Compound might be exchanged at $310 and $1800 in the future.
Compound entitles lenders and borrowers to provide and take out loans by locking their asset into the protocol. The interest paid and received rates are determined on the basis of demand and supply of each crypto asset and the interest rates are generated by mining every blocks.
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, similar to other Ethereum tokens.
Compound is managed by a decentralized community of COMP token-holders and their delegates, who propose and vote on upgrades to the protocol.
The project has invested considerable effort to create a protocol that they believe is safe and dependable. All contract code and balances are publicly verifiable, and security researchers are eligible for a bug bounty for reporting undiscovered vulnerabilities.
The community has created a Compound Forum to discuss governance proposals, and share ideas.