Decentralized finance app Compound (CCC:COMP-USD) is coming up on its first birthday soon. Those who purchased Compound’s cTokens on launch will know that the platform wasted no time cooking up big gains. In fact, since launching in June of last year, COMP has gained over 500%. That’s a very good birthday present for investors. With the crypto reaching new heights today, speculators are theorizing around Compound (COMP) price predictions.
Compound is an app built on the Ethereum (CCC:ETH-USD) platform. The invention of Compound was a response to a lack of utility in traditional bank interest-building. When someone puts their money into a savings account, it compounds interest. However, that money is locked into place whilst doing so; you can’t pull that money out to do other things while it builds interest. But with decentralized Compound, you can do exactly that with your crypto.
Compound allows users to put any ERC20 tokens — a certain token class on the Ethereum network — into a Compound depository. The tokens get locked in, and they build interest according to that specific token’s demand on the global market. But, differently from traditional banks, you can take your tokens out in a way. Users can withdraw cTokens, a Compound version of whatever token is inserted. These tokens can be used on other DeFi apps, allowing users to gather multiple DeFi benefits using the same set of tokens. Another important feature is the ability to borrow crypto. Compound has over $15 billion in crypto assets stored for lending, making it the DApp with the highest lending value in the world.
Compound (COMP) Price Predictions
Compound is a trendy asset for crypto investors right now. The token recently broached the $600 mark, and is currently trading at $622.64. Let’s look at some Compound (COMP) Price Predictions as the DeFi platform continues its bullish run:
- The Economy Forecast Agency predicts COMP to continue upward past the $1,000 mark before the end of the year.
- DigitalCoinPrice predicts a similar trend, but values the token slightly lower, at $919.
- Gov Capital is forecasting a net growth, but less than other analysts. The site predicts the token will have a $806 price in a year.
- WalletInvestor is another COMP bull, predicting a price of $918 in a year.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.