Compound (COMP) Crypto Price Prediction: Five-Year Outlook

The Compound (COMP) crypto price prediction is in focus as crypto rebounds and DeFi products see increase popularity. What can investors expect?

Ruchi Gupta - Author

Jun. 29 2021, Published 9:42 a.m. ET

Compound crypto logo
Source: Compound Labs Twitter

As cryptocurrencies rebound, Compound (COMP) crypto is getting plenty of attention from investors. Its price has jumped more than 20 percent in the last 24 hours to trade above $320. However, the price still remains sharply below its all-time high of $911. What’s Compound crypto's price prediction and is it a good investment?

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Investors are rushing to take advantage of the recent pullback in crypto prices. A variety of factors are motivating crypto investments right now. For example, many investors have been inspired by Cathie Wood’s plans to set up a Bitcoin ETF and Mexican billionaire Ricardo Salinas Pliego's encouragement to buy Bitcoin now.

Bitcoin has been a huge success for investors. Recently, Bitcoin's lifetime returns on investment rose as much as 80,000,000 percent. Investors who missed a chance to get into Bitcoin early are looking for the next cryptocurrency that could explode. Many investors see bright prospects in Compound crypto.

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compound crypto
Source: Unsplash

What is Compound crypto?

Compound is a DeFi project that operates a crypto lending and borrowing platform. For investors, it allows them to earn interest on their idle cryptocurrencies by providing funds for others to borrow. For borrowers, the platform enables them to obtain loans outside the traditional banking framework. COMP token is the project’s official cryptocurrency.

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How many COMP coins are there?

About 5.3 million COMP coins are circulating now and the maximum supply is fixed at 10 million. The other cryptocurrencies with a capped coin supply are Bitcoin and Yearn Finance. Many investors are attracted to crypto with fixed supply because they come with in-built protection against inflation. Other cryptos, like Binance Coin and Baby Doge, address the inflation issue through token burn.

At the current supply and circulating volume, Compound crypto carries a market cap of $1.7 billion. If all of the tokens were out, the crypto’s fully diluted market cap would be $3.2 billion.

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Compound crypto (COMP) price prediction

Compound crypto is among the cryptocurrencies recovering quickly from the recent sell-off. Where will it be in five years? According to WalletInvestor, COMP token will reach $718 a year from now, which implies a 125 percent upside potential. In five years, Compound crypto will reach $2,555, which suggests a 700 percent upside potential.

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At Digital Coin Price, they see COMP token closing 2021 at $433, which implies a 36 percent upside. They expect the altcoin to continue gaining in the coming years and hit $800 in 2023 and $1,000 in 2025.

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When will Compound crypto reach $1,000?

Compound crypto investors are looking at a $1,000 price as the immediate milestone. The current Compound crypto price predictions point to it reaching that milestone in three to five years from now, but it could get there sooner.

To reach $1,000, COMP token will need to rise 215 percent over the current price. The altcoin has been climbing at an average monthly rate of 20 percent in 2021. If it maintains that momentum, it could reach $1,000 by the end of 2021.

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compound crypto outlook
Source: Compound Labs Facebook

Is Compound crypto a good investment?

Longtime COMP token investors have something to show for it. Even after the recent pullback, the crypto still boasts a return on investment of 220 percent since it launched. In June 2020, COMP token plunged to what still stands as its all-time low. Investors who took faith and bought that dip have seen their money grow more than fivefold.

If you’ve been waiting for a chance to buy the dip in Compound crypto, now might be your moment. At the current price, COMP token trades more than 60 percent below its all-time high of $911 attained in May 2021. DeFi products are growing in popularity as people seek financial services outside the constraints of the legacy banking system.


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