Most cryptocurrencies have been facing a downturn since the beginning of 2022. The list includes leading coins like bitcoin and ethereum, along with many other tokens.
Compound is also experiencing a decline in value for many days. However, some people believe it will rise in price and perform better.
Could that be a reality?
Let’s explore more in our Compound price analysis for 2022.
What is Compound?
Compound is a platform that lets you earn interest on crypto coins. Users can deposit their tokens into several pools of funds that lend money to borrowers.
In return, users can earn back interests from people who borrow money.
Best of all, Compound supports a range of crypto coins apart from bitcoin. Therefore, you can store your funds without hassles, no matter the cryptocurrency you own.
Additionally, Compound is autonomous and doesn’t require an intermediary to work.
What is the COMP Token?
COMP is the governance token of the Compound platform. People who own COMP tokens can vote to have their say in the governance of the platform.
Interestingly, COMP had a great start as soon as it was launched. It became the number one platform in the decentralized finance rankings.
Decentralized finance works just like Compound without an intermediary. It is being called the future of the financial industry.
COMP Price Analysis for 2022
COMP is currently trading at $123, as per CoinGecko. Let’s take a look at its 2021 performance before we predict trends for the current year.
COMP was priced at on the first day of January in 2021. By May 12, 2021, the token surged 500% in value, reaching a price of $911.20. However, COMP started declining afterwards and stood at $$204 in July; the value increased in the coming days and climbed to $323 by November. At the end of the year, COMP was selling at around $200.
So, what does 2022 hold for the token?
As per Gov Capital, COMP could climb to $360 by March. In September, the token could reach a price of $499. As 2022 ends, COMP could be priced at $324. Gov Capital reckons COMP’s maximum price will be $372, while the lowest could be $275.
Wallet Investor, however, considers COMP to be a “bad” choice for long-term investment. It predicts the price of the token to fall to $69 in May. By September, COMP could drop down to $11. And could still be selling at $11 when the year ends. Wallet Investor predicts the highest value COMP could attain is $16, while the minimum could be $5.54.
Now, let’s take a look at what Digitalcoin has to say. It predicts COMP to reach a price of $172 by May. By the end of September, COMP could maintain a similar price of $172.51. In December 2022, the token could climb to $159, beginning 2023 at a price of $218.
As we can see, there are mixed predictions about COMP. However, the platform has gained a lot of traction since it was launched. Fortunately, Compound has locked in $8.2 billion in crypto funds. Therefore, a lot of users are counting on it to earn rewards and more people can borrow from the platform, impacting the prices positively whilst Compound aims for large-scale adoption.
Compound seems to be an interesting crypto project. It has accumulated countless users and attracted the interest of businesses. However, the price of COMP tokens can change at any time following the trends of other crypto coins. You should consider the volatility of investing in crypto and get familiar with all risks. Then you can make a wise decision of where to put your money.