The answer to the question: 'Can Compound cross the $10,000 price mark anytime soon?’ Will likely to depend on short-term Compound price predictions. As per COMP price forecasts, the price of Compound asset is predicted to reach $10,000 not before 2024.
Compound, one of the most dominant tokens in decentralized finance, has made incredible gains this year, which has many investors wondering if it will reach $10,000 soon. While this could seem like a far-reach given the current prices of COMP around $386, strong market bulls could push COMP to these levels in the long term. The rally towards $10,000 will be attributed to the rapid rate at which decentralized finance is booming.
COMP is the native token for the Compound protocol. It is usually traded under the pair COMP/USD on most exchanges, but other trading pairs are also available, depending on the type of exchange. Furthermore, COMP is among the newest cryptocurrencies in the crypto space, as it was launched on June 15, 2020. This makes it around one year old, and with the growth and popularity it has accomplished within this time, COMP’s prices could easily reach $10,000.
The growth towards $10,000 could also happen soon, given that in just a day of launching, it became a global leader in the DeFi sector and has still maintained this position. On the other hand, Compound Labs has been in this sector since 2017, and this gives it the experience needed to establish a strong footing for COMP in the crypto space.
What’s New in the COMP Rally?
Compound had operated on the Ethereum network for many years before the protocol decided to launch its token on June 15 2020. When it began trading, COMP’s price was around $140, attributed to growing interest in DeFi. The COMP token also attracted many investors, as it is a governance coin that gives voting rights to holders.
The current bull rally of COMP is strong, given that DeFi has boomed and has become a dominant space in the crypto sector. However, a peak in DeFi volumes was witnessed in 2020 when volatility spiked because of market uncertainty created by Covid-19. Hence, the launch of COMP coincided with a major DeFi boom that immediately saw COMP gain endorsement from major players in the sector, including Coinbase, which purchased DeFi governance tokens. Other exchanges that also jumped in to endorse COMP include Binance, FTX and Poloniex.
Currently, DeFi makes a lucrative investment for lenders as it increases the earning avenues for new traders in the sector. Besides, it has gained approval, as it is more cost-efficient and private than the traditional banking system because it eliminates the need for an intermediary during transactions.
The total value locked in the DeFi sector continues to grow by the day and currently sits at around $87.12 billion. Compound takes a giant share in this, with a total value locked of over $11.67 billion. With DeFi expected to go mainstream in the coming years, the bull rally for COMP will create new highs than before.
Don't Miss: Compound Price Prediction
Compound Price Analysis
The price of COMP is trading at around $386, with the 24-hour trading volumes standing at $375,580,524.
COMP experienced one of its best prices during the boom in the first four months of 2021. The coin managed to reach an all-time high of $911 before the May crash happened. The current value is hence less than the coin’s all-time high, showing that if bulls are strong enough at this point, we could see a rally towards new highs beyond $1000.
An analysis of COMP’s prices this year could also help to shed light on how far the token can go in terms of prices. The price action this year has been phenomenal despite market volatility that once in a while plagues the crypto space. At the beginning of the year, COMP was trading at $148. However, a bullish rally saw COMP create new highs, and despite a dip that happened shortly after, the DeFi coin has shown great resilience in recovering.
Since late July, volatility has spiked across the broader market, which has caused the ups and downs in COMP’s price action. During this period, buyers have rallied up support for COMP, which has enabled the DeFi coin to move to new highs. However, the recent market bulls have not been strong enough, so several disruptions have happened. With some analysts stating that the market is in a mid-cycle run, crypto bulls could appear and pick up the trend at this point, which could a COMP rally to $10,000 and beyond.
The current rally towards $10,000 will happen if there is a consistent increase month-on-month. Strong bulls at this point could allow COMP to reach $1000. From this level, the next major resistance will be $1700 and later $2500. If DeFi adoption reaches its peak in the coming years, we could see COMP break past $5000 and $7000 to reach $10,000 by 2025 eventually.
DeFi is one of the leading areas in the cryptocurrency sector, and more people are getting drawn to it because of the alternative financial solutions it offers. The DeFi wave is not expected to stop anytime soon, which means that a rally towards $10,000 will happen if the current momentum remains.
The decentralized finance sector has grown over the years, and while it is currently made up of mainly lending and borrowing services, this could change in the future. The finance sector is comprised of other services such as insurance, savings, and taxes. If these services are encompassed into DeFi, we could see a massive adoption in DeFi tokens such as COMP, which will ignite the bull run towards $10,000.
The $10,000 price is a long-term price prediction that will benefit investors who want to HODL. In as much as it looks like such an uptrend could be far away, it could happen sooner than later if investors decide to rally up support when market bulls are at their strongest or when Compound gains a major endorsement that will reshape the future of DeFi.
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