Compound is a DeFi protocol that allows users to earn interest on their crypto-assets by depositing them in one of the different pools supported by the platform. When a user deposits tokens in a pool, they receive cTokens in return. These cTokens represent the user’s share in the pool and can be used to redeem the initially deposited crypto-asset at any time. For example, by depositing ETH in a pool, you will receive cETH in return.
Over time, the exchange rate of these cTokens with the underlying asset increases, meaning that more assets can be redeemed than initially deposited — this is how interest is distributed.
On the other hand, borrowers can obtain a secured loan from any Compound pool by depositing a guarantee. The maximum loan-to-value ratio (LTV) varies depending on the collateral asset, but currently ranges from 50 to 75%. The interest rate paid varies based on the asset borrowed, and borrowers may face automatic liquidation if their collateral falls below a certain maintenance threshold
.
Since the launch of the Compound mainnet in September 2018, the platform has experienced rapid growth in popularity, and has recently surpassed 10 billion dollars in total value locked (TVL).
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When will it reach 1 dollar?
Compound will never reach 1 dollar, because its current price is much higher than that figure. At the moment, Compound is worth around 52 dollars, so it would have to lose 98% of its value to fall to 1 dollar, which is extremely unlikely. Even if the cryptocurrency market were to undergo a strong correction, Compound would still have strong demand and utility as a leading DeFi protocol
.
When will it reach 10 dollars?
Even reaching $10 is very unlikely for Compound, because it would require a loss of 80% of its current value. This could only happen in a catastrophic scenario, where the Compound protocol undergoes a serious attack or bug, or where the DeFi sector completely loses investor interest. However, these are very remote assumptions and there are no credible forecasts that indicate that Compound could fall to 10 dollars in
the foreseeable future.
When will it reach 100 dollars?
Reaching $100 is a more realistic goal for Compound, because it would require a 92% increase in its current value. This could come at a time of growth and innovation for the Compound protocol and for the DeFi sector in general. Some optimistic forecasts indicate that Compound could reach 100 dollars by 2025 or 2026, but even these are very speculative and uncertain
.
When will it reach 1000 dollars?
To reach 1000 dollars, Compound should increase its value by about 18 times compared to the current price. This is a very ambitious and difficult goal, which would require exponential and sustained growth over time. At the moment, there are no realistic forecasts that indicate that Compound could reach 1000 dollars in the even remote future
.
Is it considered a good investment?
This is a question I can’t answer, because I’m not a financial advisor and I can’t provide investment advice. The price of Compound depends on many factors, including supply and demand, market conditions, regulations, competition, innovation, security, and investor confidence. Compound is a volatile and risky cryptocurrency, which can experience strong price fluctuations in a short time. Before investing in Compound or any other cryptocurrency, you should do extensive research, evaluate your objectives and risk tolerance, and consult a qualified expert if necessary
.
Price forecasts from 2024 to 2030
Based on the data I found on the web, I created a table that summarizes Compound‘s price forecasts for the coming years, according to various sources. Please note that these are only indicative estimates and do not necessarily reflect the real value of Compound in the
future.
| Anno | Minimum Forecast | Average Forecast | Maximum Forecast |
|---|---|---|---|
| 2024 | $61,814 | $68,165 | $69,516 |
| 2025 | $91,394 | $89,615 | $89,526 |
| 2026 | $99,364 | $97,435 | $97,336 |
| 2027 | $107,334 | $105,255 | $105,146 |
| 2028 | $115,304 | $113,075 | $112,956 |
| 2029 | $123,274 | $120,895 | $120,766 |
| 2030 | $131,244 | $128,715 | $128,576 |
