Compound is a decentralized algorithmic money market protocol running on the Ethereum blockchain that uses lending pools to facilitate loans in a variety of cryptocurrencies. Borrowers can take out collateralized loans, while lenders that make funds available to the lending pools can earn income on their deposits via specially-issued native tokens.
Put simply, Compound allows users to deposit cryptocurrency into lending pools for access by borrowers. Lenders then earn interest on the assets they deposit.
Once a deposit is made, Compound awards a new cryptocurrency called a cToken (which represents the deposit) to the lender. Examples of cTokens include cETH, cBAT and cDAI.
Each cToken can be transferred or traded without restriction, but it is only redeemable for the cryptocurrency initially locked in the protocol. This entire process is automatic and handled by the Compound code, meaning lenders can withdraw deposits at any time.
To incentivize this activity, Compound uses another cryptocurrency native to its service, called COMP. Every time a user interacts with a Compound market (by borrowing, withdrawing or repaying the asset), they are rewarded with additional COMP tokens.
While complex, the model has so far proved adept at attracting users and encouraging other DeFi cryptocurrencies to adopt its model.
Lending tokens on Compound are a great way to have your crypto holdings acquire compounding interest over time. Compound currently hosts 14 pools of different cryptocurrencies like Ethereum, Uniswap and also stablecoins like DAI. Each of these pools has different lending and borrowing interest rates which are the same for everyone independently of how many tokens they supply or borrow. You can hold your position within a pool for as long as you want and freely withdraw your funds as you please.
What you'll learn 👉
Essential tools you need to succeed in crypto
Wallets
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Compound Price Prediction For The Next 90 Days
Following the landmark approvals of Bitcoin ETFs in early 2024, there has been a surge in interest from both retail and institutional investors. This could be a game-changer for crypto. However, the market has just experienced its biggest crash in history. On February 2nd and 3rd of 2025, over $2.3 billion was liquidated, marking the largest market wipeout in recent years. Following this, March was not kind to crypto either. This caused Bitcoin\\\'s price to drop to the $80k range, while Ethereum plunged to around $1.5k. Other major altcoins like DOGE, XRP, and several top projects fell over 40%, creating the highest level of uncertainty in months. Despite the turmoil, ETFs remain live and actively trading, showing continued institutional interest. However, analysts are deeply divided on the market\'s next direction. Some believe the bull run is still intact, while others argue that Bitcoin already topped at $109K in January, signaling the start of a prolonged downtrend. With the regulatory landscape beginning to stabilize and provide clearer guidelines, crypto traders are hopeful that the market will recover. Still, macroeconomic factors such as Trump’s economic tensions with major trade partners are creating additional volatility. Bitcoin ETF approvals in early January last year set a positive tone for the market, but now, the focus has shifted toward whether Bitcoin will reclaim its highs or enter a deeper correction. The BTC halving and ETH ETF approvals are already behind us, and Ripple was fined $125 million by the SEC in a recent ruling. While XRP supporters see this as another step forward, the market remains fragile. The majority of investors, traders, and influencers had hoped for the peak of the bull run to come in mid-2025, driven by ETF approvals, historical post-halving rallies, and typical 4-year cycles. However, the recent crash has thrown these expectations into doubt. Last year’s hottest sectors—memecoins, RWA, and AI projects—must now navigate a more turbulent market environment.
Below is a tabular overview of how will COMP develop in the short-term (for the next 90 days), according to our prediction model:
COMP Price Prediction 2024
Our prediction model sees a temporary switch to a bear market at the beginning of 2023 before we move onto another leg up in Q3 & Q4 of 2023.
Compound Price Prediction 2025 – 2030 – 2040
Our prediction model sees COMP reaching new highs in 2025:
$287.97COMP price in 2030 & 2040 should be a couple of orders of magnitude higher than our 2025 prediction.
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