Your Compound Crypto Review—2024

€ 48.6589

-4.0605479872
Last updated 13:06:03 UTC
Market Cap
€ 406.71 Million
Fully Diluted Market Cap
€ 406.71 Million
Volume
€ 18.58 Million
Circulating Supply
8.36 Million COMP

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Is it a wonder that crypto revolutionized the world and made a name for blockchain? 

What the Compound Network Can do for You

Do you already know if compound is a good investment?

In 2023, a demand for blockchain kept crypto values on a steady-price floor. With market evidence of crypto’s demand, the funding behind autonomy revealed the prospects of having a blockchain lender to exist. Decentralized lending and borrowing is the focus here.  

With a model an entire world now follows, Compound became a leader in the decentralized finance industry (DeFi) on a single principle. The demand for lending and borrowing would create such a unique niche that a new sector of blockchain would arise from it. Built on Ethereum, the Compound architecture has a global connection of investors and users already.

What is Compound?

Is Compound a Good Investment

What Is Compound—A Simple Lesson on Borrowing and Lending

Compound is an exchange but one that specializes in peer lending. Be you a bank or single person of wealth, Compound either lends you money or uses your locked funds for other loans. 

In line with the logic of Web3.0, Compound’s value lets you deposit money into financial pools that fund public services on a blockchain. Though the purpose of Compound may seem biased toward the lender, it provides, also, a platform to borrow crypto from. You can borrow up to half of your collateral. Programmed atop Ethereum, COMP is the native token for the peer exchange. This review helps you to decide if Compound is a good investment.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

You can find Compound priced in USD and Compound charts to trade from.

Compound History

Compound Labs, the U.S. developer of the Compound crypto, was founded in August 2017 by Geoffrey Hayes and Robert Leshner. These Compound founders would later release their agency’s whitepaper in February of 2019. Among the dual’s team were Torrey Atcitty and Calvin Liu.  

In stunning fashion, the Compound crypto raised $8.2 million and, a few months later, raised $25 million in 2019. The developer is supported by its active projects and a network of top cryptologists.

Once these creators converted Compound’s price to USD, the Compound charts were accesible on a number of networks.

Why was Compound Created?

Compound’s price in USD provides blockchain services to the lending and borrowing industries. 

It was among the pioneers to enter an untouched market within the social integration of blockchain. Truly understanding Compound’s value calls for a bit of reflection and history. Blockchain, which was revolutionized by bitcoin, was born with the intent or promise of autonomy. The central banks involved in fiat currencies don’t play a role in the digital ones. 

Now borrowing and lending establish two of the biggest industries on this planet. These two are largely monitored by central banks and are even guided by the same. Now apply these same principles of lending and borrowing to an automated blockchain. Compound’s future is truly immeasurable.

The demand for borrowing could sustain an entire blockchain sector that’s dedicated to debt alone. The gross debt of the US is $33 trillion for 2023. Now just imagine that amount of debt being serviced through a blockchain that collects, issues and tracks payments. This would call for a blockchain that also tracks interest rates and identifies legal collateral.    

The value of Compound became the measuring stick of lending and borrowing in blockchain. 

It not only made these services autonomous, but the COMP token was programmed to manage interest rates automatically. The rise and fall of interests, through this architecture, is based on supply and demand alongside automation. No single entity or person of power can dictate the entire trajectory of rates, but they can vote based on their COMP shares. 

Compound is a flexible marketplace because it provides a source code for DeFi agencies to use. Smart contracts make these extensions possible. Compound, through its native token, can extend its blockchain to infinite developers. As a smart-contract protocol, Compound’s future anchores itself as a staple in DeFi by allowing entrepreneurs to build atop it.  

At heart, it is still a simple exchange where you can convert different crypto. Compound’s blockchain offers spot prices for various tokens already built on Ethereum. These coins alongside data from Compound charts.

How Does the Compound Crypto Work?

Tracking the Spot Price of Compound

The Compound blockchain functions by connecting lenders to borrowers. It uses a unique form for its Compound staking, which funds its loans. The chain is, itself, a borrower and uses its investment pool for chain transactions. For all intended purposes, Compound could arguably be called the first autonomous bank to rise out of blockchain. 

The network also works as a standard crypto exchange but for a limited choice of Compound crypto. You can deposit your “locked” holdings in a set number of currencies. The sum you lock in dictates how much your tokens’ APR rewards you. The network’s native token is an ERC-20 via Ethereum. These factors could make Compound a good investment:

Its Collateral

To function effectively, Compound’s future needs a pool of liquidity as collateral for its loans. Money must be available for each loan, and this comes from Compound staking. During its public fundraising, Compound collected enough capital to launch on. Now, the system relies on deposits from its users as a way of funding future transactions or expenses.

The Code

Compound staking works on a true blockchain, and its benefits are autonomy and decentralization. Atop a platform of smart contracts, this blockchain encrypts its transactions and has securely operated since 2017. What makes Compound’s prediction so unique is its lending and accounting in DLT protocols. 

The Peers

Peer-to-peer lending, though a fair description, is too simple of a term to describe the community’s governance. Instead of empowering governments or single-wealthy peers, Compound staking is a philosophy that enables everyone to lend. In its particular system, the interest rates are tied to liquidity—the amount of platform users and investors there are.  

The Fees

Borrowers are the main source of fees for the Compound protocol, for they provide the income to pay for the site’s transactions. You will also encounter fees if you buy COMP tokens from a different exchange than the actual network. The rate for borrowing money is tied to the token type you borrowed and the amount you requested. 

The Votes

The Compound crypto is a type called a governance token. It means that the amount of native tokens a person owns dictates how much their vote counts. Though most holders can create “autonomous proposals,” you need at least 25,000 COMP to create proposals tied to governance of the Compound blockchain. This is roughly $987,250 USD in buying power.  

Where to buy COMP?

Earn Voting Rights on Compound

Looking for a Compound stock price?

You’ll need to buy COMP tokens if you feel Compound is a good investment. The COMP token is now available on a hundred-crypto exchanges, but you can also become a network user to obtain tokens. Borrowing and lending on Compound give you access to and a store of COMP or cTokens. You, likewise, have the option of going directly to a crypto exchange. 

Through the token’s architecture, you’ll benefit by lending it or when COMP rises in value. You can find Compound charts and USD prices for COMP at KuCoin, Coinbase Exchange or Binance

Let’s discover how you can wage on your Compound forecasts and predictions:

Binance

Where to Find Compound

Opening an account through Binance is a strategic choice among exchanges. The liquidity of the exchange is more secure than any other platform today. You’ll need to verify your account with your name, number, address and email. Only once your identity is verified do you have access to deposit funds and swap various crypto coins.

Binance

  • Low fees
  • One of the largest crypto exchanges
  • Fee discount for using native BNB

The verification establishes your legality and points of reference for future identity checks. 

Buying Into Compound’s Future on Binance

Discovering More of Compound

Start with funding your Binance account with a deposit in fiat or cryptocurrency. Go to the “Buy Crypto” or “Trade” tab and search for COMP. Adjust the number of tokens you want to exchange until it fits the cost you’re prepared to pay. If buying COMP, the fees come from the exchange you acquire the tokens from. Binance charges a 0.10 percent fee for buying crypto.

These fees should suggest that it’s best to find the price of Compound below its norm.

Binance

  • Low fees
  • One of the largest crypto exchanges
  • Fee discount for using native BNB

Compound Fear and Greed Index

Updated: 13 June 2024

Now: 46 Fear

Now: 46 Fear

Yesterday: 46 Fear

Last Week: 44 Fear

Is Compound Really a Good Investment?

Compound’s place in the DeFi industry is undeniable. We can’t say if Compound will go up, or will Compound recover, but we DO know that Compound’s forecast is leading its industry. Most investors need to consider how they will invest as opposed to if. If you think Compound is a good investment, be sure to do your due diligence.

Only you can decide if Compound is a good investment or how you’ll strategize your Compound forecast.

How well it stands as an investment is reliant on Compound’s blockchain also. Though over 3-billion USD is invested in Compound, the way its tech evolves does matter. For this reason, its first developers built Compound as a smart-contract portal. Its compatibility with developing newer technology gives the blockchain some promise and a reasonable future. 

A final opinion of Compound

Tokize is not responsible for the trading of others. We don’t offer investment advice but simple information about market options. Our understanding of Compound’s future is that it leads all blockchain in the sector of borrowing and lending. It established the rules, solved the key problems and has operated for well over five years as a successful chain.

Being part of the Compound blockchain comes with its perks. Those benefits, however, call for large funding, for the annual rates peak around 3 percent yearly, so consider a hefty account. Compound’s forecast now rests on the outcome within blockchain growth. Converting compound to USD will remain possible if the price of Compound steadies.

Your Compound questions

This DeFi software operates on the Ethereum blockchain and uses smart contracts for autonomy.
In surprising fashion, COMP hit as high as $848.45 in May of 2021.
The COMP token was first introduced in June of 2020 for public trade and system services.