Compound

    Compoundcomp#127

    By Twin · CoinHours Editorial · Coin profile maintained by CoinHours Editorial · Market data refreshes every 60s

    $20.31

    +0.65% (24h)

    7d Change

    -14.76%

    30d Change

    -17.84%

    24h High

    $0.000000

    24h Low

    $0.000000

    Market Cap$203.10M
    24h Volume$15.57M
    Circulating Supply10.0M COMP
    All-Time High$0.000000
    ATH Change+0.00%

    Price Chart

    Trade Compound

    Open an account on Binance to start trading

    Open Account

    Affiliate disclosure: CoinHours may earn a commission if you sign up via this link, at no extra cost to you.

    About Compound

    Compound is an algorithmic money market protocol on Ethereum that enables users to supply and borrow cryptocurrencies with interest rates determined by supply and demand dynamics. COMP tokens grant governance rights over protocol parameters including supported assets, collateral factors, and interest rate models. The protocol pioneered the liquidity mining concept in DeFi during 2020. Compound remains one of the established lending protocols despite increased competition from newer platforms.

    Primary use case: Decentralized lending protocol with algorithmic interest rates governed by COMP token holders.

    Understanding Compound Price Data

    The Compound price shown above is a volume-weighted average across major spot exchanges, sourced from CoinGecko and refreshed continuously throughout the trading day. Cryptocurrency markets trade twenty-four hours a day, seven days a week — there is no opening or closing bell — so the 24-hour change figure is a rolling window measured against the price exactly one day prior, not against a fixed daily close. The 7-day and 30-day percentage moves use the same rolling-window methodology, which means the figures shift continuously rather than resetting at midnight.

    Market capitalisation for Compound is calculated by multiplying the current price by the circulating supply — the number of COMP units currently in public hands and not locked, burned, or reserved by the protocol. This differs from total supply (all units that have ever been created) and max supply (the protocol-defined cap, where one exists). For assets with significant locked or vesting allocations, fully diluted valuation can be a more useful long-term measure than market cap alone. The 24-hour trading volume figure aggregates spot trading across reporting exchanges and excludes derivatives and over-the-counter activity, which can be substantially larger for major assets.

    All-time high (ATH) figures reflect the peak USD price ever recorded for Compound on a major exchange. The ATH change percentage shows how far the current price sits below — or above — that peak, and is one of several inputs the CoinHours Market Cycle Indicator uses when assessing where the broader market sits in its four-year halving cycle. For longer-term investors, ATH drawdown combined with 200-week moving average position and the Fear & Greed Index gives a clearer cycle picture than any single metric in isolation.

    Compound for Australian Investors

    In Australia, the Australian Taxation Office (ATO) treats Compound and other cryptocurrencies as capital gains tax (CGT) assets rather than as currency. Every disposal — selling for AUD, swapping for another crypto, spending on goods or services, or gifting — is a CGT event that must be reported in your tax return. Holding COMP for more than twelve months before disposing of it qualifies you for the 50% individual CGT discount, which is one of the most significant tax planning levers for long-term holders. See the crypto tax encyclopedia entry for a full breakdown of ATO record-keeping requirements, cost-base calculation methods, and the tax treatment of staking rewards, airdrops, and DeFi income.

    Australian investors typically buy Compound through a registered exchange that complies with AUSTRAC anti-money-laundering requirements. Once acquired, holdings can be left on the exchange (counterparty risk), moved to a software wallet (convenience with online attack surface), or transferred to a hardware wallet for cold-storage self-custody (highest security, least convenient). The CoinHours security guide walks through the trade-offs in detail, including seed-phrase storage, multi-signature setups, and inheritance planning. For background on the underlying technology, the Crypto Encyclopedia covers blockchain fundamentals, consensus mechanisms, and the Compound protocol in plain English.

    Compound FAQ

    What is Compound and how does it work?

    Compound is a decentralised lending protocol on Ethereum that enables users to supply cryptocurrencies to earn interest or borrow against collateral. Interest rates are determined algorithmically based on supply and demand within each asset pool, with users receiving cTokens representing their deposits that automatically accrue interest over time.

    What is the COMP token used for?

    COMP tokens provide governance rights over the Compound protocol, allowing holders to propose and vote on changes to supported assets, collateral factors, and interest rate models. COMP tokens are distributed to protocol users through liquidity mining, rewarding both suppliers and borrowers with governance participation rights.

    How are Compound interest rates determined?

    Interest rates on Compound adjust automatically based on utilisation rates within each asset pool. Higher borrowing demand increases interest rates to attract more suppliers, whilst lower demand reduces rates. This algorithmic approach operates through smart contracts without centralised control or intervention.

    What are the main risks of using Compound?

    Key risks include smart contract vulnerabilities that could lead to fund loss, liquidation risk for borrowers if collateral values fall, interest rate volatility affecting returns, and governance risks from token holder voting decisions. Additionally, regulatory uncertainty around DeFi protocols may impact future operations.

    How does Compound affect Australian tax obligations?

    Australian investors must report COMP token transactions to the ATO, with gains potentially subject to capital gains tax or income tax depending on circumstances. Governance rewards and interest earned may also constitute taxable income. Investors should maintain detailed transaction records and consider seeking professional tax advice.

    Can I use Compound from Australia legally?

    Compound operates as a decentralised protocol accessible globally, though Australian investors should use AUSTRAC-compliant exchanges for purchasing COMP tokens. The protocol itself doesn't restrict access based on location, but investors remain responsible for complying with local tax obligations and regulations.

    Frequently Asked Questions

    How often is the Compound price updated?

    CoinHours pulls live COMP pricing from CoinGecko, which aggregates trades across major exchanges. The page refreshes the displayed figures every few minutes; the underlying market data updates continuously and may move significantly between refreshes during volatile sessions.

    Why does the Compound price differ between exchanges?

    Each exchange runs its own order book, so prices drift slightly based on local supply and demand, regional liquidity, and pair availability. The figure shown here is a weighted average designed to represent the broad market price rather than any single venue. Arbitrage typically keeps the differences small for major assets but can widen during fast moves or on smaller exchanges.

    Is buying Compound legal in Australia?

    Yes. Cryptocurrency is legal to buy, hold, and trade in Australia. Exchanges operating in Australia must register with AUSTRAC and comply with anti-money-laundering and counter-terrorism financing rules. The ATO treats crypto as property for tax purposes — see the Australian investors section above for tax implications.

    What is market cap and why does it matter?

    Market capitalisation equals current price multiplied by circulating supply and gives a rough measure of an asset's total value in public hands. It is a more meaningful comparison metric than price alone because two coins with identical prices can have radically different supplies. Market cap rank is one input investors use when assessing relative size, but it does not account for locked tokens, future emissions, or actual on-chain liquidity.

    Should I store Compound on an exchange or in a wallet?

    Exchange custody is convenient but exposes you to counterparty risk — exchange failures and hacks have wiped out customer balances historically. For amounts material to your finances, a hardware wallet under your own control is the standard recommendation. Read the security guide for a full comparison of custody options and seed-phrase best practices.

    Information on this page is general in nature and does not constitute financial, investment, or tax advice. Cryptocurrency prices are volatile and you can lose your entire investment. Consult a qualified Australian financial adviser and registered tax agent before making investment decisions.