фото показано с : zycrypto.com

The price of YFI recently spiked to its all-time high of $16,398.53 making it the preeminent altcoin to surpass the price of Bitcoin, in an interesting case which experts have termed as arbitrary and psychological.

The yearn.finance’s YFI token spike has been fueled by the rising demand for DeFi platforms that offer liquidity mining with huge interest gains in a trend that’s becoming a popular aspect of decentralized finance.  

As one of the three tokens from which Yam Finance borrowed its concept, yearn.finance’s quick rise started earlier in August with much speculation that the price can go either way.

YFI is a new DeFi protocol that was launched by developer Andre Cronje in July as the first non-pre mined DeFi platform on Ethereum, which gives stakeholders total power to govern the network.

It has since grown into an ecosystem of protocols that aim to maximize annual percentage yields (APY) for its stakeholders and play a significant role in expanding the yield farming frenzy that started with Compound (COMP).

The price of YFI has been steadily rising fueled by three main factors: its new yInsure Finance feature, hype from industry executives, and the explosive growth that’s currently going on in the DeFi sector.

Currently, the Total Value Locked (TVL) in yearn.finance stands at $779 million, according to data from Defipulse. One of its most unique features that are also responsible for its high price is a monetary supply capped at only 30,000 YFI which is significantly lower compared to many other crypto assets.

This makes it possible for YFI to go as high as $12,000 even with a market cap of about $400 million, ranking at 45th position in the global cryptocurrency market. Out of the 30,000 supply cap, data from CoinMarketCap indicates that there are 29,962 circulating YFI tokens, making its potential growth high due to its almost fully minted supply.

But According to crypto investor Ian Lee, YFI’s capacity to surpass bitcoin’s price while having a much lower market capital, therefore, is of debatable significance.

$YFI “flipping” $BTC price is arbitrary & more psychologically than practically important. What is important is what @iearnfinance is doing &@AndreCronjeTech is building in DeFi.”

However, if yearn.finance was to reach a market cap similar to other top DeFi platforms like Maker, Compound, or Aave, its small supply could push YFI’s price to $30,000. In short, there is little comparison between Bitcoin and YFI since Bitcoin’s market cap is 568 times bigger.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

232 +