Reasons behind the rally of the Ethereum based YFI
After prices have picked up, governance is a sign of yearning. The Finance Protocol (YFI) is back in the spotlight. At the time of publication, YFI shares were trading at $10,799, up 50.5 per cent in the past 24 hours. While it has grown significantly over that period, the monthly chart shows an even more impressive rise of 1,265 per cent. YFI based on the etheric, yearning symbol of domination. The Finance Protocol has breached its all-time high and now stands at about $10.800. One analyst predicted that YFI’s upward trend would continue, with prices reaching $21,000.
Originally, YFI was released with a value of $0. Therefore, its rise to the current price is even more impressive. Within the first 24 hours of trading, the token recorded a profit of 2,000%. In the first week, the price even rose by 11,000%. The objective of its launch was to change the governance model of the year.finance protocol to give more participation to the community.
The main reason behind the YFI rally, as
data scientist Alex Svanevik explained, is its low supply. With just 30,000
tokens, there simply aren’t enough tokens to meet market demand. Additionally,
as Svanevik points out, 60% of YFI’s supply is already allocated in staking
If you’re wondering why YFI keeps pumping,
consider this: >60% of total supply is locked in staking pools.
Despite this, developer Dennison Bertram
points out that the low supply of the YFI token makes it an unviable investment
for most users. Bertram noted the following:
I mean there are only 30,000 of them. So I
don’t think it turned too many people into millionaires if any to be honest.
There was almost never enough supply available, and the folks who were able to
“yearn” enough of them, did so via providing millions in liquidity…
According to DeFi Pulse data, the total
value locked (TVL) in the yearn-finance protocol now amounts for $604 million.
This figure represents an all-time high for the platform. At the same time, the
TVL is at an all-time high of $6.37 billion. Ethereum’s DeFi has been growing
steadily since late June this year. So the rise of the YFI token can also be
attributed to the growing popularity of the Ethereum DeFi in general. In its
all-time graph, the surprising growth of the DeFi sector can be seen.
Despite that, the outlook for the token of
the yearn.finance protocol, according to the analyst, remain bullish. Bertram
claims that YFI is the most undervalued protocol in the DeFi market. In that
sense, he expects YFI to be at 21,142 USD in the future.
YFI is the most undervalued protocol in the
history of crypto. If valued like $COMP today: 1 $YFI = $21,142.37. What
protocol will grow TVL with vaults, leveraged stablecoins, and yinsurance? Has
no VCs to dump on you… and is 100% #DeFi?
Author : Reynaldo