Yearn.finance’s native governance token YFI is the pioneer in overcoming BTC price as per todays. Its’ price made $13,444 based on Binance information. Such growth has been prompted by the demand for Decentralized Finance, or DeFi.
The treatment towards YFI’s vertical rally since early August keeps being controversial. Some people think that YFI is primed for a pullback. Others forecast bigger growth potential over the longer term.
The 4-hour chart of yearn.finance (YFI). Taken from TradingView.com
About YFI and reasons of its growth
Yearn.finance stands for a DeFi protocol, settled in July by developer Andre Cronje. It is the first protocol on Ethereum that hands out token holders the authority of network control.
Blockchain analytics company IntoTheBlock mentioned the following`:
“Just a month ago, the yearn.finance token was trading around the $1000 mark. #YFI is up more than 10x in one month, climbing to $10,551.25 yEarn Finance is the first project on Ethereum, whose governance is entirely in the hands of token holders.”
Cryptocurrency researcher Hasu says that yearn.finance is a platform that permitting users to employ various investment strategies.
“If you’re not familiar with Yearn, you can think of it as a smart bank account that automatically allocates your assets to different low-risk investment strategies that execute on the Ethereum blockchain.”
The price of YFI, the primary token of the protocol, grows proportionally to the growth of the total value locked in yearn.finance . Based on Defipulse, yearn.finance has locked more than $670 million worth of capital
The higher price ofYFI might be with low supply
The price of YFI is high because of its unique monetary supply in comparison to other tokens.
Despite the price of YFI is greater than $12,000, its market capitalization is less than $400 million.
That is why crypto startup investor Ian Lee explains that YFI greater price is has psychological background
“YFI ‘flipping’ BTC price is arbitrary & more psychologically than practically important. What is important is what yearn.finance is doing & Andre Cronje is building in DeFi.”
What is next development step?
Some DeFi space experts think that YFI will have growth potential due to the completion of its’ supply. Based on CoinMarketCap info 29,962 are in circulation while the total supply is 30,000
Moreover, Yearn.finance has also presented new development called yinsure.finance to operate at the DeFi insurance market.