No doubt about it… The DeFi (decentralized finance) space is growing like there’s no tomorrow. One of the biggest coins within the arena to be expanding lately is known as yearn finance (YFI). Thus far, the coin is up more than 3,500 percent since last month.
YFI Has Surged in Recent Weeks
While everyone wants to make such a big deal out of bitcoin this year – the currency is presently up more than 40 percent since the beginning of 2020 – this is nothing compared with YFI, which has also put the world’s largest cryptocurrency by market cap to shame in another way… By beating its 2017 all-time high.
At the time of writing, YFI has surged from just over $1,000 in July to well over $30,000 per unit. As we all remember, bitcoin was a huge deal about three years ago considering the currency rose into the $20,000 range after trading for only $1,000 roughly 12 months before. Now, YFI is facing similar circumstances, only this time, the coin’s price is about $10,000 higher. In fact, the token nearly reached $40,000 on certain trading platforms before retracing its steps a bit.
YFI is the primary token of a decentralized financial system known as Y Earn. People can use their tokens to either vote for network upgrades or to place cash into Y Earn, which ultimately collects yields and profits from other lending networks.
Alex Kuptsikevich – a senior analyst at Fx Pro – explained in an interview:
The yearn finance coin has become the altcoin star, recently. In a month, it has shown twentyfold growth, living proof that ‘unicorns’ still exist, at least in crypto. The rapid growth of the coin also reflects the popularity of the decentralized financial sector. The creators of the project decided to follow the bitcoin path, limiting the issue of only 30,000 YFI coins. Such limited supply spurs rapid price growth.
DeFi has also seen itself grow through surges incurred by the popular token Chainlink (LINK), which has risen through the ranks to become one of the top five largest cryptocurrencies by market cap in recent months. At one point, LINK wasn’t even in the top ten. However, it has since garnered a market cap of more than $6 billion, making it one of the largest and most powerful coins around.
Some Aren’t Convinced
While YFI seems to be getting a lot of praise and attention as of late, the currency doesn’t have everyone convinced. Andre Cronje – the token’s creator, of all people – has commented that the token is completely “valueless,” explaining:
We reiterate, it has zero financial value. There is no pre-mine, there is no sale, no you cannot buy it, no it won’t be on uniswap, and no, there’s won’t be an auction. We don’t have any of it.