After a strong 40 percent correction after garnering a listing on Binance, Yearn.finance (YFI) is back in the spotlight as the decentralized finance altcoin has more than doubled in approximately three days. According to CryptoSlate data, the Ethereum-based coin trades at an all-time high price of $9,200, up 30 percent in the past 24 hours alone.
YFI’s surge comes as the decentralized finance space has continued its ascent, spurred by the launch of Curve’s native token based on Ethereum, CRV.
Ethereum-based YFI surges above $9,000
YFI’s latest leg higher to a new all-time high just shy of $10,000, which is the first time a reputable altcoin has neared that psychological price level, comes on the back of a number of fundamental trends:
- DeFi Pulse, a decentralized finance data site, has reported the amount of value locked in Yearn.finance has reached a new all-time high of $602.9 million due to the launch of CRV. CRV’s launch is incentivizing investors to lock capital in the Yearn.finance ecosystem. The value of tokens locked in Yearn.finance is up 300 percent in the past five days alone. This specific metric is what many analysts use to value DeFi coins, including YFI.
- Yearn’s lead developer and founder, Andre Cronje, is working on yinsure.finance, a decentralized insurance platform for DeFi protocols. With there being many DeFi hacks, bugs, and other mishaps, there is much demand for an Ethereum-based decentralized insurance product. The product will be structured to allow more value to flow into the Yearn.finance ecosystem.
A 4 hour short story pic.twitter.com/7qpC0gQF2Z
— Kevin Bélanger (@kvnbelanger) August 17, 2020
Still undervalued? Some analysts think so
While YFI has gained in excess of 100 percent over recent days, there are some that assert that the coin is still grossly undervalued. This comes in spite of the fact that YFI is a cryptocurrency that literally launched just a month ago at a price of $3, according to some reports.
Analysis by Yearn.finance-focused commentator “Learn Yearn” found that if YFI was valued as Compound’s COMP token is valued, the crypto would have a value of over $21,000 — around 130 percent higher than the current price.
The commentator added that with imminent growth in the value of crypto assets locked in Yearn.finance, coupled with the launch of new products to the platform by developers, YFI is likely to move higher than it is now.
This was echoed by another analyst, who argued earlier this month that by comparing YFI’s valuation to that of other DeFi coins like Aave’s LEND, Balancer’s BAL, and Maker’s MKR, it can be said that YFI is intrinsically undervalued by over 50 percent.
Community sentiment about the altcoin has reached a point where there are YFI token holders who are seriously pushing for a “token split” when the cryptocurrency surpasses the price of one Bitcoin, currently at $12,300.
This is in reference to a “stock split,” where a company increases the number of shares in it, though does not dilute shareholders. Tesla recently did a five-to-one split, which caused its price to spike despite the split not affecting any intrinsic aspect of the electric car company’s business.
YFI proponents attempt to accomplish the same influx of hype by pushing for this “token split” when the asset surmounts the value of one BTC.
The post Yearn.finance (YFI) surges to new all-time high above $9,000 as DeFi continues ascent appeared first on CryptoSlate.
By: Nick Chong
Title: Yearn.finance (YFI) surges to new all-time high above $9,000 as DeFi continues ascent
Sourced From: cryptoslate.com/yearn-finance-yfi-surges-to-new-all-time-high-above-9000-as-defi-continues-ascent/
Published Date: Tue, 18 Aug 2020 07:00:34 +0000