Have you already heard about yEarn.finance and YFI token on every side? Are you interested in why this asset is so fast-growing? Created less than a year ago, the coin outperformed the most significant part of the long-standing cryptocurrencies, and YFI took roots on the DeFi market.
How will the YFI token perform in the cryptocurrency sector? Let’s look at the project’s inner part and the future price projections to find out if yearn.finance crypto is worth an investment.
Table of Contents
Yearn.finance and YFI Token Explained
Yearn.finance is a decentralized finance platform that performs as a host of functions such as leveraged trading, aggregated liquidity, and automated market maker. The project was established in February 2020. It is now one of the most popular crypto ideas.
Yearn.finance was introduced to the world by Andre Cronje. Since he initially did the project for himself, he warns the users that the project is in beta, so users should use it at their own risk. Moreover, Cronje is notorious for all contracts being pushed directly to the mainnet without conducting any audits.
The yearn.finance platform provides the opportunity for crypto coin holders to participate in yield farming, interacting with DeFi-protocols. The farming process resembles the usual planting of seeds in the ground to multiply them.
To harvest the DeFi of the yearn.finance platform, you need to lock (place a bet) in cryptocurrency. YFI virtual tokens are distributed among platform members as a reward.
Yearn.finance’s decentralized aggregator ecosystem uses services like Aave, Compound, dYdX, and Fulcrum to optimize token lending. When you deposit your crypto assets with yearn.finance, they are converted into yTokens, which are rebalanced to select the most profitable lending services. Yearn’s mission is to identify promising DeFi services for mutually beneficial synergies. One of the most famous yTokens integrators is Curve.fi. This platform creates AMM (Automated Market Maker) between yDAI, yUSDC, yUSDT, and yTUSD.
YFI is the platform’s governance token. The asset is only distributed to users who provide liquidity to the platform using yToken (when you place your bets and receive interest). The YFI project aimed to release the most decentralized digital asset, with no pre-mining, presale, or distribution to the team. Any changes are made through online suggestions and voting. Every YFI token holder has a vote.
YFI Token Price Changes
At the end of July 2020, YFI token attracted users’ attention amid the hype around the decentralized technology market. People saw the distinctive feature in the ability to yield farming crypto coins. In a week since launch, the YFI coin has grown from $34 to $4,500. On 10th August, the token rate increased to $6,500 due to the listing on Binance exchange. In a couple of days, the price of YFI doubled to $12,800 point.
At the end of August, YFI market cap reached $1 billion, and the price came close to $40,000. A correction followed this event. However, on 11th September, Coinbase Pro trading platform announced YFI token listing. It raised the price of an asset to $35,000.
Yearn.finance (YFI) Token Live Price
YFI Token Price Projections for 2020 – 2025
As always, it’s hard to predict anything in crypto space. Especially, when it comes to such hype things as YFI and DeFi sector as a whole. However, Changelly has aggregated some YFI forecasts to find out the possible future of the asset.
YFI Token Price Prediction for 2020
According to Jordan Spence, Chief Marketing Officer of MyCrypto project, Bitcoin will be equal to zero, and all DeFi sector coins will go to space. Do you see the irony?
Automated forecast systems, such as Wallet Investor and Digital Coin Price, predict YFI cryptocurrency’s uptrend. According to the first, the YFI token price is going to be about $58,000 by the end of the year. Digital Coin Price predicts a massive growth to the $92,100 point.
YFI Long-Term Price Prediction
No one can predict the future of any cryptocurrency. However, we can show you the possible forecast for the YFI token.
|Year||Wallet Investor||Digital Coin Price|
As you can see, the prediction is bullish. We wouldn’t be so sure about that. We remind you that the cryptocurrency market is highly volatile. Therefore, always do your own research before investing in any cryptocurrencies.
The hype around DeFi continues unabated, even though new projects are growing rapidly. The growth rate of DeFi tokens this year is mostly ahead of Bitcoin and other large-cap digital coins. On this wave, projects that serve the DeFi infrastructure are floating well.
YFI became the first altcoin to beat Bitcoin’s price. Some investors in the DeFi space say YFI has potential for growth as its proposal is almost fully realized.
Disclaimer: Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.