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As the Defi sector grows, yEarn.finance hit a new high of almost $13,000 from its first trading price of $32. YFI has now spiked to over $10,000.
DeFi giant yEarn Finance (YFI) jumped over 300% to a new high of $12,800. The consistent increase started in mid-July when YFI began trading on the 18th. About twenty-four hours after its launch, the token climbed over $1,000 and later hit $4,000 earlier in August.
The DeFi sector has grown significantly in the last few months. Lending providers in the sector have also started getting more recognition from a large number of people. According to founder Andre Cronje, yEarn Finance enables profit switching for lending providers that need to move funds independently between platforms such as Aave, Compound, and dydx.
yEarn Finance Grows as DeFi Sector Expands
yEarn Finance launched on the 17th of August, following an announcement by Cronje. The token began trading on the 18th at $32 and has soared massively since then. On the same day, YFI had $9.3 million in total locked value. At the moment, analysis by Defi Pulse shows that the yEarn Finance total locked value has now hit $638 million.
Since its launch, yEarn Finance has been making headlines. On the 25th of last month, Cryptopotato reported that YFI climbed 35,000% in seven days. Similarly, a report by Cryptoticker revealed that YFI increased over 65% from $4,500 to $6,912 in less than two hours, on the 11th of August. Furthermore, the token rose about 100% from its $5,500 price on the 16th to $11,000 on the 18th of August. It has now dropped to about $10,400.
Investors in yEarn deposit digital assets into the platform, which identifies and carries out various DeFi trading strategies. After this, the investors receive returns of 95% while the yEarn Finance platform takes 5% as charges.
YFI Price Surge
Speaking on the consistent rise in the price of YFI, Andre Cronje told CoinDesk that the likely cause is the fact that YFI is being used in some other DeFi protocols. He also referred to the scarcity of the token as another likely reason behind the rise. As reported by CoinDesk, a large number of YFI holders are now hoarding the token. Still, market demand increases.
However, Cointelegraph highlighted three other causes of YFI price increase:
“Three key factors appear to be behind YFI’s recent rally: the release of yInsure Finance, hype fueled by industry executives, and the continued explosive growth of the decentralized finance sector.”
On the 17th of August, Cronje announced the release of yInsure.finance, a prototype for a new kind of tokenized insurance. yInsure.finance allows users to insure their tokenized assets through “Insured Vaults”. For instance, users generate yiUSDT from the vault when they deposit USDT to be insured. Subsequently, users may then create a claim by staking their yiUSDT, through “Claim Governance”.
Recently, YFI has been gaining more recognition as prominent executives in the DeFi sector passed positive comments on the token. An example is a 17th of August tweet by the CEO of BitMEX Arthur Hayes.
My metamask and I are busy this morning. Yearn, bitches. Let’s go, $YFI to da fucking moon! pic.twitter.com/tKaOfXL0kb
— Arthur Hayes (@CryptoHayes) August 17, 2020
In addition, the expanding DeFi market served as a push for the price of YFI. At the moment, analysis by Defi Pulse shows that the total value locked in Defi is $6.29 billion.
Presently, YFI is trading at $11,050.26, with a market capitalization of $331,073,890. The 46th largest asset according to CoinMarketCap, YFI is up more than 13.5% over the last 24 hours and currently trading on 93 active markets.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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