Yield Farming token YFI up 10x in Just One Month
YFI, the governance token for decentralized finance platform Yearn.Finance (yEarn) has broken Bitcoin’s all-time USD high and catapulted to over $ 38,000 per token this month. The rare governance token has a very limited supply of only 30,000, with 29,962 already in circulation.
The token was valued at around $ 3,500 in early August, representing a growth of almost 10 times in value just this month alone. Following a mild correction, the price of YFI has now found support at $ 32,000 and appears to be trading relatively strong at this level.
Yearn.finance is a decentralized token aggregation platform that has exploded in popularity this year. It collates information from various different DeFi protocols and offers the user a clear idea of the best tokens to choose and trade. While the YFI token was originally created as a governance token used by facilitators to vote on various network decisions, it’s now become more commonly viewed as a speculative asset.
Yield farming is a relatively new activity to hit the crypto scene and involves lending and borrowing crypto to earn interest. The activity has picked up the term ‘farming’, where the interest you earn is referred to as your ‘yield’.
Just this weekend alone, the daily trading volume of YFI tokens has exploded from around $ 60 million to almost $ 900 million. Now, Bitmex CEO and popular voice in crypto, Arthur Hayes, believes the token will surpass $ 100,000 in value – restating the prediction in two tweets over the past 24 hours.
In an interview with Decrypt, yEarn creator Andre Cronje commented early this month that he was “tired, broke, and on the verge of quitting” due to the ‘toxic’ crypto community. It wasn’t the first time the South African voiced his feelings about issues in the space, having quit once already back in March.
Despite building the yEarn protocol to create a better, decentralized platform for all, Cronje has received criticism for wielding too much power in the space. In response, he created the YFI governance token so he could put decisions in the hands of the users.
However, despite it originally meant as a value-less token for voting purposes only, Cronje appears to have inadvertently created the most valuable cryptocurrency token ever.