The DeFi boom continues with full force as the total value locked approaches $5 billion. Interestingly enough, a relatively young cryptocurrency has turned into the poster child of yield farming – YFI, the governance token of yearn.finance.
Launched just a few weeks ago, YFI is currently the second-most expensive token on the market, valued upwards of $6,000. Its growth rate is nothing short of impressive, and community members are already wondering if it would be able to catch up and even surpass Bitcoin in terms of price.
Less than a month ago, on July 17th, Andre Cronje announced the release of YFI – a governance token for Yearn Finance.
The most exciting bit, from today’s standpoint, is what Cronje said regarding YFI’s value.
“… we have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value. There is no pre-mine, there is no sale, no you cannot buy it, no, it won’t be on Uniswap, no, there won’t be an auction. We don’t have any of it.” – He said.
As it often happens in the cryptocurrency space, though, things took an interesting turn. YFI was, indeed, listed on Uniswap and on a few other exchanges as well. Its value skyrocketed by 35000% in less than seven days as it reached $3,000.
Today, Binance, the world’s largest cryptocurrency exchange, announced support for YFI as well.
Naturally, the price skyrocketed. At the time of this writing, YFI is trading at $6,270, according to CoinMarketCap. This represents a daily increase of about 42%, and it’s still the second most expensive cryptocurrency on the market.
YFI is currently ranked 60 among the top 100 projects in the industry, boasting a market capitalization of about $185 million. The astonishing thing about this is that while other cryptocurrencies have a circulating supply in the millions, there are only about 30,000 YFI tokens on the market.
On the other hand, data from DeFi Pulse shows that Yearn Finance boasts about $152 million of total value locked in the protocol, making it the 10th largest one in the space.
It’s interesting to see whether the growth of the protocol will keep going and if YFI will continue to increase in value.