DeFi tokens are leading crypto markets to their highest levels in terms of total market capitalization for over a year.
One of the top-performing digital assets at the moment is YFI, as it surges over 70% on the day to reach an all-time high at $12,821. It has become the only cryptocurrency since 2016 to have ever flipped Bitcoin’s dollar value.
The token is the basis of the Ethereum based DeFi yield aggregator Yearn.Finance, which allows users to earn interest and maximize returns on crypto collateral while saving on transaction fees and research time.
Supply and Demand
In a shrewd move, the platform released the entire supply of 30,000 YFI at once, while the founder, Andre Cronje, did not keep any $YFI for himself or the team. Scarcity breeds demand it seems, and in this case, token prices have skyrocketed.
Even industry stalwarts have noted the monumental rise, adding that it will soon be equivalent to one Bitcoin and it didn’t take long for this to happen.
1 YFI = 1 BTC soon.
Few understand this. https://t.co/SGcMedQnNR
— Anthony Sassano | sassal.eth 👨🌾 (@sassal0x) August 17, 2020
The platform has released the details of three new tokenized insurance pools for liquidity providers. The Yinsure.Finance system will be comprised of three core components; Insurer Vaults, Insured Vaults, and Claim Governance. It explained that;
“The design of this system allows any asset that has a financial primitive to be insured, be it a base asset such as DAI, or a composite asset such as aDAI or yDAI.”
YFI Makes History
YFI’s performance has been nothing short of impressive ever since it launched. In fact, it’s close to making history.
The only other asset that has traded for over 1 BTC since 2016 is ZCASH. The day it launched, the cryptocurrency actually reached a price of 3299.9999 BTC. According to a post on the matter, this order only filled a fraction of a BTC worth, but it’s still worth noting.
However, as that day progressed, ZEC was trading at a price upwards of 12 BTC. Even though there were only a few ZEC in circulation back then, this is still, technically, the only other cryptocurrency that traded at above 1 BTC.