- By touching $19,500, YFI outperformed Bitcoin’s price in less than a month of entering the crypto world.
- YFI has surged by more than 75% in the last 24-hours, touching a new all-time high at $38,883 on Binance in its (USDT) pair.
Is Bitcoin about to lose its position as the number one cryptocurrency? Maybe, maybe not. The reason for this speculation in the cryptocurrency community has stemmed from Yearn.Finance (YFI) exceededing Bitcoin’s price in less than a month of its existence.
YFI, the token from the Decentralized Finance (DeFi) giant yearn.finance, has grown approximately 30% in the past 24 hours as per data from CoinMarketCap. With this, the cryptocurrency has outperformed Bitcoin’s 1% gain and Ethereum’s 1.7% move.
The YFI project developed by Andre Cronje is a platform built on the foundations of Ethereum Blockchain, and allows yield aggregation. The cryptocurrency’s documentation describes Yearn Finance as a “profit switching lender to optimize lending yields.”
YFI Beats Bitcoin
Bitcoin has always been the king of cryptocurrency in terms of price. However, while it remains the largest cryptocurrency by volume, YFI has now emerged as a strong contender to the number one position. Instead, Bitcoin’s price was exceeded by a DeFi token yearn.finance (YFI), which is now closing in on Bitcoin’s own ATH, positioned at $19.507 at the time of writing.
As of August 30, YFI has surged by more than 75% in the last 24-hours, touching a new all-time high at $38,883 on Binance in its (USDT) pair. The robust growth also brought the DeFi-token’s market capitalization above $1 billion. The cryptocurrency’s trading volume has been skyrocketing too, indicating that people’s interest in the coin is not likely to die down anytime soon.
Throughout the past month, yearn.finance and its main developer Cronje have pushed out many products ranging from vaults to decentralized insurance. Recently, Yearn.finance also announced the launch of yinsure.finance, which is one of the first tokenized insurance services to be offered in the DeFi domain, alongside Nexus Mutual. Popular venture capital investors, including Spartan Black’s Kelvin Koh and Paradigm’s Fred Ehrsam, have also said that DeFi insurance has the potential to become a billion-dollar market.
Future Expectations from the cryptocurrency
Market conditions at present are clearly in favour of the newly launched cryptocurrency. For instance, an analysis by a Messari researcher indicates that the YFI price may rise even further. However,in the near term, valuation and liquidity of YFI could hinder the cryptocurrency’s growth. As cryptocurrency researcher Hasu pointed out, in comparison to other defi-protocol stablecoin pairs, YFI’s are illiquid. The slippage of YFI’s ETH pair is in line with LEND, but considering stablecoin pairs, the values are much lower.
Market sentiments around YFI from DeFi enthusiasts are positive. Now whether it wins the crypto race by defeating Bitcoin remains a question of time.