It seems almost unbelievable that there is a crypto asset out there that is worth more than Bitcoin. Surely, there must be some mistake with the figures. There’s no way a crypto asset could ever have caught up to Bitcoin, save for Ethereum. But, it is not Ethereum. It is another crypto-currency entirely. Does such crypto even exist? Why yes, it does indeed exist, and that is the YFI token, the native token for the yearn.finance protocol.
This Yearn Finance price prediction article will take a look at the price history of the YFI token, as well as where it is expected to be heading in the near and distant future. We will also analyze its tokenomics, as well as its protocol, and if it is not yet too late to buy this rare gem.
YFI Historical Price Analysis
The YFI token was launched back on July 20, 2020. According to CoinMarketCap, its initial price was a whopping $1,210.33. CoinGecko initially listed the YFI a few days before CoinMarketCap and had it listed at $34.53. A price immediately spiked in just two days, a very promising start.
As the months went by, the price continued its sharp upward trend. By the end of August 20, the price reached a staggering $37,992.44. To put this into perspective, Bitcoin was only at $11,421.49 on the same day! The price did cool off, though, before then almost immediately reaching $42 187.01 by September 12 before again cooling down.
The price continued its downward trend, reaching a low $9 267.78 by November 5, 2020, before it started going up again. Between December 2020 and the early months of 2021, the price of YFI continued to go up even higher, despite experiencing a few bumps along the way. It reached another all-time high of $49,478.75 on February 12 before it began to experience a consolidation phase. By the beginning of March, it began to go up again.
On May 10, 2021, it experiences a parabolic trend, reaching a jaw-dropping all-time high of $88 277.36 on May 12! Yes, ladies and gentlemen, the YFI token beat Bitcoin on reaching that $80K landmark.
However, the YFI token must have forgotten who is still the number #1 crypto king in the market because not long after, it experienced a sudden drop in drop, following Bitcoin down to a low $27,917.53 by May 23, 2021. The price did try to resist, but it was ultimately futile.
Thankfully as the rest of the crypto market began to recover, so did the price for YFI.
Current Price, Market Cap, & Supply Details
At the time of writing this article, it is currently sitting at $44,963.08. It is currently ranked #59 by CoinMarketCap with a market cap of $1,654,481,587. The last 24 hours have experienced a -10.29% decrease in price.
The YFI has a current circulating supply of 36,635.03. Its maximum supply is only 36,666. This is a major reason why its price is so high, even more so that there 30.97 YFI tokens left to be minted!
Yearn.finance (YFI) Future Price Forecast Predictions
This section will analyze the price forecast in both the short and long term.
When analyzing the price between the short term and long term, they sometimes conflict on where the price can go. Wallet Investor has a bearish sentiment for the short term. Given the massive drop in price the crypto market experienced a few weeks ago, this is not surprising, and investors should proceed with caution. There is still a lot of fear and volatility that could further cause the price to go down.
However, in the long-term, the forecast is much more positive. Both Wallet Investor and Digitalcoin predict a price increase of up to $80,000 sometime in early 2022. TradingBeast.com also predict the price for YFI to go up, although at a much slower pace.
Short Term Forecast
Long Term Forecast
Yearn Finance Price Prediction 2021
As the chart above indicates, the rest of 2021 appears to be promising, despite the bearish sentiment still running through the market. It is expected that the price of YFI is to go up to more than $60,000, with occasional $70,000 increases.
Yearn Finance Price Prediction 2022
By the year 2022, the price would surpass its previous all-time high of $80,000. Although there is expectation for some correction, the price is expected to have a 69.50% average increase.
Yearn Finance Price Prediction 2025
2025 is where things get really interesting. The price forecast is to be at an average of $132,250.58! That’s an almost 200% increase from the current price!
Is YFI a Good Investment?
Considering YFI’s historic price movement, as well as after analyzing the price forecast, this writer would have to confidently say that investing in YFI is definitely one of those tokens that should be in your portfolio. The price is relatively expensive, but given its highly limited supply and potential, not to mention those potential strong gains, all roads seem to point to the conclusion having some YFI in your wallet is the best way to go.
Keep in mind that unless you have a large amount of cash on hand, it is not necessary to buy on whole YFI. Like any other cryptocurrency, YFI is fractional, so you can buy a portion of a whole token.
How to Buy YFI?
Because of the relatively high demand, YFI can be bought from many exchanges. Most notable are Binance, Coinbase Exchange, Huobi Global, Bithumb, FTX, and Kraken.
You can also swap some ETH for YFI on the 1inch DEX, Sushiswap, and Uniswap.
More Information About YFI
What is YFI?
YFI is the native token for the Dapp yearn.finance. So, what is yearn.finance? Well, it is a yield aggregator built on the Ethereum blockchain that is able to maximize yield by allocating liquidity to a number of different DeFi protocols. In other words, instead of looking at many different DeFi dapps, looking to see which of them offer the best yields or APY, yearn.finance automatically does that for you.
Yearn Finance comprises four core products that function together seamlessly to enable a smooth running of the protocol and enable users to gain on their investment:
Vaults: A passive-investing tool that automatically generates yields through capital pools;
Cover: A KYC-less insurance policy for smart contracts;
Zap: A tool that allows you to swap in and out of certain liquidity pools;
Earn A lending aggregator that continuously searches for the best interest rates.
The YFI token is the governance token for the yearn.finance project. Any user holding YFI gives him/her a say on the way the project is governed. Unlike other projects and their tokens, YFI is earned by users who provide liquidity to the protocol. It was no pre-mined, nor did it have a pre-sale.
In addition to governing, YFI holders can also stake their YFI in order to govern, as well as to earn rewards generated from the protocol. This provides the incentive for holders to stake their YFI in order to earn passive income, taking it out of the market and hence, making it highly valuable.
yearn.finance was founded by Andre Cronje. Cronje is a well-known cryptocurrency expert with extensive knowledge in mobile development and distributed systems. Prior to dedicating his time to developing Yearn Finance, Cronje was a Head of Technology for several companies, where he started grasping blockchain and cryptocurrencies. After that, he dove deep into this technology and performed roles as advisor, engineer, analyst, and consultant for a series of companies such as CryptoCurve or Kosmos Kapital and projects such as FUSION foundation or Fantom Foundation.
It was initially named iEarn but was later rebranded as yearn,finance. Its mainnet went live in July 2020.
The protocol is maintained by independent developers and YFI holders.
In conclusion, although there is never a guarantee, based on price forecast analysis, as well as the tokenomics of YFI and the popularity of the protocol itself, it is a safe bet to assume that its price is expected to continue its upward trend in the not so distance future.
With the increasing mass adoption of cryptocurrencies and in particular the massive popularity DeFi projects have been experiencing lately, yearn.finance has no shortage of users wanting to easily earn the highest yield without having to constantly look at various Dapps with the highest APY. By the looks of things, the protocol, as well as its native token, have a bright future.