DeFi-Yield-Hunting Token YFI Explodes to $11K From $32 in One Month

A governance token for DeFi investment protocol yEarn Finance has shot up to over $11,000 despite barely being a month old.

AccessTimeIconAug 18, 2020 at 4:25 p.m. UTC
Updated Mar 6, 2023 at 2:50 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The governance token for yEarn.finance (YFI) has shot up over 32,000% since mid-July as investors have poured hundreds of millions into its protocol, which identifies and exploits some of the best opportunities in the white-hot decentralized finance (DeFi) space. 

  • CoinGecko data shows YFI tokens shot up to nearly $11,250 on Tuesday before giving back some gains: they were just $32 when they started trading on July 18.
  • As the graph below shows, YFI soared past $1,000 the day after launching and was already worth $4,000 by the start of August.
  • Investors have poured hundreds of millions into yEarn since it launched mid-May. On July 18, the protocol had $9.3 million in total value locked; at press time there were over $600 million, according to DeFi Pulse.
  • After a relative lull, the token doubled from $5,500 on Sunday to over $11,000 earlier Tuesday before dropping over $1,500 to $9,800 as this article was going to press.
  • In yEarn, investors deposit digital assets into the protocol which identifies and executes various DeFi trading strategies, offering ROIs of up to 95% on their holdings – the platform taking 5% of total yield as fees.
  • As a governance token, users can stake YFI in order to determine the overall direction of the protocol along with other token holders.
  • Helping drive demand is the scarcity of the tokens. There are only 30,000 YFI tokens – a $300 million market cap – with the vast majority already circulating in the ecosystem.
  • yEarn founder Andre Cronje told CoinDesk the price rise likely came from a combination of scarcity and the fact traders were using YFI in some of the other DeFi protocols.
  • Many big holders, such as Framework Ventures, are now hoarding YFI tokens for the staking rewards – increasing supply pressures still further, he said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about