The DeFi project token yEarn Finance (YFI) continues to reach new heights. The asset’s price briefly rose above $38,000, and its market capitalization surpassed the $1 billion mark.
At the time of writing, the coin is trading around $32,700.
According to CoinGecko, over 30 days YFI rose 644%, over a week 131%, and over the last 24 hours 66.6%.
In terms of market capitalization, the token overtook Dash and approached the leading DeFi service, Aave.
The project rose to fifth place in the DeFi Pulse ranking, overtaking Synthetix and Compound.
YFI is among the most scarce crypto assets — only 29,963 coins are in circulation, and total supply is 30,000. Likely, growing speculative demand for such a restricted-supply asset and the popularity of yield farming are the main drivers of YFI’s rapid rise.
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Analyst Tyler Reynolds concluded that the asset’s market cap could reach $15B. For this to happen, the price of YFI would need to rise to $500,000.
500k $YFI = $15B mcap
If it traded at 50x FCF, then it would need to generate $300M for holders
It’s already generating $20M and that will go up as yUSD/yCRV grows
Add in other new arb opportunities & products (eg insurance) and we’re not far from $300M in FCF— Tyler Reynolds (@tbr90) August 29, 2020
The more conservative forecast from BitMEX head Arthur Hayes suggests YFI could rise to $100,000.
I don’t think y’all heard me. 1 $YFI = $100,000. pic.twitter.com/IGirAovezB
— Arthur Hayes (@CryptoHayes) August 30, 2020
Crypto researcher Hasu also allowed for further growth of YFI. However, in his words, the token is illiquid. This means that trading it in large volumes comes with strong slippage.
Correction on this post: I only checked stablecoin pairs, not expecting that $YFI‘s most liquid pair would be ETH. Slippage on YFI/ETH is substantially lower, in line with $LEND.
— Hasu (@hasufl) August 29, 2020
YFI’s growth has significantly accelerated since the token’s listing on the Binance exchange.
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