Subsequently, after a substantial 40% correction after garnering a listing on Binance, yearn.finance (YFI) is back in the limelight as the decentralized finance altcoin has more than doubled in around three days. Conferring to CryptoSlate data, the Ethereum-based coin trades at the highest worth of $9,200, up 30% in the past 24-hours alone.
YFI’s upsurge comes as the decentralized finance space has sustained its ascent, spurred by the launch of Curve’s native token based on Ethereum, CRV.
Ethereum-based YFI upsurges directly over $9,000
YFI’s latest leg higher to a new all-time high just shy of $10,000, which is the first time a popular altcoin has neared that psychological price level, comes on the back of several fundamental trends:
DeFi Pulse, a decentralized finance data site, has stated the amount of value locked in Yearn.finance has stretched a new all-time high of $602.9 million due to the launch of CRV. CRV’s introduction is incentivizing investors to lock capital in the Yearn.finance ecosystem. The worth of tokens locked in Yearn.finance is up 300% in the past five days alone. This precise metric is what many analysts use to value DeFi coins, including YFI.
Yearn’s lead developer & founder, Andre Cronje, is working on yinsure.finance, a decentralized insurance platform for DeFi protocols. With there presence of many DeFi hacks, bugs, and other mishaps, there is much demand for an Ethereum-based decentralized insurance product. The product will be structured to allow additional value to flow into the Yearn.finance ecosystem.
Still, undervalued? Some analysts think so
While YFI has grown more than 100 percent over recent days, some assert that the coin is still grossly undervalued. This comes although YFI is a cryptocurrency that launched just a month ago for $3, rendering to several reports.
The investigation by Yearn.finance-focused commentator “Learn Yearn” originated that if YFI was valued as Compound’s COMP token is valued, the crypto would have a value of over $21,000 around 130% higher than the current price.
The commentator added that with expected growth in the value of crypto assets locked in Yearn.finance, attached to the launch of new products to the platform by developers, YFI is likely to move higher than it is now.
This was echoed by one more analyst, who argued earlier this month that by comparing YFI’s valuation to that of other DeFi coins like Aave’s LEND, Balancer’s BAL, and Maker’s MKR, it could be said that YFI is intrinsically undervalued by over 50%. Community sentiment about the altcoin has stretched a point where there are YFI token holders who are utterly pushing for a “token split” when the cryptocurrency exceeds the price of one Bitcoin, presently at $12,300.
This is about a “stock split,” where a company upsurges the number of shares in it, though it does not dilute shareholders. Tesla lately did a five-to-one split, which caused its price to spike despite the split not affecting any intrinsic aspect of the electric car company’s business. YFI proponents’ efforts to accomplish a similar influx of hype by pushing for this “token split” when the asset surmounts the worth of one BTC.