In the last few days, the price of the Yearn Finance (YFI) token has literally exploded, marking a vertical upsurge that has allowed the DeFi token to score a new all-time high.
Even on the volume side, there has been a rise, in part thanks to the listing on the Binance exchange through which many people now have access to the token, as before it could only be recovered in certain pools.
If we check the various exchanges that have this token, it is clear that not many of them have liquidity, unlike Binance.
From the supply data we can see that there are over 7500 holders and the tokens are distributed as follows: 9372 in governance, 3800 in Aave, 2600 in Binance, while the rest are divided into various addresses and protocols such as Balancer, Cream Finance and Uniswap.
This is a token that was traded at just $32 at the beginning and now has already exceeded $33,000 with a market capitalization of over $1 billion: we are talking about an increase of 103125% in just one month.
The same BitMEX CEO, Arthur Hayes, has hypothesized that it could soon reach 100 thousand dollars.
— Arthur Hayes (@CryptoHayes) August 29, 2020
This shows how decentralized finance (DeFi) is attracting a lot of interest and is probably not even at its maximum yet as it could still reach several sectors also with other blockchains.
Currently, a large part of the DeFi applications are on Ethereum, but the gas problem is growing steadily on this blockchain, and it is now reaching unsustainable levels every day, especially for small users.
Yearn Finance vs Bitcoin
As high as Yearn Finance’s price may be, which is 3 times higher than Bitcoin’s, this is not enough to unhinge BTC from the first position, since YFI has a small supply, and in order to exceed Bitcoin’s capitalization, it would require a price per token of over $7 million, which seems extremely unlikely, though if YFI continues to grow at this rate then it could achieve higher figures.