It’s no longer news that crypto traders and investors are rushing into Yearn.Finance.
However, what has recently astonished most major players in the crypto industry is the fact that Yearn.finance’s native token YFI has gained more than 75% in the last 24-hours, achieving a new all-time high at over $38,500.
Some leading crypto experts believe this is just the beginning for yearn.finance, meaning it could reach billions of dollars in the mid-term, as analyst Tyler Reynolds suggests the possibility of a $15 billion market cap based on cash flow analysis. He said:
“500k $YFI = $15B market capitalization 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.”
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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 $300M in FCF— Tyler Reynolds (@tbr90) August 29, 2020
However, a top crypto researcher with the pseudo name, Haus advised investors and traders to be wary of the most expensive crypto coin, as it has fundamental challenges, that include poor market liquidity. He continued by saying;
“$YFI may be ripping right now, but it’s illiquid as hell as very little of the supply is available on exchanges. Try selling even 100k and you’ll tank the price by 3%.
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“For comparison, the slippage on selling $100k worth $LEND (another DeFi coin with a similar market capitalization) is 0.2%”
$YFI may be ripping right now, but it's illiquid as hell as very little of the supply is available on exchanges. Try selling even 100k and you'll tank the price by 3%.
For comparison, the slippage on selling $100k worth $LEND (another DeFi coin with similar mcap) is 0.2%— Hasu (@hasufl) August 29, 2020
“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.”
What you must know: There are multiple protocols providing yield (returns) on the capital that you lend. These yields vary from one protocol to the next. YFI automates & optimizes lending such that you can earn maximum value on your capital without researching each protocol.
The token is used by Yearn.finance as a tool in producing returns from stablecoin deposits such as Tether.
These returns have become so attractive to investors that hundreds of millions have been transferred to the Yearn.finance protocol.
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This increase in deposits led to an increase in the value of YFI, which is representative of the value of the Yearn.finance ecosystem.
Yearn Finance’s advantage over Bitcoin: With a mere 30k token supply making it more scarce than even Bitcoin, $YFI is the hardest money the world has ever known.
