Yearn.Finance (YFI), a barely know DeFi project has taken the cryptocurrency market by storm. In under one week, YFI surged from $31.53 to as high as $3,458.31 USD.
Launched on July 18, 2020, Yearn.Finance (YFI) gained momentum immediately and experienced a viral affect, surging more than 10,000 percent in a matter of days.
Santiment, a cryptocurrency market data analytics platform first reported YFI’s outstanding performance. yearn.finance (YFI) is a decentralized finance (DeFi) protocol token.
A video posted on YouTube by a Santiment analyst explained YFI and its intant success.
“In a nutshell, YFI is something that makes you money, good ton of money. It is the only thing right now in the DeFi market that gives you the highest yield…
How it does that is by taking whatever you deposit, and it actually goes around and searches all the other platforms, whatever protocols are out there, and finds the best yields in the area and then deposits over there, ensuring that you get the best yields. Think of it as an automated yield aggregator.”
Although the token is presently enjoying massive success, it’s developer, Andre Cronje cautioned investors of FOMO. Cronje said the tokens has zero financial value in its current form.
Yearn.Finance (YFI) overnight success
However, the crypto community thinks otherwise. At the time of this writing, CoinGecko tracking shows Yearn.Finance (YFI) trading at $3,682.75. That’s a whooping 10,828.6% from $31.65 market price on July 18th.
While DeFi-based tokens account for most of crypto gains in the past few months, Santiment warned investors to tread carefully due to the volatility of the crypto market. Crypto investments can be lucrative, but comes with high risk
“It’s important to note that DeFi is pretty nascent. There are very real inherent risks involved: Smart contract exploits/bugs/hacks, collateral getting liquidated, Stablecoin de-pegging.”
What are your thoughts, can Yearn.Finance’s YFI token surge last?
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.