Yearn.finance’s original token YFI has risen more than 75% in 24 hours, reaching a new all-time high. , 38,883 On beans in its (USDT) pair. Strong side action also brought the market capitalization of DeFi-tokens to over 1 billion.
YFI / USDT 1-hour chart. Source: Trading View.com
Traders are excited but has YFI been overvalued?
The general sentiment around YFI from decentralized finance (DFI) enthusiasts seems positive. IDEOVC’s Ian Lee has released a fast-paced product by Andre Kronje, developer of Anniversary Finance, who introduced it as a positive long-term catalyst for WiFi.
Over the past month, Kronje has introduced a variety of products, including yinsure.finance. Many investors, including Fred Ehrsom of Paradigm, have emphasized the potential for DFI insurance to evolve into the next big market.
Rapid dynamic development of products, as well as A.N. The active community around finance is pushing for the reform of YFI. Lee Wrote:
“We have seen something bigger than this. Due to Andre Kronje’s construction and ship speed, YFI is the fastest growing self improvement / innovation asset, period. “
In the long run, some analysts say the annual financial valuation could reach several billion dollars. As a final bull case, analyst Tyler Reynolds suggested a market cap potential of 15 15 billion based on a cash flow analysis. He Said:
“500K $ YFI = $ 15BMcap If it trades at 50x FCF, it needs to generate M 300M for the holders it already produces 20M D gene and other new Arab opportunities will increase as USSD / YCRV increases. And add to products (e.g. insurance) and we do not exceed M 300M in FCF. “
However, there are many risks to the long-term trend of YFI. The most obvious risk would be the heavy reliance of Trishna’s finances on its main developer, Cronje. There is constant pressure on the developer to release new products and features.
Like all Defy Tokens, there is a risk of a decline in yield. If the overall yield in the Defy market declines, then YFI and craving. Demand for finance may also decline. The biggest threat to yield in Defy Space is the cost of Ether (ETH). If the ether continues to decline and the rule token slips as a result, the yield can be significantly reduced.
Important near-term variables
In the near term, the two variables that can slow down the speed of YFI are its evaluation and fluidity. In terms of total locked value, YFI has reached a fair valuation of more than 700 million fairies close to its competitors.
A cryptocurrency researcher known as Hsu also said that when comparing other defy-protocol stablecoin pairs, YFI is equid. YFI’s ETH pair corresponds to a slippery lend, but its stablecoin pair is much lower.
Smile Wrote:
“$ YFI will erupt now, but it is a hell of a liquid as there is very little supply on the exchanges. Also try to sell 100 cans and you will get 3% more than the price. For comparison, the SLEPJ selling END Lend (another DeFi coin with the same mcap) priced at K 100K is 0.2 0.2%. I just check the stablecoin pair, don’t expect ETH to be the most liquid pair of $YFI. Slippery is significantly less on YFI / ETH, with $ Lend.
