YFI one of the hottest tokens right now was able to skyrocket to $11,000 after a large buying pressure from users in the Decentralized Finance (DeFi) market. The high price of this virtual currency is related to its relatively low supply compared to other digital assets in the market. However, there are very high risks related to this virtual currency that could affect users that invest at the top.
YFI Skyrockets to $11,000
The Decentralized Finance market has been expanding in recent months and new companies and projects have released their solutions. yEarn Finance is one of these firms that has been operating in recent times and that has been offering users the possibility to get exposure to the DeFi market.
As it happened in the past with the Inital Coin Offering (ICO) market, a large number of users were speculating with the price of the tokens released to the market. Investors are doing the same now that DeFi is a hot topic and it has attracted a larger number of users.
However, the founder of this project, Andre Cronje stated in a Medium post:
“We have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value. There is no pre-mine, there is no sale, no you cannot buy it, no, it won’t be on uniswap, no, there won’t be an auction. We don’t have any of it.”
Thus, the creator of the platform is already stating that the YFI token is valueless and it has 0 financial value. Nevertheless, the token has now a price of over $11,000 as reported by CoinMarketCap and it became the 46th largest cryptocurrency in the market with a valuation of $331 million.
Users can YFI by providing liquidity to a wide range of decentralized finance platforms that are currently operating in the yEarn ecosystem. Once the user stakes the tokens in the distribution contracts, they will also earn YFI tokens on a regular basis.
The entire cryptocurrency market is now in bullish mode and the DeFi market is playing an important role in providing an extra impulse to some cryptocurrencies. According to data provided by DeFi pulse, the total value locked in USD in decentralized finance applications has reached $6.21 billion.
Currently, yEarn Finance is the 6th largest DeFi protocol in the market. The largest is Maker, followed by Aave and Curve Finance.