DeFi frenzy picks up steam: YFI nearly $ 40,000, YFII over $ 5,000

CONTENT

  • Hype around the DeFi industry is gaining momentum

  • YFI token tested the area above $ 38,000

  • YFI clone has risen in price five times in a few days

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Yearn.finance (YFI) has risen in price by another 30% over the course of a day and at the moment tested the area above $ 36,000, and one of the numerous clones of the project, DFI.Money (YFII), in a few days increased in price five times and was noted at a level above $ 5600.

According to DefiPulse, the decentralized finance industry (DeFi) Decentralized finance (DeFi) is a blockchain-based financial services that offers users access to an open, efficient and … More – more than $ 9 billion worth of tokens blocked by protocols, with the industry growing at an alarming rate over the past few months.

The Aave (LEND) project remains the industry leader. Now $ 1.71 billion is blocked in it. It is followed by MakerDAO with $ 1.43 billion, Balancer ($ 1.36 billion), Curve Finance ($ 1.26 billion), yearn.finance ($ 953.6 million) and Synthetix ($ 871 million)..

The hype around DeFi continues unabated, even though new projects are growing faster than mushrooms after rain. The growth rate of DeFi tokens this year is well ahead of Bitcoin and other large-cap digital coins. On this wave, projects that serve the DeFi infrastructure are floating well. For example, LINK, token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More of the Chainlink project, also shows a strong upward momentum.

Now the coin is in fifth place with a market capitalization of nearly $ 6 billion. The rate reached an all-time high on August 16 at $ 20.00. As of this writing, LINK / USD is trading at $ 17.00. Cryptocurrency exchanges are also adding fuel to the fire, which willingly add popular DeFi tokens to the listing..

Turning $7,000 into $100,000 – Yearn Finance (YFI) (Episode 1)

LINK / USD chart, source: Tradingview

Passion for YFI

YFI is the governing token of the yEarn DeFi project, or yearn.finance, which aggregates the income of various credit protocols. Token holders can vote on proposals to improve or change the operation of the network. The more tokens you have, the more influence.

Read about how speculators make money on DeFi protocols in our article.

Almost all large DeFi projects have such governance tokens, but this summer they turned into powerful speculative assets. Aave (LEND), Curve (CRV) and Compound (COMP) tokens are quite successful, but YFI is puzzling to many: an unknown token now costs more than bitcoin at an all-time high in 2017. This is partly due to the fact that there are only 30 thousand YFI tokens and 18 million bitcoins..

The token of the yearn.finance project, YFI, has risen in price by more than 151% in a week and at the moment is testing the $ 38,883 area, leaving bitcoin holders biting their elbows with envy. At the time of writing, the token is trading at $ 32,325, with the coin’s market cap holding close to $ 1 billion according to CoinMarketCap..

DeFi frenzy picks up steam: YFI nearly $ 40,000, YFII over $ 5,000

YFI chart, source: CoinMarketCap

Attack of the clones

YFI has become so successful that it has spawned a number of imitators, including YFII, YFIII, YFIE, and WAIFU.

Yesterday we wrote about the SUSHI project, which is cannibalizing Uniswap. Today a new twist: DFI.Money (YFII), a clone of the yearn.finance project, has risen in price fivefold in a few days, from $ 1.154 to a recent high of $ 5.600. as of this writing, the coin is trading at around $ 5,000, up 59% on a daily basis. YFII is ranked 75th on CoinMarketCap with a capitalization of $ 189 million. Interestingly, YFII’s high point coincided with YFI’s rise to new all-time highs.

It is noteworthy that initially YFII was unable to attract users and for a long time stayed at zero.

However, despite explosive growth, there are still challenges in the industry that need to be addressed before technology moves beyond speculation and becomes widespread. In particular, it is about the security of the protocols and the ease of use. Earlier, the editors of BeInCrypto have already reported that many DeFi fans cannot clearly explain how this system works and what is happening..

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DeFi Madness Gains Traction: YFI Nearly $ 40,000, YFII Over $ 5,000
DeFi frenzy picks up steam: YFI nearly $ 40,000, YFII over $ 5,000

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DeFi frenzy picks up steam: YFI nearly $ 40,000, YFII over $ 5,000

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