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DEFI Token YFI Crosses $1 Billion Market Capitalization



Yearn.finance and its native cryptocurrency YFI is riding high in recent times with the market capitalization touching $1 billion before receding to around $938 million at press time. The lure of DeFi is attracting considerable investment both from crypto and even non-crypto sources because of solid returns.

DeFi Going Strong

One of the highest single unit value coins in the world, YFI was started to tap into the the Decentralized Finance industry and only started trading in the last second half of last month. Starting from a meagre $885 value and a $4 million market capitalization, the cryptocurrency rose around ten times within a month to $8900 around August 18 with a market cap of around $243 million. However, the cryptocurrency had no plans of stopping there. It has now risen above $38,000 with a market cap expected to breach $1 billion again soon.

This meteoric growth is now being witnessed all around the DeFi industry with rest of the cryptocurrency world either following their pattern in a much more subdued manner. Ethereum which is heavily connected to the DeFi industry has witnessed a considerable surge of around 90% during the last month or so and there is Chainlink (LINK) of course that has been one of the biggest success stories of the year with the coin rising more than 8 times during the last two months alone from $2.3 to $19 at one point.

Is the DeFi Industry Going to Grow at the Same Rate?

The rate at which many of the new DeFi projects are growing is going to become unsustainable at one point because of their dramatic upticks. Many of them will however, act like Chainlink and break the top 15 or even the top 10 barrier easily because of the demand for these platforms. However, the actual productivity and use cases of these platforms are still novel so many experts do not expect them to hang around in the top 10 for a long time. So, it is mostly a short-term gain before the industry matures and builds itself around platforms of real potential.

Still, there is plenty of room for investors to make some smart gains. For example, analyst Tyler Reynolds believes that the YFI market capitalization will reach $15 billion if it acts like an ultimate bull case. That means a potential 15 time profit for current investors but still, all must tread with caution as pump-and-dump schemes are still at large and very much controlling the uptick of new crypocurrency potentials.

This doesn’t mean that the new projects don’t have enough value. However, the rate of their increase in worth is now getting ridiculous and if people aren’t careful, they may loose a lot of their money.

Image source: pixabay.com



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