The valueless YFI token has increased by 53% overnight, booming over the past 24 hours from a low of $4,198 to a high of $6,435 as we are reading more in the upcoming altcoin news today.
The governance token of yearn.finance, the completely valueless YFI token increased by a massive 53%, as it was described by its team:
“We reiterate, it has 0 financial value.”
Yearn.Finance is a decentralized finance protocol that lets the users earn interest on cryptocurrency deposited in a smart contract. According to the metrics site DeFi pulse, yearn.finance is the sixth-biggest defi protocol with a $585.3 million in smart contracts. The YFI token rewards the depositors for using the protocol similar to a loyalty scheme. It also lets holders vote on the future of the network.
YFI came out at the end of June while other bigger Defi protocols such as Aave and Compound followed with their own tokens that skyrocketed in value. The whole DeFi boomed after the governance tokens took off. More than $5.95 billion is locked in Defi smart contracts and when YFI was launched, about $1.68 million was locked. The increase of the token is second this week. The token first increased to $4,507 and then to $5,868 which was an increase of 30%. However, today’s rise could be the biggest yet.
The YFI DeFi token is among the one token that is most fairly distributed on the Ethereum network as the issue of centralization of coins remains. Three Arrows Capital’s Kyle Davies said he is extremely worried about the Gini coefficients. This is a metric that is used by international authorities to analyze the extent of wealth inequality in places across the world and in a group of people. Bitcoin is a good example of the potential for great inequality in crypto but we can surely believe that Satoshi Nakamoto had good intentions while creating it. However, he/she technically owns about 5.5 percent of all BTC wealth.
The relatively young cryptocurrency turned into a poster child for yield farming as the governance token of yearn.finance. Just a week ago, YFI became the second-most expensive token on the market with a value of $6000 and its growth rate is quite impressive as the community members are already wondering if it will be able to catch up and surpass Bitcoin.
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