To go along with the asymmetric skyrocketing bubble of DeFi,
another metric shows how lopsided some of these trends can be. From August 15
to now (August 20), the price of YFI has nearly doubled from a price of around
$4,500 to a current reading of a little bit less than $12,000, which constitutes
more than a 100% growth. At the same time, the number of total addresses to the
Yearn Finance protocol has only crept up 9% within the same timeframe. Without a
doubt, the craze is unproportionate to the underlying fundamentals. But needless
to say, this is all too common amongst these DeFi apps due to the earliness of
this technology.
In the past two days, the price of YFI itself has surpassed
that of bitcoin’s making YFI the most expensive cryptocurrency although its market
cap, $371 million, still pales in comparison to that of bitcoin’s, $217 billion.
YFI (Yearn.finance), the new yield aggregator DAO has only
been out for about a month and is already number 6 on the DeFiPulse list in
terms of TVL in smart contracts but still below Maker, Aave, Curve, Synthetix,
and Compound.
Like with in traditional markets as well, when a stock’s
price gets too high or overvalued, stock splits occur to level the playing field
for investors. Recently the same narrative has been brought up in Yearn.finance’s
community base with some advocating for a 10:1 split if the price of YFI
sustain’s above BTC’s for more than 10 consecutive days.
Well whether one thinks YFI is overvalued or undervalued,
the momentum still seems to be just beginning.
