Since its launch on 17 July, Yearn Finance’s YFI token instantly became one of the biggest decentralized finance (DeFi) coins in the cryptocurrency market with impressive growth in price and market cap.
According to data presented by BuyShares.co.nz the market capitalization of the YFI token hit $690.1m at the beginning of this week, a 435% jump in a month.
From zero value to over $23,000
Decentralized finance offers various benefits compared to traditional financial services. Through the use of distributed systems and smart contracts, deploying a financial product or application becomes more secure and less complex. Many DeFi apps are developed on top of the Ethereum blockchain, which reduces operational costs and lowers entry barriers.
Although it was never intended to have any financial value, the price of YFI DeFi token skyrocketed to over $33,700 on 1 September, only a month and a half after it was listed on Uniswap. The CoinMarketCap data show this figure dropped by 30% in the last seven days, with the price standing at over $23,000 on Monday.
YFI has a limited supply of only 30,000 coins, which is why its price quickly exceeded that of Bitcoin. Statistics show that at the beginning of this week, the YFI token price was 127% bigger than Bitcoin’s price.
On July 30th, the market cap of the YFI token amounted to $123 million. In the next thirty days, this figure surged by more than 700% to $985.7 million. On September 1st, it peaked at over $1bn. Statistics indicate the market cap of the most expensive cryptocurrency globally dropped by $311.9 million in the last seven days.
More than $2.2bn in weekly trading volume
The CoinMarketCap data also revealed the daily purchase volume of the YFI DeFi token stood at close to $219,5 million at the beginning of this week, while the weekly trading volume amounted to over $2.2bn. Statistics indicate the combined value of YFI tokens traded in the last 30 days stood at $5.9bn at the beginning of this week.
The total value locked in the entire DeFi ecosystem hit over $7.9bn this week revealed the DeFi Pulse data. Statistics show Uniswap ranked as the leading decentralized exchange platform with $1.5bn in total value locked. Aave and Maker follow with $1.3bn and $1.2bn value, respectively. Yearn Finance ranked fifth, with $766.4 million in value locked, a 352% increase in a month.