For the longest time, Bitcoin has been known as the king of the crypto-market for owning the largest market capitalisation and having the most expensive price. Now, it has lost one of those titles.
YFI is the native asset of Yearn ecosystem which has risen to popularity during the recent DeFi craze. Yearn.finance is a DeFi yield aggregator that allows its users to capitalise on the best current yield offered across DeFi.
YFI worth $0 or $12,000+?
When the project was launched, which remains in its Beta phase, Yearn explained the following: “In further efforts to give up this control (mostly because we are lazy and don’t want to do it), we have released YFI, a completely valueless 0 supply token. We reiterate, it has 0 financial value. There is no pre-mine, there is no sale, no you cannot buy it, no, it won’t be on uniswap, no, there won’t be an auction. We don’t have any of it.”
However, the market majority disagreed with that statement and sent YFI’s price all the way to $16,000+ and has been listed on centralised exchanges Binance and FTX as well.
Similar to Bitcoin, the YFI supply is limited. But it is limited to an orders of magnitude smaller number. Instead of 21,000,000 that number is only 30,000. This sort of supply is very rarely seen in the crypto-world but is partly what made this asset extremely expensive when the public decided it had worth. At its peak, the market capitalisation of YFI was close to $500,000,000 which easily put it in the top 50 crypto-assets by market cap.