The token price for the yearn.finance YFI native token surged past the price of Bitcoin as it braced an all-time high of 19950. While the market capitalization of the token remains a minute fraction of the Bitcoin market cap, this price comparison is more arbitrary than absolute.
DeFi continues to blow hot as interest in a decentralized financial product and its associated token continues to witness robust growth. This is a testament in the price surge of DeFi protocol tokens in the past weeks as Yearn.finance’s native governance token YFI rallied higher than the price of Bitcoin (BTC).
Crypto startup investor Ian Lee explained that YFI surpassing Bitcoin’s price is psychological and arbitrary.
“YFI ‘flipping’ BTC price is arbitrary & more psychologically than practically important. What is important is what yearn.finance is doing & Andre Cronje is building in DeFi.”
Even though YFI is not the first token to trade higher than the price of Bitcoin, however, YFI rally is considered phenomenal, thanks to the massive interest and trading volume accompanying the surge. Some mixed reactions have trailed the price rally thus far. While most traders anticipate a drawback, others perceive further upward momentum.
According to data from Defipulse, Yearn.Finance now ranks as the fourth largest DeFi platform with about $870 million locked in the protocol.
Yearn.finance Had Recently Published Its Security Audit
Decentralized Finance (DeFi) is one of the biggest blockchain-based products in the cryptocurrency space right now but it is not without its share of risk. An audit could be a step towards revealing vulnerabilities in the coding structure but it’s not without its inefficiencies that could expose users to a wide range of risk.
The founder of Yearn.Finance has finally made public the security audit of the project after withholding it for a couple of months. He explained that the reason for withholding the security report until now was to make sure that the public doesn’t get a false interpretation of the report:
“I always refused to publish the audits because I don’t want people to get a false sense of security because of them.”
The audit was published by Cronje on the project’s GitHub repository on August 19th. The security audit was carried out by popular auditors like Certik and Quantstamp within the period of February and July.
YFI Future Perspectives
Investors seem to be betting for a higher token price as many seem to trust the undiluted token value, mainly because the total token has been fully minted – no new token goes into supply anymore. On the flipside, YFI is perceived to be overpriced as its market cap is already catching up with other top leading DeFi protocols like Aave, Maker, and Compound.
The upward potential could be massive as Yearn.finance is already doing so much in the DeFi space as it launches yinsure.finance, a decentralized product that targets the DeFi insurance market.