Today, the price of Yearn.Finance (YFI), the platform’s governance token, reached a new all-time record of $11,275.
YFI shows striking growth
For those who have never heard of YFI, it was launched less than a month ago and was initially designed as a „worthless token“.
In fact, in a publication by Medium, Andre Cronje, the developer of Yearn.Finance, stated that the token had a „financial value of 0“.
However, today the token reached a new all-time high of $11,275 according to CoinGecko. So it would be normal to ask: what has generated such growth?
We can establish two possible explanations: First, the very nature of the token. The token was designed to have a total supply of 30,000 tokens, quite small by standard. In addition, 60% of them are currently blocked.
Consequently, more than half of YFI’s supply is non-liquid and therefore not on the market. And, as we well know, if demand increases while supply or supply remains the same, price increases will be generated.
In addition, the DeFi market has seen extraordinary growth, which explains the increased demand for the token.
However, these conclusions could be delicate, because they also tell us that, if investors start selling their tokens suddenly, the price could fall very quickly.
In this sense, the token’s valuation currently stands at $9,902, with an 18.56% growth during the last 24 hours.
YFI increases 50% thanks to the Binance effect
Chainlink is down 15%!
Recently we reported from Crypt Trend that Chainlink (LINK) would have reached a new high of almost $20, since then crypto has seen a drop of about 15%.
Clearly the main concern is whether the crypto streak should be ended. After all, crypto was among the best performing tokens in 2020, so what happened?
Look out! LINK is still the best performing token of the year.
At the moment, this could be the worst drop in crypto since the market collapse in March.
However, the main reason for the recent drop seems to come from The News Spy team, since, as Trustnodes reported, LINK seems to have been sold for $40 million this month, and in a non-transparent way.