The price of a single YFI token is now worth more than a Bitcoin.
YFI, the governance token that powers the decentralized finance protocol yEarn, or yearn.finance, today exceeded $ 20,000, breaking Bitcoin’s historical record.
The cost of a single YFI token is $ 22,686 to date. It increased by 25% in the last 24 hours, according to data from the metrics website CoinMarketCap.
YFI is a governance token, which means that holders can vote on policy proposals that influence the future of the yEarn network. But YFI is also considered a speculative asset, central to something known as “yield farming”, in which DeFi’s loan protocols offer governance tokens as incentives to use them.
All of this despite the fact that YFI token creator Andre Cronje described YFI in mid-July as “a completely worthless supply token”.
yEarn is a DeFi platform that allows users to compare yields between different DeFi loan protocols and earn extra income by placing their cryptocurrencies in vaults with other users.
Bitcoin is currently worth about $ 11,500. This means that the price of a single YFI token is almost double the price of a single Bitcoin. And it’s even bigger than Bitcoin’s all-time record: around $ 20,000 in December 2017.
One of the reasons why YFI is so valued is that its supply is very low. There are only 29,962 YFI tokens, small potatoes compared to the 18 million Bitcoins in circulation.