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the only Altcoin more expensive than Bitcoin

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YFI's price recently soared to its all-time high of $ 16,398, making it the preeminent altcoin to beat the price of Bitcoin, in an interesting case that experts have called arbitrary and psychological.

The peak of the YFI token of yearn.finance has been fueled by growing demand for DeFi platforms that offer liquidity mining with huge interest earnings in a trend that is becoming a popular aspect of decentralized finance.

As one of the three tokens that Yam Finance borrowed its concept from, the rapid rise in yearn.finance began in early August with much speculation that the price may go either way.

YFI is a new DeFi protocol that was released by developer Andre Cronje in July as the first non-mined DeFi platform on Ethereum, giving stakeholders the full power to rule the network.

Since then, it has evolved into an ecosystem of protocols that aim to maximize Annual Percentage Yields (APYs) for its stakeholders and play an important role in expanding the agricultural yield frenzy that began with Compound (COMP).

YFI's price has steadily risen driven by three main factors: its new yInsure Finance role, the hype from industry executives, and the explosive growth currently taking place in the DeFi sector.

YFI's market capitalization is 568 times less than Bitcoin's

Currently, the total locked value (TVL) in annual finances amounts to 779 million dollars, according to data from Defipulse. One of its most unique features that is also responsible for its high price is a limited money supply of just 30,000 YFI, which is significantly lower compared to many other crypto assets.

This makes it possible for YFI to go as high as $ 12,000 even with a market capitalization of approximately $ 400 million, ranking 45th in the global cryptocurrency market. Out of the 30,000 supply cap, CoinMarketCap data indicates that there are 29,962 YFI tokens in circulation, making their growth potential high due to their almost fully minted supply.

But according cryptocurrency investor Ian Lee, YFI's ability to outperform bitcoin while having much lower market capital is therefore of questionable significance.

“The price of $ YFI“ flipping ”$ BTC is arbitrary and more psychologically than practically important. The important thing is what @iearnfinance is doing and @ AndreCronjeTech is building on DeFi ”.

However, if yearn.finance were to reach a similar market capitalization to other DeFi platforms like Maker, Compound, or Aave, its small offering could drive YFI's price to $ 30,000. In short, there is little comparison between Bitcoin and YFI, as Bitcoin's market capitalization is 568 times greater.





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