The growth of the decentralized finance (DeFi) sector presented many lucrative earning opportunities for the savvy trader, and yearn.finance enabled the less technically-minded to get in on the action too. Yearn is a decentralized ecosystem of aggregators that make yield farming more accessible by automatically maximizing profits from various DeFi protocols such as Aave, Curve, and Compound.

The project has seen huge growth since its February 2020 launch, and in July 2020, yearn.finance introduced the YFI governance token. The price of YFI has experienced some of the most dramatic changes in the crypto space and if you want to know why then you’re in the right place. We’ve compiled everything you need to know about YFI’s price – as well as the factors which influence it.

Yearn Finance Price History

There was no pre-mine, pre-sale, or team allocation of [guidelink yfi], and it hit the market on July 18th, 2020 trading at $32. YFI made incredible gains right from the start – just one day after its launch it flew past $1,000 and had surpassed $4,000 before August even began.

The first half of August showed some consolidation, but in the second half, YFI made gains of 650% to peak at just shy of $40,000 on the last day of the month. This was when yearn.finance’s market cap first hit $1 billion. In the first week of September, YFI experienced a pullback which saw prices halve, but in the following week, another spurt of momentum took YFI up to a new high above $44,000.

This was followed by a crash back down to about $20,000, and after retesting $30,000 towards the end of September, YFI price declined throughout October until it bottomed out at around $7,000 on 5 November.

The trend reversed at that point and by 20 November, YFI had climbed back up to $30,000. There followed a month of consolidation and YFI ended the year with a price of $22,793.26. Though this was little more than half of its peak value, it still represented incredible gains of over 70,000% since its launch.

2021 saw yet more growth. By January 9th, YFI had reclaimed its $40,000 foothold, after which came another month of consolidation. In February, fresh momentum caused YFI to surge 75% in the span of four days, hitting its all-time high of $54,145 on February 12th, 2021. At this point, yearn.finance’s market cap had reached $1.8 billion.

The rest of February showed a retracement and prices dipped below $30,000 on the last day of the month. The rally only started again at the end of March, and by 10 April 2021, YFI was worth $45,000. This represented year-to-date gains of almost 100%, and gains since launch of an astounding 140,525%.

Analyzing Yearn Finance Price History

YFI’s price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves using various indicators while studying price charts in order to make sense of previous price movements. With YFI, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges.

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. In November 2020, Yearn Finance announced mergers with Cream and Cover. These activities were aimed at optimizing the platform and may have helped stimulate the growth which followed.

Broader market trends may also have played a role in YFI’s price history. Its pullback at the start of September wasn’t unique, as most cryptocurrencies experienced a price drop around that time. Likewise the gains made at the start of 2021 were common across the market. Bitcoin was already in the midst of a major bull run at that point, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

The overall price trend of YFI tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of Yearn Finance (YFI)

A variety of different things can affect the price of YFI, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency and global economies.

YFI has a capped max supply of 36,666 YFI, practically all of which is already in circulation. This means that YFI is fully diluted and its price may be driven by its scarcity, similar to Bitcoin. As the supply of YFI is constant, any increase in demand should lead to an increase in price.

One possible driver of demand is the governance rights that YFI provides. Anyone can propose changes to yearn.finance, but in order to vote on them you have to hold YFI. YFI holders have the power to make decisions that affect their own earning potential.

One such decision was the choice to give YFI holders a portion of the protocol’s profits. yearn.finance charges fees of 0.5% for withdrawals and 5% for its Vaults service, with nearly half a million dollars in fees being accumulated just in the first week that YFI was on the market. The chance to earn these rewards further drives demand for the token.

Live Yearn Finance Value and Market Cap

The live price of YFI varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given YFI’s volatility, its live price can change by a large amount in a very short space of time. The market cap of Yearn is equal to the price of YFI multiplied by the number of YFI in circulation.

Yearn Finance Price FAQ

How is the price of YFI calculated?

YFI’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying YFI than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of YFI different on different cryptocurrency exchanges?

YFI’s price is based purely on trading as there is no standard global YFI price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

Will the max supply of YFI ever change?

The YFI supply is currently capped at 36,666 YFI. However, the protocol is governed by YFI holders and they have the power to increase the max supply if they so wish. This has already happened as YFI was initially launched with a fixed supply of 30,000 YFI.

What will YFI be worth in the future?

It’s impossible to make price predictions with any kind of certainty as a whole host of different things could impact YFI’s future value. However, if the yearn.finance protocol continues to grow and generate more fees, it seems likely that greater demand for YFI will cause its price to increase.

Conclusion

YFI’s price history has been dramatic as it made some of the most impressive gains seen in the entire crypto sector. From being worth $32 at launch, YFI skyrocketed to an all-time high of over $54,000 in February 2021. That journey wasn’t smooth, however, as YFI’s volatility led to many surges and crashes along the way for active traders to take advantage of.

A number of different factors have played a role in determining the price of YFI, including developments of the yearn.finance protocol, YFI demand for earning protocol fees, and trends in the rest of the crypto market. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

If you want to get started with the most user-friendly trading experience on the market, register with Kriptomat today to begin your journey into the world of Yearn Finance and cryptocurrencies!