After a parabolic rally Ethereums market for decentralised Finance (DeFi) has experienced in the past week, a sharp decline. Many of the Top players such as Chainlink (LINK), Synthetix Network Token (SNX) and Kyber Network (KNC) are the local highs sharply.
With the recent price action, many in the crypto space, the question of whether the DeFi-bubble burst. This may superficially be considered to be the case. But if you look then in more detail, certain symbolic valuations, it is clear that this is anything other than accurate.
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New Ethereum-Coin wins in a week 100.0000%
At least for now, the DeFi-investors remove themselves from the tried-and-tested investment LINK, and SNX, and focus their efforts on new players.
Last week, the developers of yearn have.finance (also known as iearn.finance), a recently introduced DeFi-platform Ethereum-based, their native Token presented: YFI. How many other DeFi-protocols of the Token was distributed via a “liquidity mining”-incentive system for the investors, the use of the protocols, the Coin received as a reward.
What is YFI however, unlike in the case of COMP Compound, or a similar Token: the fact, how could this rise far it is only a few days after its launch.
According to the prominent crypto-analyst and VC Investor Andrew Kang YFI is increased by $ 3,000 since its launch about eight days, 1,000-fold to 100,000 percent:
“YFI is now the second 1000x, which I’ve seen in the last few weeks. For those that make the mathematics in question: The Balancer Pool started at 3 dollars YFI, but CMC and Coingecko began only some time later, to pursue the prize.“
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Particularly absurd in the rally this Ethereum-based Tokens is that the main developer of Yearn in the Medium-to-Post-to-market assured fervently, that the tokens have no value. Here is an excerpt from the post:
“We have published YFI, a completely worthless 0 Supply tokens. We repeat, that it has a financial value of 0. There is no pre-mine, there is no sale, no, you can’t buy it, no, it will not be blank trucks, no, there will be no auction. We have none of that.“
As it turns out, has begged for the crypto market to trade differently and YFI loaded with a fully diluted market valuation of more than $ 80 million.
Has started the rally just starting?
With such a strong price performance, a price that penetrates gradually into the field of Bitcoin, and a Start, some people say that he repeats the BTC, has YFI provided on crypto-Twitter caused quite a stir.
Interestingly, most are not pessimistic.
Molly, who works in the crypto-space, and for their insights into industry trends in Asia, it is known, commented that YFI is the “hottest DeFi-project” in China:
“Pretty much all of the WeChat groups, where I am, to talk about YFI, and many people I know, trading with YFI. I would say that YFI is by far the hottest new Defi-project in the Chinese crypto-space“
Tony Sheng, formerly of Multicoin Capital, has published a Substack Blog with the title “YFI Ponzinomics”, in which he outlines that the asset has a Design that promotes the increase in the price.
The Blog outlined how the low circulating supply of Assets (currently a maximum of 30,000 Coins), Governance, Staking and “manipulated Pools” are driving the prices up.