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Ethereum News Today – Headlines for August 26

  • YFI of Ethereum’s Yearn.finance protocol is one of the prominent coins in DeFi
  • The cryptocurrency might be undervalued compared to other DeFi protocols
  • YFI is the first crypto to post gains of 100,000% in one week

Ethereum News Today – the latest news relating to Ethereum is YFI as the native governance token of Yearn.finance, has quickly become more popular. Yearn.finance is an Ether-based DeFi protocol that has grown popular despite just launching only a few weeks ago. YFI reportedly made headlines after it became the first digital currency to appreciate by 100,000% in just a week.

Additionally, it also became popular for becoming the first reputable digital currency to surpass the price of Bitcoin. The YFI token is currently trading for $13,500. It managed to surge to the $16,500 mark last week. What’s absurd about YFI’s rise is that the coins’ creator, developer Andre Cronje. He launched the token based on the premise that it was a “zero value coin.” YFI currently holds a market cap that rivals some top crypto projects.

YFI Maybe Undervalued When Compared to Other DeFi Protocols

After posting the above record-setting rally, analysts predicted that the crypto may be undervalued. They claim this is the case when it is compared to other tokens in its class. Paramount to Yearn.finance is a DeFi concept known as “Vaults.” Vaults pools are used to deposit certain cryptos (the bulk of stablecoins are supported) to earn on their holdings. They earn yields.

Yields are generated when a “controller” uses the best farming strategies for the cryptos in the pools. Even though Vaults offer a great benefit to users of the service (the fact that it offers yearly returns of between 9-90%, makes it beneficial to YFI holders as they charge performance and withdrawal fees on user holdings). The fees charged are automatically transferred to a treasury that is under the control of YFI holders.

Currently, Yearn. finance Produces Cash at $21 Million Annualized

According to one analysis by Ryan Watkins an analyst at Messari, currently, Yearn.finance makes cash at $21 million annualized. The analyst also explained that these metrics mean that the YFI token has great potential (because it can be used to control and get access to capital in the pool). It also has 20 times price-to-sales multiple.

In 2 months Yearn went from an unknown lending aggregator to a whopping $390 million industrial level yield farming machine. It is now returning more than $20 million per year for YFI holders. Meanwhile, the Ethereum network has continued to deal with the issue of rising transaction fees. Despite strong metrics, the network’s price was in an awkward position in the last 24-hours of trade.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she’s not writing, she spends time with her adorable cat, Ginger and works out often.

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