So far yesterday, the price of DeFi blue chip YFI rose from $57,000 to a maximum of $95,000, an increase of more than 60%. Many believe this is due to Yearn’s new blue dog coin offering called Woofy, which has rubbed off on the animal coin craze and retail investors are scrambling to buy it.
Woofy is the anchor coin of YFI and is converted at the exchange rate of 1 YFI = 1 million Woofy. Since YFI is currently the most expensive token in the DeFi space, many retail investors have little incentive to buy, while the price of Woofy is 1/1,000,000 of YFI, which is cheap compared to the up to $80,000 YFI, and with the recent hype about animal coins, it looks easy to attract retail investors to scramble to buy.
Community frenzy, 1YFI = $1 million?
Woofy, in the shape of a small blue dog, was quickly embraced by dogcoin fans after its launch yesterday. Last night YFI surged all the way up to nearly $100,000 after breaking through $70,000 to set a new all-time high.
Some tweeter V even shouted to push the price of woofy up to $1. If so, according to 1YFI = 1 million wofy exchange, YFI price will go to 1 million dollars.
The disguised split of YFI is reminiscent of Berkshire Hathaway’s Class A stock, the most expensive stock in the world, with one share costing $430,000, which few investors can afford. To enable small investors to share in Berkshire Hathaway’s growth, in 1996 Warren Buffett created a Class B share for Berkshire Hathaway at 1/30th the price of a Class A share, which has since been split to become 1/1500th the price of a Class A share.
Previously, investors complained that the YFI price was too high and wanted to be split, but the project never found the right time to do so. This time, with the help of the hot animal coin disguised as a split, one has to admire that the team is also good at marketing in addition to technology and products.
Assisting uniswap V3
Hayden Adams, founder of Uniswap, was not positive about the launch of woofy as a bizarre way to transfer wealth from mere users to arbitrage bots and ethereum miners, but the move may be a positive factor in disguising the opening of uniswap V3.
Although it has been claimed that V3’s more efficient use of capital will attract more people to provide liquidity. However, data shows that a large amount of funds still choose to stay in V2. uniswap V3 went live on May 5 and has been running for a week. The current lock volume is $760 million and the 24-hour trading volume is $560 million. During the same period uniswap V2 had a locked volume of $8.84 billion and a 24-hour turnover of $2.27 billion.
The animal coins that appeared at this time brought a lot of money to uniswap V3 trading. Previously, animal coins such as SHIB and Akita contributed a lot of trading volume and fee income to uniswap V3. woofy made it to uniswap V3 today and quickly took the front page position, bringing $11 million in liquidity funds and $24 million in trading volume to uniswap V3.
Strong performance support
The expanding asset management scale and strong business revenue is perhaps a more valuable reason to study the rising price of YFI than the launch of Blue Dog Coin.
Yearn, the largest asset management platform on Ether, has grown the value of its locked-in assets nearly eightfold from $530 million at the beginning of the year to $4.55 billion today. During the same period, Ether and Bitcoin prices have increased by 4.8x and 94% respectively. This shows that there is an influx of new money coming in.
Depending on the current market, users can earn 1%-40% annualized returns on it.
Yearn’s revenue comes mainly from fees charged by yVault for deposited assets and generated earnings, including a 2% fund management fee and a 20% revenue share. According to yfistats, Yearn made a total of $10,996,100 in revenue in the first four months of 2021, compared to $50.34 million in total revenue for last year.
While Yearn’s revenue is not directly reflected in the price of YFI, Yearn’s move to buy back YFI with its revenue has positive implications for the price of YFI. until a new governance proposal is adopted to change this repurchase policy. Since the adoption of the new proposal, Yearn has made eight repurchases, for a total of 35.7 YFIs, at a cost of approximately $1.5 million.
Led by YFI, a host of DeFi blue chips such as UNI, SUSHI, AAVE, MKR, SNX and others have shined, with gains of 12%, 18%, 9%, 16% and 27% in the last 24 hours respectively. These tokens are all leading DEX, lending and synthetic assets, with mature products and good business support. This surge is quite like the return of the value coin king.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/yfi-soars-60-overnight-the-return-of-the-value-coin-king/
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