Is Yearn.Finance (YFI) A Good Investment?

Introduction

YFI is the original cryptocurrency of the Yearn.Finance protocol. It is based on the Ethereum blockchain, open-source, decentralized finance (DeFi) lending protocol. A governance token permits users to choose in which area they want the protocol to direct. Since its launch in July, YFI, due to the protocol's focus on automated yield farming strategies, has become one of the most significant Ethereum-based tokens. In some ways, you could think of Yearn.Finance is a robot that always tries to find the best yields in Ethereum DeFi.

How does the YFI token work?

YFI Coin is the governance token of the Yearn Finance protocol. It can be used to decide for changes and other decisions in the protocol and its products. YFI holders can also stake their coins from the Yearn Finance platform to earn a portion of the fees collected.

YFI has a current supply of 36,000, and the total supply is currently restricted to 36,700 tokens, although token holders may vote to change this if they wish. When 30,000 tokens were airdropped to the protocol's early users as a surprise, The token was officially launched on 17 July 2020. YFI can be bought and traded on any one of the exchanges in the table below.

Financial Analysis:

Yearn.Finance price today is $35,874.31 with a 24-hour trading volume of $223,606,263. YFI price is up 0.9% in the last 24 hours. It has a circulating supply of 36 Thousand YFI coins and a total supply of 36.7 Thousand. At the time of writing this post (Oct 14, 2021), YFI's Return On Investment (ROI) over the past year was 109%, way over its similar projects' ROI that saw an average ROI of 224%. However, it underperformed compared to the market's top 1500 project with an average ROI of 12809%.

Projects with public Github account have more transparency and reliability. Regularly, investing in projects with multiple contributors and commits is considered a safer and better investment (this means they are busy working and building the project). According to its Github account, there are Five Contributors to the development of YFI.

Another critical factor in the success of any project is gaining public attention. Our data shows that YFI's Twitter account saw a growth of 21% over the last months in the number of followers, which is considerable. Also, the number of YFI Reddit subscribers increased by 30%. However, the Telegram channel users had a 6% growth over the last months.

Over the last five months, YFI's Market Capitalization rank followed an overall declining trend, starting at the rank of 67-80 on July-Aug 2021, reaching 95 in Oct 2021. However, by the time of writing this post, YFI's market cap rank is about 95, and its value is $1,232,682,219 Billion. Moreover, its liquidity score is 67% above the market's average score, making it relatively easier to sell in bear markets.

You are saying that Yearn. Finance (YFI) is the best cryptocurrency to invest in?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

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