Yearn Finance Surges 45% Thanks to The New Dog Token
Yearn Finance price of leading cryptocurrency is up nearly 45% in 24 hours, and it appears to be thanks to the team’s new dog token offering a bi-directional peg to YFI.
YFI attained a new high of over $78,000 around 14:30 coordinated universal time (10:30 a.m. ET) and was near $74,500 at press time. A developer formed a dog token known as Woofy. The token is swappable for YFI tokens on a million-to-1 basis.
WOOFY’s exclusive obligation is to offer a way to redenominate YFI holdings. The Woofy Finance interface offering bi-directional YFI to WOOFY conversions at a ratio of 1:1 million helped bold buyers push the price of WOOFY very high to imply YFI’s to be $1.5 million per token.
The intention is to cash in on the current craze for canine coins. It also targets to appeal to individuals who feel that the YFI token’s five-figure price point is too high.
The hype over the new project began to going around on Twitter over the past 24 hours. Its users associated with Yearn were hinting at the new token called WUFFY. Rumors of an airdrop for users who posted a photo of a dog licking them and tag Yearn developer “Banteg” saw an outpour of face-lick pictures uploaded to Twitter.
The token’s price has seen more robust growth in recent weeks, tripling its price this year. Yearn has become one of the top places for DeFi users seeking passive yields to entrust their funds.
It gained mainstream fame in 2020 when it established its governance token, YFI. It joins the rally in recent months of cryptocurrencies linked to the fast-growing decentralized finance sector known as DeFi. The overall cryptocurrency market cap currently sits at $2.449 trillion, and Bitcoin’s dominance rate is 42.8%.
Yearn’s Fast Growth
According to the website DeFi Pulse, Yearn Finance has more than doubled the collateral locked into its protocol to almost $4.1 billion in April alone.
During the same period, the overall value locked in the DeFi market increased by 70% to $80 billion.
However, the token is still lagging behind its DeFi peers in price this year. So far this year, the native token of decentralized protocol Aave, AAVE, has spiked 700%, and MakerDAO’s MKR has risen 400%.
According to data aggregator CoinGecko, YFI has a minimal circulating supply, at about 36,000 coins. The limited supply explains why the token, with a market capitalization of almost $2.6 billion, has a higher price than the $56,558 bitcoin (BTC), which has a market value of $1.06 trillion.