Why The Price of Yearn.Finance Could Hit $400,000 Sooner Rather Than Later
There’s no question about it. Yearn Finance and its meteoric rise to the top 30 of all cryptocurrencies by market capitalization is taking the world of crypto and decentralized finance by storm.
The project is doing so well that data and analysis firm Messari has created an infographic that anoints Yearn as the Amazon of decentralized finance. Writer and analysis expert Lou Kerner echoes that sentiment and argues that someday soon, Yearn and its YFI token could be worth over $400,000 Canadian.
What Is Yearn and How Can It Possibly Be Worth So Much?
Yearn is essentially a decentralized asset management tool. It compares stablecoins, liquidity pools, altcoins and derivatives of the altcoins to each other and finds the best possible yields that a user can get. All in a decentralized fashion. This means that all the user has to do is decide which pools, stablecoins, loans, derivatives and yields they want to be associated with, and they earn the best rates possible according to their specific preferences.
Since Yearn’s inception, many copycats have come out of the woodwork. But Yearn and its founder Andre Cronje are doing something no cryptocurrency has done since Bitcoin was born. Cronje didn’t keep any tokens to himself. He let them be publicly available to whoever wanted to invest. Yearn is truly for everybody. No founders are taking a cut. That’s one of the main reasons crypto enthusiasts are embracing Yearn. The fact that Yearn is only made up of 30,000 tokens in circulation is another reason for the astronomical price per token. But that doesn’t speak to fundamental value. The fundamental value comes from Yearn’s competitive advantages.
Yearn’s Ultimate Competitive Advantage
Not only does Yearn help investors find the best annual yields and do all the legwork, it also has another fundamental advantage over most decentralized projects. The all-important first mover advantage. Yearn is the first of its kind, and is likely already doing enough to earn the respect of crypto enthusiasts, meaning it will be very difficult for another DeFi project to steal its thunder. Just as we’ve been waiting for 12 years for a single altcoin to surpass Bitcon’s value, we’ll likely be waiting a long time for a DeFi competitor to outdo Yearn.
That said, in a fast-moving world like cryptocurrency, having the first mover advantage only means something if you’re continuing to innovate. That’s exactly what Cronje is doing. Yearn is first and foremost an asset management platform, but it’s not just that anymore. Yearn now allows users to insure their DeFi holdings should anything bad happen. It also feeds into decentralized venture-capital opportunities, liquidity pools, loans and exchanges.
With its hand in so many pots, and the ability for the individual investor to take control and earn value on their holdings in a whole new and nearly hands-free way, Yearn is proving to be truly revolutionary.
Going forward, Yearn’s next implementations will incorporate major projects like Synthetix, Aave and Chainlink, meaning that its reach as an asset management protocol will only continue to grow. If there’s one thing we’ve learned about progressive investors over the last 12 years, it’s that they go wherever the profit is. At the moment, Yearn is consistently proving that the most efficient way to earn a profit is to use the Yearn platform.
Written by: Jack Choros
Writer, content marketing at Netcoins.