Those who follow the discussions in the cryptocurrency segment of Twitter may have noticed that over the past few weeks, a number of popular accounts have drawn attention to the discrepancy between the increase in the volume of fixed assets (TVL) in the yearn.finance project and the behavior of its token on the market. After a while, the bet was played. yearn.finance's own token (YFI) gained 16% today and reached a new absolute high at $ 51,641. The growth in three weeks is 70%.
YFI became one of the first assets of the decentralized finance space (DeFi), which began to grow rapidly last summer, and also attracted attention due to the higher cost per unit compared to bitcoin, which at that time was still trading around $10,000. The YFI reached another high in February, slightly below the current levels. This happened after the hacker attack, when the attackers withdrew $11 million from the project's pools. Soon, the asset moved to a consolidation of about $30,000, losing out to many other DeFi projects that continued to grow at this time.
The rise in the exchange rate is accompanied by an increase in TVL, a key metric for a DeFi project that reflects its demand among users. Recently, the value exceeded $3 billion for the first time. Only six DeFi projects have a TVL above this value, but the growth rate is remarkable in this case.
"Many people didn't know about the dramatic rise of TVL, because several sites displayed it incorrectly. The team started to publish TVL independently, and now it is about $3 billion, " said Alex Svanevik, the founder of the analytical platform Nansen.
So, DeFi Pulse, the most popular resource for tracking TVL, currently puts yearn. finance in the last place in its rating with an unknown value and a note about the inactivity of the" adapter " for monitoring. YFI investors believe that the asset is undervalued by the market at the current TVL. The capitalization of YFI is now $1.8 billion, which allows it to occupy the 70th place in the list of the largest crypto assets.
In addition, yesterday the developers announced the launch of a campaign to buy back YFI tokens at the Gnosis auction. For this purpose, $300,000 in USDC stablecoin was allocated from the project's reserves. However, it remains likely that these assets will not be distributed by the end of the auction in two and a half days. According to the condition set by the developers, the price of YFI during the auction should not rise above $45,000. At the time of the announcement, it was still below the market, but now few investors will want to sell at this rate.