Yearn Finance Price Prediction – Will Yearn Finance Rise in Value?

Last Updated January 25th 2022

18 Min Read

Forbes reported that the total value of assets locked in DeFi platforms like Compound, Aave, Uniswap and Yearn Finance grew more than 88x in a year. That is, from under $1 billion in May 2020 to $93 billion in May 2021.

This kind of growth has attracted a lot of investor attention which has helped to significantly skyrocket the growth in the sector. In fact, CoinDesk reports that the DeFi industry is now worth more than $100 billion.

One of the protocols pushing the DeFi uptrend is Yearn Finance, a host of protocols that make it easy for users to access several blockchain-based services. Yearn Finance which prides on its high annual percentage yields (APY), provides an opportunity for investors to make passive income through such services as lending and yield generation.

In this guide, we will be looking at some of the most recent Yearn Finance price predictions and whether it is a good addition to your portfolio.

But before that, let’s look at what exactly is Yearn Finance and why you should take it seriously.

What Is Yearn Finance?

Yearn Finance is a collection of DeFi products that run on the Ethereum blockchain. These products provide a host of services such as yield generation, insurance and lender aggregation.

The protocol is governed by holders of its native token, YFI, and is maintained by several independent developers. Currently, the products that make up the Yearn Finance network include:

Vaults
Earn
Zap
Cover

Let’s quickly go through each of these products to understand exactly what they do and how they holistically drive the Yearn Finance objective.

Vaults

Vaults provide a passive-investing strategy that enables YFI users to automatically generate yields based on the current market opportunities. In this case, the user doesn’t need to be knowledgeable about the underlying assets before they can invest.

There are several things that faults can help you to do. These include using different assets as liquidity, using liquidity as collateral, borrowing stablecoins and then putting them to work on some farming and also reinventing the earned stablecoins.

By investing in faults, you get such benefits as socialising gas costs, shifting capital based on market opportunities, and delivering automatic yield generation. As a result, you can easily make some passive income without having any expert knowledge of the underlying asset.

Earn

Earn is Yearn Finance’s first product and acts as a lending aggregator to help users get the best interest rates at any given time.

Here is how this works…

When interest rates between protocols change, the funds will automatically shift between such protocols as AAVE, Compound and dYdX. Keeping a manual track of these changes would be painstaking.

Luckily, with Earn, you won’t have to do that. All you have to do is deposit money through Earn then wait.

Earn will then analyze interest rates from various protocols then provide you with the highest rates at any given time. This way, you earn high yields without doing a lot of shopping around yourself.

Zap

With Zap, you can painlessly shift or ‘zap’ in and out of various liquidity pools that are available on Curve. Curve is an Ethereum-based liquidity pool created to enable highly efficient stablecoin trading.

Liquidity pools on Curve can earn profits in one of two ways:

Collecting user trading fees
Utilizing lending aggregators

Currently, you can access five stablecoins on Curve. These include BUSD, USDC, TUSD, DAI and USDT. You can also ‘zap’ into or out of either y.curve.fi or busd.curve.f liquidity pools into one of the five stablecoins.

Cover (yInsure)

This product provides insurance for Yearn Finance users in order to cover financial losses from protocols on the Ethereum network. Cover is underwritten by Nexus Mutual, an Ethereum-based community-driven platform that enables users to obtain insurance products for various blockchain assets.

Cover has three components. These are:

Cover Vaults
Covered Vaults and
Claim Governance

The Yearn Finance ecosystem is governed by YFI token holders through voting on various proposals.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Yearn Finance In 2021: Everything You Should Know

Like most other cryptocurrencies, Yearn Finance recorded significant growth last year both in terms of value and functionality.

The network announced that they had launched a new and improved Ethereum yVault. This was an improvement on the previous v2 yvETH vault. Several features were added to make the vault more secure and reliable. These include a more robust security infrastructure, incorporation of the latest Vyper version and miner extractable value (MEV) protection.

To achieve this, Yearn Finance combined the power of WETH and ETH into one vault, making it not only more effective but also easier to use.

This is just one of the few projects that YFI is working on this year to make the protocol more effective and attractive for investors.

In June 2021, Yearn.Finance announced on Twitter that it had surpassed $5 billion in assets locked across its products, up from $531 million at the beginning of 2021. That is a massive 841.62% growth in less than six months.

The most interesting thing is that $1 billion of that value was added in May 2021 alone. This is pretty impressive considering that it took Yearn more than seven months to get from $1 billion to $2 billion in TVL.

The most growth happened in May 2021 when Yearn reports to have earned over $10 million in revenue. That is an additional 34% MoM representing $123.12 million annualized revenue. Based on this, the Yearn Protocol makes roughly $400,000 per day.

This goes to show how quickly Yearn is navigating the decentralized finance ecosystem and positioning itself as a market leader.

Although the protocol’s figures recently dropped, we expect more growth to happen for the remaining part of the year. The protocol developers are working tirelessly to introduced new features that will not only make it easier for existing users to navigate but also widen its user base.

Now, before we can look at the various Yearn Finance price predictions for 2022 to 2025 and beyond, let’s quickly go through the price history to get an idea of how the protocol has grown over the years.

Check Out: Could Yearn.Finance be a Millionaire-Maker Coin?

Yearn Finance Price History

The FYI token is still pretty young in the crypto industry. The protocol was launched in July 2020 and quickly rode on the wave of governance tokens that were dominating the DeFi market. The token quickly attracted attention from cryptocurrency enthusiasts and investors, and within a month, it moved from $3 to $30,000; a pretty impressive rally for a new token.

Despite the short stay in the crypto market, YFI has created waves big enough to attract mainstream attention. While most new tokens start at an insanely low price, YFI debuted at a fairly high price. For instance, by the end of July, the crypto was already selling for more than $1,000 per token.

After the first month, Yearn picked up on another bullish momentum and by August 2020, it had crossed the $4,000 mark. This triggered a series of price swings in August that pushed the value of a single YFI token to over $15,000.

For instance, between August 15th and 20th, YFI jumped from $4,253.89 to $15,839, the token’s first major price surge. That is a 272% price increase in less than a week. This kind of parabolic growth attracted a lot of mixed reactions, with some people predicting an impending bubble-burst while others were confident that the price would keep rising. The latter group was right, by the end of August, YFI crossed $33,000 per token.

This was an impressive milestone considering that the leader Bitcoin, was trading at around $10,000 at the same time. But the growth didn’t stop in August.

By mid-September, YFI was towering at over $42,000, representing its highest peak since it started trading. At this point, the Yearn bubble had exhausted its elasticity, and several experts reported that a burst was imminent.

This came true towards the end of September when the token started on a gradual drop. By early November, YFI dipped below $8,000, but fortunately, the bearish adjustment didn’t take long.

Yearn Finance took advantage of the market-wide bull run that started in late 2020, and by the end of the year, it crossed $20,000 again.

The bullish run continued into 2021, where YFI started the year at $22,259 based on data from price tracker CoinMarketCap. Seven days later, it went over $30,000, making it one of the highest-priced DeFi tokens at the time.

There was a consolidation mode that lastest until February. After that, YFI crossed $50,000 around mid-February 2021, again becoming more expensive than Bitcoin. Between March and April, there was some slight volatility, but the price wasn’t affected that much.

YFI attained its current all-time high price of more than $93,000 after it rose from $53,000 in four days. But being such a huge leap, the price fell almost immediately, and by May 23rd, it had gone below $30,000, its lowest price for 2021.

Since then, Yearn Finance has gone through a series of uptrends and downtrends and is currently trading at slightly above $24,382.91, according to CoinMarketCap.

Now, most people, especially long term investors who are hodling, are wondering if the current uptrend will hold into the foreseeable future. To answer this, we have looked at several expert predictions for the next five years.

Let’s quickly go through them below.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Yearn Finance Price Prediction For 2022-2023

When it comes to 2022 and 2023, we might have to look at the technical analysis more deeply if we are to get a close number.

From what we’ve seen from several price forecasts, YFI still has a bright outlook in this time range.

Let’s start with Long Forecast.

The Economy Forecast Agency (EFA) is surprisingly positive about the future of Yearn Finance in 2022. Surprising because Long Forecast is usually conservative about the future of digital currencies and usually predicts downtrends more often than uptrends.

The site predicts that YFI will start the year at $193,83. The price will then decline gradually and close 2022 at $19,149.

For 2023 however, the site expects YFI to grow in price steadily. By September 2023, Long Forecast is hopeful that YFI will cross the $40,000 mark.

Wallet Investor begin 2022 on a higher note than Long Forecast. The site predicts the Yearn will kick off the year at roughly $33,434.50 per coin. But from there they also expect a decline in YFI prices for the remaining part of 2022.

Wallet Investor’s predicts decline for YFI's price in the beginning of 2023 - $23,125.70. The site doesn't seem too bullish for the rest of the year as well, having Yearn end 2023 at $2,741.04.

Let’s go even further and look at how experts think the token will play out in 2024 and 2025.

Yearn Finance Price Prediction For 2024-2025 And Beyond

Long Forecast predicts a rise in YFI price in 2024. As we’ve seen above, the site predicts that the token will end 2023 at $36,908. However, for the first 3 months of the year YFI price is predicted to drop. Starting May, the site predicts a growth cycle, with YFI reaching a high of $44,491 in October and ending the year slightly higher, at $52,960.

Long Forecast predicts a gradual drop for Yearn.Finance's price during 2025, staring the year at $51,488 and ending it at $31,197.

Wallet Investor foresees Yearn.finance's continuous drop in 2024 and 2025 as well. Things may pick up only after April 2025 and the asset will end 2025 at a price of $2,311.28, a considerable rise from 2024's ending price of $1,358.71.

On the other hand, Digital Coin price, is positive about the future of Yearn, a lot more than Wallet Investor. The site predicts that YFI will be worth $52,640.26 by the end of 2024 and $49,853.48 by the end of 2025.

Coin Price Forecast gives a close prediction to Digital Coin Price but doesn’t see much growth between 2024 and 2025. The site predicts that Yearn Finance might increase in price in 2024 and 2025. YFI will trade at $40,862 and $51,304 respectively.

Don't Miss: Yearn Finance Price Prediction for 2025 and 2030

Conclusion: Is Yearn Finance A Good Investment?

Yearn Finance is one of the fastest-growing DeFi projects, and it is definitely a good investment if it fits your portfolio. The YFI token had a slight drop recently but is quickly recovering and might potentially cross the anticipated $50,000 mark by the end of the year.

If the predictions we have seen above are anything to go by, Yearn Finance might have a great future in the crypto industry. The good thing with this investment is that you don’t have to solely depend on the profits you make by trading or hodling the YFI token.

You can also take advantage of other income streams from the products we mentioned at the beginning of this guide. Eventually, Yearn Finance will be a big player in the DeFi ecosystem, and when it finally sees mainstream adoption, it will be highly profitable for its investors.