Yearn Finance Price Prediction – Will Yearn Finance Rise in Value?
Forbes reports 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 $88 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:
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 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 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…
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.
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.
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.
Yearn Finance in 2021: Everything You Should Know
Like most other cryptocurrencies, Yearn Finance has recorded significant growth this year both in terms of value and functionality.
The network recently announced that they had launched a new and improved Ethereum yVault. This is an improvement on the previous v2 yvETH vault. Several features have been 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.
Recently, 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 where 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 2021 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.
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 $88,000 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 $34,000, 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.
Yearn Finance Price Prediction for 2021
2021 is already halfway through, so making price predictions has become much easier. However, being a volatile market, predicting the price of cryptocurrencies even for the next month can be a challenge.
While we might not get accurate or even close to accurate figures, these predictions help us get a general idea of where an asset is headed..
The rest of 2021 doesn’t look bad for Yearn Finance, even though we’ve been seeing some unpredictable price swings lately. For now, the future prospects remain hopeful, and most price analysts are positive that the protocol is ready for another uptrend.
There are also those who believe that YFI might continue on the current downtrend before looking up in the next few months. For instance, Long Forecast predicts that YFI will keep dropping until September of this year.
After that, it will take on a gradual uptrend and close the year at slightly above $50,000. Long Forecast is usually a bit conservative and sometimes slightly bearish. However, for Yearn Finance, the price analyst seems to be hopeful that the digital ‘Robo adviser’ will finish the year on a fruitful note.
Wallet Investor is even more hopeful and predicts that YFI will be worth more than $63,000 by December 2021. The site forecasts a gradual price increase, with a few drops along the way, that start from June to December this year.
Unlike Long Forecast, Wallet Investor believes that Yearn Finance will start July at a higher than the current price. This a few dollars above $40,000 in July which increases gradually to above $50,000 in early September. The price will then reach $60,000 in late September and finish the year at $63,679, which is about $13,000 more than what Long Investor predicts for the end of 2021.
Digital Coin Price is more in agreement with Long Forecast than Wallet Investor. According to the site, the protocol will be worth about $52,327 by the end of 2021. This is closer to what Long Forecast predicts.
On the other hand, CoinPrice Forecast seems to lean more towards Wallet Investor’s prediction. The crypto price tracker believes that YFI will finish the year at roughly $59,527.
Although these predictions differ, they all give one signal; Yearn Finance will be at least $50,000 per token by the end of 2021. While this is still lower than the asset’s current ATH, it is a good number considering that it has been struggling to break out of its resistance level for some time now.
This means that we can expect even better numbers from 2022 going forward. Let’s look at some of the predictions for 2022 and 2023.
Yearn Finance Price Prediction for 2022-2023
We mentioned above that making YFI price predictions for 2021 is easier now that the year is closing in. However, 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.
For 2022, Long Forecast maintains the bullish momentum that starts in November 2021. The site predicts that YFI will start the year at $54,147, which is a huge leap from the$50,000 it ends 2021 with. The price will then grow gradually and close 2022 at $71,946. However, that will not be the highest number for the year.
In July and August, the token will cross $73,000 and $85,000, respectively, then $75,000 in November. So, the December price will actually be the start of a downhill momentum that will continue until May 2023. From June, the price will start rising again with huge spikes between the months. By December 2023, Long Forecast is hopeful that YFI will cross the $100,000 mark.
Wallet Investor begin 2022 on a higher note than Long Forecast. The site predicts the Yearn will kick off the year at roughly $63,866 per coin. The price will then go into a short consolidation mode until around March 20s, when it hits the $70,000 mark.
From April, the price will grow gradually, increasing from month to month, until it hits $100,000 around mid-October. So, while both Wallet Investor and Long Forecast agree that YFI might reach $100,000 in 2022 or 2023, the former is hopeful that the milestone will come much sooner. In fact, Wallet Investor predicts that Yearn will be worth a whooping $109,158 per token by the end of 2022.
Wallet Investor’s bullish prediction will continue into 2023 where YFI will start the year at more than $108,000. From there, it will go on another stable upswing to cross $120,000 by late March.
Towards the end of June, it will reach $130,000, then when 2023 comes to an end, Wallet Investor predicts that Yearn Finance will be worth a staggering $154,108 per token.
Now, this is a really bullish forecast, and even though we don’t expect the movement to be as accurate, we get the picture that YFI might be in for a bright future. 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 drastic drop in YFI price in 2024. As we’ve seen above, the site predicts that the token will end 2023 at above $100,000. However, at the start of 2024, the price drastically drops to $84,420 and keeps dropping for the most part of the year.
The lowest price will be in November, when Yearn goes down to $47,499. But after that, it rises again in December 2024 and keeps doing so in 2025.
At the start of 2025, Long Forecast predicts that YFI will be trading at almost $64,000. The uptrend continues until the token crosses $100,000 again in June 2025. Long Forecast’s prediction ends in July, where Yearn might trade at well over $118,000.
Wallet Investor starts 2024 at a much bullish note. According to the site, Yearn Finance will continue with its 2023 momentum and kick-off 2024 at $154,438. As you can see, this is way higher than Long Forecast’s numbers which indicates a bearish adjustment in 2024.
Wallet Investor predicts a stable upswing with small drops along the way for the rest of 2024. The predictions indicate that YFI will cross the $170,000 mark in May and touch $200,000 by the end of the year.
It will then start 2025 at the same price it ends 2024 with. 2025. WI predicts that 2025 will mostly be above the $200,000 mark, and by the end of the year, we might see the coin at over $245,000. This is a pretty bullish prediction, and if it were to come true, the current investors would have a lot to smile about.
On the other hand, Digital Coin price, although still positive about the future of Yearn, is not as optimistic as Wallet Investor. The site predicts that YFI will be worth $80,484 by the end of 2024 and $101,151 by the end of 2025.
Coin Price Forecast is slightly more bullish than Digital Coin Price but doesn’t see much growth between 2024 and 2025. The site predicts that Yearn Finance might trade at almost the same price in 2024 and 2025. That is $126,186 and $126,623 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.
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