With Bitcoin controlling the crypto space in both price and market capitalization since its launch, one would expect the popular cryptocurrency to maintain its dominance in price over other digital assets.
However, the jinx of BTC price dominance has been shattered by decentralized finance (DeFi) project, Yearn.Finance (YFI), as the price of its native token, overtakes that of BTC in the early hours of today up to press time.
At the time of writing, the price of YFI is trading at $12,919.28, which is more than $1,200 above BTC’s $11,710.39.
The milestone sparked wild jubilation across different social media platforms, as proponents of the DeFi protocol celebrated the achievements of becoming the most expensive crypto asset in existence.
Many Yearn.Finance enthusiasts were seen on crypto Twitter using the “1 $YFI > 1 BTC” equation to describe the current situation of the industry, while others called the YFI token as the new gold.
$YFI price surge: What’s responsible?
Certain factors contribute to the recent price value of the YFI token, especially the token’s limited supply. The token was launched to have just 30,000 YFI as its total supply, as opposed to BTC’s 21 million.
At the time of its launch, the token was trading around $1,000. However, as the token gradually approaches its total supply, the price spiked rapidly. The token has almost reached its max, with 29,961 YFI currently in circulation.
In addition, since the launch of Yearn, the project’s developers are constantly releasing important upgrades that would be beneficial to its ecosystem and the entire DeFi market, including a planned insurance scheme dubbed Yinsure.Finance.
It is believed that the initiative would go a long way to boost the value of all ERC-20 tokens, including YFI, in the long run.