- YFDOT has surged from just $13.1 to $132 in just the past 7 days.
- The token is a DeFi version of the legacy cryptocurrency Polkadot.
A new token is riding the decentralized finance (DeFi) wave all the way to the top, gaining an eye-popping 900% in just one week. Yearn Finance DOT (YFDOT) shot up from $13.1 to hit an all-time high at $132.
The rise to the top
YFDOT is a relative newcomer in the DeFi scene according to data from CoinGecko. The token has only been trading since October 13 when it debuted at $65.95. After a brief rise to $73.3, it shed over 80% of its value to trade just above $11 two weeks ago.
In the past 7 days, however, YFDOT has changed course, recording an incredible surge that saw it become one of the biggest gainers in the booming DeFi sector. It shot up to $136.6 on November 24, recording a 946% surge from just a week earlier when it traded at $13.6. The token has since then briefly corrected and is trading at $100.5 at press time. It’s available to trade on Uniswap, Hotbit, CoinTiger and DigiFinex.
YFDOT was designed as the DeFi token version of the ‘next-generation decentralized web platform’ Polkadot. The cryptocurrency is the ninth-largest in the world, worth $4.9 billion. The token is part of YFSwap, a platform that seeks to introduce DeFi farming to major cryptocurrencies.
In an October 4 blog post, YFSwap explained that it intends on eliminating the ‘rug-pulls’ that have tainted the DeFi sector. It stated:
There are no founder shares, no VC interest, simply a fair and equal staking distribution to attract a broad and vision-aligned community to steward the future of the protocol and token.
To further boost the price of YFDOT, the team intends to burn 15% of the total supply by the first quarter of 2021. The first 5% supply burning took place in Q3 this year, with the second one expected to take place before the year ends.
The DeFi boom
While eye-catching, the YFDOT rise to the top is not unique in the DeFi sector. The sector has seen projects shoot up to dizzying heights overnight. The most notable is yearn.finance, a DeFi token that took the world by storm. After launching in July, it shot up rapidly to achieve an all-time high that no other altcoin has managed – surpassing the price of Bitcoin.
Yearn.finance’s YFI token achieved the all-time high on August 20, and it hasn’t looked back since. At press time, it was trading at $23,612, over $4,500 above the price of Bitcoin. Some analysts predict that the YFI price could hit a price of $34,500 if it continues to hold above its 100-day simple moving average.
Despite flipping Bitcoin, YFI’s market cap stands at just $662,441 compared to BTC’s at $353 billion. This is because the token’s total supply stands at just 30,000. As cryptocurrency investor Ian Lee explained recently, the flipping is not as significant.