DeFi Altcoin on Ethereum rallies 50% in just two days, overtaking sideways crypto markets
An altcoin that helps holders generate returns sees its own value skyrocket even as the broader crypto markets try to extricate themselves from a recent meltdown.
The Yearn.Finance (YFI) Decentralized Funding Protocol (DeFi) offers lending and trading services so that users can maximize income from their crypto assets.
The price of the YFI token jumped 50% virtually overnight after rumors spread that Yearn had gone on a shopping spree by redeeming his own token.
Aspire said in a tweet to his 159,200 followers,
“Yarn bought YFI for $ 7,526,343 on the open market. We got 282.4 YFI (0.77% of total supply) at an average price of $ 26,651.
More YFIs were bought out last month than the year before.
Aspire reports that its treasury now holds over $ 45 million and intends to make more redemptions in the future.
In the investment world, companies often make buybacks when they feel their stocks are undervalued or to reward existing holders by reducing the total available supply.
This decision is paying off for the Ethereum-based protocol. YFI’s price fell from a weekly low of $ 18,877 on Wednesday to $ 28,802 at the time of writing, including an almost 20% rise that day.
When Yearn was first launched in July 2020, the YFI token was worth around $ 30, then skyrocketed to a staggering valuation above $ 90,000 in May before collapsing to $ 33,000 in A few days.
Like most crypto markets, YFI has experienced volatile price movements in recent months.
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