Yearn Finance’s native token YFI has been seeing significant capitulation as the price has dropped from an all-time high (ATH) of $43k in mid-September to today’s $13,875 USD value. Despite the -67.7% loss since the token’s ATH, the Yearn Finance project still has around $624 million total value locked into the platform.
Yearn Finance and the native token YFI has been a hot topic during the latter half of 2020. This is because the YFI token went from an all-time low of $739 on July 21, 2020, to reaching an ATH of $43k on September 12. In between that time, YFI saw a whopping 5,718% gain for anyone who held YFI at those times. Additionally, on August 29, the Yearn Finance project had around $967 million locked into the protocol according to Defipulse.com stats.
However, since these recent ATHs, both the project’s TVL (total value locked) and the native token’s value has plummeted. The project’s TVL has slid to $624 million in assets locked on Wednesday, October 7, 2020. That’s a large decent of around -35% since the August 29 TVL-ATH locked into the Yearn Finance project. The coin itself, YFI has lost a critical -67.7% since the September 12 ATH and has been sliding relentlessly since that day.
Some people blame the drop on the lack of trust in Yearn Finance founder Andre Cronje. Not too long ago the decentralized finance (defi) crowd witnessed a mishap with Cronje’s secret Eminence (EMN) project. “YFI has been getting creamed,” tweeted the crypto proponent Alex Krüger in regard to the declining YFI value. “Recent underperformance relative to other cryptos has been notable. One could argue it is the chart. But it is not. One can find plenty of equally poor charts across crypto. This IMO is the marketplace punishing YFI by removing the Cronje premium,” Krüger added.
Krüger also said:
The main reason IMO was Yearn’s blatant negligence around the EMN launch, and how poorly the aftermath was handled. Said so when it happened, not in hindsight…