Coinbase Effect Hits DeFi as yEarn’s YFI Token Surges 10% On Pro Listing News
YFI token shot up when Coinbase announced its listing plans. (CoinGecko)
Coinbase Effect Hits DeFi as yEarn’s YFI Token Surges 10% On Pro Listing News
A coming listing on Coinbase Pro has brought a boost to yEarn.Finance’s already highly priced token.
- The YFI token soared an additional $6,000 – more than half the current price of a bitcoin – on the news it will be listed on the more advanced level “Pro” exchange.
- Coinbase announced Thursday it will begin accepting deposits for the decentralized finance (DeFi) coin on from next week.
- In response, YFI tokens jumped approximately 10% from just over $29,000 to nearly $35,000 in the space of a couple of hours.
- Most tokens listed on Coinbase have experienced, to varying degrees, a market increase in price, a market phenomenon called the “Coinbase Effect.”
- Today’s market movement shows the Coinbase name, once closely associated with its reputation for listing very few digital assets, still carries considerable influence in the cryptocurrency market.
- YFI has since tracked back slightly to $32,800 by press time.
- yEarn is a decentralized investment protocol that identifies and executes various DeFi-related trading strategies using digital assets deposited by users.
- Since launch in June, total value locked in yEarn has skyrocketed from $2.5 million to well over $1 billion at press time, according to its website.
- Liquidity providers receive YFI tokens for providing certain tokens and give holders a say on the direction of the protocol.
- Since it began circulating in mid-June, the token has moved from approximately $800 to its current valuation – making it one of the most valued tokens in the digital asset class by price.
- Although the price of an individual YFI token is roughly three times that of a single bitcoin, there are only 30,000 YFIs in circulation, meaning its $983 million market cap is dwarfed by bitcoin’s $190 billion cap.
- yEarn’s founder, Andre Cronje, unveiled a whole new protocol this week that would allow users to borrow digital assets from a liquidity pool, using staked stablecoins as collateral.
- Coinbase Pro said it will launch the yEarn order book in four phases once there’s enough liquidity, and will only open up full trading once it’s satisfied there’s a “healthy and orderly market.”
- Excepting New York State, YFI will be available in all existing Coinbase jurisdictions. The exchange has not yet confirmed whether YFI will be listed on its retail-orientated exchange.
- Coinbase listed the “COMP” governance token from Compound in mid-June – which in the frothy market conditions at the time contributed to its price spiking to over $350 before it corrected back to $200 just days later.
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