Beefy Finance price prediction: Strong recovery expected for BIFI
BIFI is predicted to have a bullish breakout after the recent crypto crash
- What is Beefy Finance (BIFI)?
- How do Beefy Finance’s vaults work?
- The BIFI token
- BIFI’s price history
- Beefy Finance price prediction
Beefy Finance is providing investors with earning opportunities for a large range of crypto assets. It claims to have the highest, safest and most efficient decentralised finance (DeFi) protocol.
Investors flocked to BIFI as the token saw its value rocket from $10 to $3,000 within its first 12 months of trading. But the recent crypto crash has thrown BIFI off its game. However, forecasters’ Beefy Finance price predictions suggest this is not the end of Beefy Finance.
What is Beefy Finance (BIFI)?
There are many DeFi protocols claiming to offer the best earnings and annual percentage yield (APY). Beefy Finance said its platform allows investors to earn high APYs “with safety and efficiency in mind”.
The premise of the protocol is to give investors unparalleled earning opportunities. Its whitepaper said: “Beefy Finance automatically maximises the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem.”
Its unique product are “vaults”, where investors stake their crypto tokens and can earn a profit. Every vault will include a specific cryptocurrency that will need to be deposited and will offer varying yield rewards.
Located in Korea, Dunyak Pak is the brains behind Beefy Finance, he founded the protocol and is acting chief executive. He is also chief executive of the blockchain research company PiLab Technology.
How do Beefy Finance’s vaults work?
Once crypto is deposited into a vault, investors will receive a “mooToken” instead. Like Aave’s Atokens, these tokens are what signals to Beefy Finance that you should receive the specified APY. For example, if you deposit its native token BIFI into a vault, an investor would receive the interest-earning mooBIFI token.
Unlike some staking protocols, these tokens are not locked into the vault. Investors can choose to withdraw the tokens at any point.
The only catch to the Beefy Finance vaults system is its fees. The majority of vaults have a 4.5% fee attached to the rewards, which are distributed to BIFI holders, the protocol’s treasury and the vault creator. These are already calculated into the final APY figure that is specified on the vault.
The BIFI token
BIFI, Beefy Finance’s native token, is both an earning and governance cryptocurrency. The token can be staked to earn BIFI, ETH, BNB, and others. Its whitepaper states: “For all the vaults deployed on every blockchain, Beefy Finance has its native governance token $BIFI at its core.
"Platform revenue is generated from a small percentage of all the vault profits and distributed back to those who stake $BIFI.”
Investors can also use the cryptocurrency to vote on important platform decisions, such as whether to support Optimism, a new layer two blockchain.
BIFI’s price history
BIFI went live towards the end of 2020 and the token opened at $10.74 on 6 October that year, according CoinMarketCap. While it initially struggled to get momentum, it started surging at the beginning of 2021, along with the wider crypto market.
It climbed above the $100 mark for the first time on 17 January 2021 and continued this momentum further until it skyrocketed to $999 at the end of January and surpassed $1,000 the following month.
BIFI was then listed on Binance on 16 March. The same day it ballooned to its all-time high of $3,620.35.
The next few months proved to be volatile for the token. But it managed to sustain a rally in June, after launching a week-long event to mark a new vault with the CAKE cryptocurrency. A blog post published on Medium.com stated: “To celebrate the launch of our new CAKE vault, with 77% less fees, we’re running a whole week of [ask-me-anything] AMAs and [non-fungible token] NFT Giveaways with our Binance Smart Chain ecosystem partners, as well as a Launchpool Boost on the new pure CAKE Beefy vault.”
BIFI climbed to a daily high of $1,943.40 on 18 June, but gradually fell throughout the rest of the month. The cryptocurrency continued to trade sideways until the beginning of 2022.
Beefy Finance’s token managed to defy crypto’s bearish market at the start of this year. It surpassed the $2,000 barrier on 28 January and reached a peak of $2,651.72 on 15 February. However, May’s crypto crash has not been kind to BIFI and it dropped to a low of $399.41 by 12 May.
It has recently started rallying again after the protocol added 12 new vaults. This included a quad-stablecoin pool made up of USDD, BUSD, USDT, and USDC, which allowed investors to earn up to 62.5% APY.
At the time of writing, on 17 May, BIFI is sitting at $787 and is down 5% on the previous seven days. But what about a Beefy Finance price prediction?
Beefy Finance price prediction
While forecasters offer different outlooks, most of those making a BIFI coin price prediction suggest it will skyrocket it to a new all-time high. Take WalletInvestor as an example, which describes BIFI as an “awesome” investment and says it will surpass $1,000 to reach $1,381.15 in a year’s time. And its Beefy Finance price prediction for 2025 at the end of that stands at $2,746.160.
PricePrediction suggests the cryptocurrency will have to wait until 2024 before it can surpasses the $1,000 mark again, achieving an average for that year of $1,316.25. However, its Beefy Finance price prediction for 2030 says it could surge to $11,457.69.
One of the most bullish BIFI crypto price prediction comes from Gov Capital. It states the DeFi token could hit $4,790.69 in a year and a staggering $39,797.93 price point in five years’ time.
Meanwhile, DigitalCoinPrice’s Beefy Finance price prediction for 2022 predicts it will hold at an average $1,052.30 value. It is only thought to surpass $2,000 in 2028 (achieving an average of $2,536.47) and $4,000 in 2031 (with average price for the year of $4,085.86), according to its BIFI price prediction.
How many Beefy Finance are there?
There are 72,000 BIFI in circulation, out of a max cap of 80,000 BFI, according to CoinMarketCap.
Is Beefy Finance a good investment?
It might be. BIFI is claiming it is a safe platform to earn high rewards. However, its native currency has proved to be volatile. Cryptocurrencies are a risky asset and should always be thoroughly researched before being invested in.
Will Beefy Finance go up?
Most forecasters expect BIFI to eventually reach a new all-time high. Gov Capital goes as far to suggest it could eventually skyrocket to $39,797.93. But predictions are often wrong and investors should never purchase more crypto than they can afford to lose.
Should I invest in Beefy Finance?
BIFI is rallying as Beefy Finance has announced new vaults for investors to earn interest from. Yet, it has been struggling since the recent crypto crash, so investors should always proceed with caution.