DFI.money price prediction: What is DFI.money (YFII)?

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Can YFII recover from its recent downturn?

DFI.money                                 
DFI.money is in pretty short supply – Credit: dfi.money
                                

The DFI.Money protocol aims to help people with yield farming. But what about its native token, DFI.money (YFII)? Let’s see if we can find out, and take a look ats DFI.money price predictions, too. 

DFI.Money explained

DFI.Money and its native token, YFII exist because of a hard fork from the Yield.Finance (YFI) protocol. The idea behind Yield.Finance and, by extension, DFI.Money is all about optimising yield farming.

This is “the practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency”. In other words, it involves moving crypto around different marketplaces in an attempt to generate the maximum amount of  interest. 

The issues with yield farming are that it can be complex and expensive if you do not move your crypto to the right platform in time. What DFI.Money wants to do is to automate the process of finding the marketplaces with the best yield across decentralised finance (DeFi) platforms.

Yield.Finance was originally launched in early 2020, with the system’s native token, YFI, coming onto the market in the summer of that year. By July 2020, the process of mining and farming the token ended. At that time, there was a proposal to protect the token from so-called crypto whales, big speculators who gobble up lots of crypto, often influencing market trends.

While the suggestion won with 80% of the vote, it was not passed because the quora of 33% of YFI holders did not participate. There was, however, a move by some supporters of the plan, who instituted a hard fork, creating a new protocol called DFI.Money, with a new native token, YFII.

YFII supports the project, and can be bought, sold and traded on exchanges. There is a maximum supply, according to the white paper, of 40,000, all of which were mined by September 2020. The amount that could be mined or farmed reduced every week, which was the idea behind the proposal that split YFI and created YFII.

YFII operates on the Ethereum blockchain, which means that it is, technically, a token rather than a coin, although you will still see references to the DFI.money coin. It is also worth noting that the white paper says that YFII “has zero financial value”, although the market disagrees.

There is no clear list of who exactly founded DFI.Money. This may not automatically be a bad thing (after all, plenty of well-established cryptos, including Bitcoin, have either pseudonymous or anonymous founders), but it might be an issue for investors who want to know as much about a crypto as they can before investing.

YFII price history

Let’s take a look at YFII’s price history. While past performance is never any guarantee of future results, knowing what a cryptocurrency has done in the past can help us when it comes to both making and interpreting a DFI.money price prediction. 

When YFII first came onto the open market in the summer of 2020, it was worth around $1,000. While its price initially plummeted to an all-time low of $96.29 on 3 August that year, it soon recovered and, less than a month later, on 1 September, it was trading at an all-time high of $9,385.42. It quickly fell back from this position and by the end of the year it was worth around $1,600.

The first few months of 2021 were a real boom time for crypto and, to a certain extent, YFII got caught up in the action. The coin moved upwards, with peaks and troughs, and even managed to top $3,000 at various points in February, April and May. During the summer, it spent most of its time oscillating around $1,500, with the low point coming on 22 June, when the token was worth $1,334.30.

In August, the crypto market recovered, boosted, at least in part, by a growing interest in non-fungible tokens (NFTs). YFII responded and, by the end of the month it was worth $6,330.34, down slightly from 31 August’s intraday high of $7,629.82.

Sadly for investors, any hopes that it would go back to match, or even beat, its all-time high were soon dashed and by the end of September it stood at $4,041.38. October was worse, closing at $3,769.76, while November saw a little bit of recovery as the market went bullish in the wake of bitcoin reaching new heights, with YFII reaching $4,408.32 on 8 November.

However, things went downwards as the market shrunk, prompted by concerns about the Omicron variant of Covid-19, and it ended the month at $3,470.11. December saw the downturn continue and the token closed the year at $2,810.18. 

So far, 2022 has been a tough year for crypto and YFII has been one of many coins and tokens that have done poorly. January saw the token fall to $2,353.08, while any hopes investors may have had in February were nixed as soon as Russia invaded Ukraine and the price, which had already fallen under $2,000, dropped to $1,614.27 on 24 February.

There was some recovery in March, with a periodic high of $2,432.85 promising a return to form, but the price stalled and China’s crypto ban meant it fell back under $2,000 on 11 April.

The really bad news came in May, though. It fell below $1,000 on 9 May and the market turmoil caused by the depegging of UST and the collapse of LUNA meant that, on 11 May it met a low of $896.67. While investors will have seen it rise above $1,000 a couple of days later, on 2 May it dropped from $1,221.97 to $375.93, a fall of nearly 70%.

The token recovered to close the day at $754.60, but soon fell down again and, on 27 May, YFII was worth about $585. It remained around this level until 23 June, when it rocketed up to close the day at $883, and the growth continued over the next few days, with the crypto reaching a peak of $2,288.28 on 25 June. After that, though, there were some losses to see YFII stand at below $1,000 for a while, before a recovery saw it stand at about $1,450 on 20 July.

At that time, there were 38,596 YFII in circulation out of a total supply of 39,375. This gave it a market capitalistion of about $56m, making it the 364th largest crypto by that metric.

DFI.money price predictions

Before we look at DFI.money price predictions, keep in mind that cryptocurrencies are highly volatile, which means there is a very real likelihood that the forecasts are wrong. Also, longer-term crypto price predictions are very often made using an algorithm, which means they can change at any time.

CoinsKid has a YFII price prediction which says the token should be able to cash in on its recent growth this year, and reach $2,147.87 by the end of 2022 before rising to $2,160.46 in July 2023.  A year on from then it should hit $4,556.70 while the site’s DFI.money price prediction for 2025 sees it start the year at $5,177.21, moving to $5,647.65 in July and closing the year at $9,936.63. In July 2026, YFII should be worth $10,729.08 before it continues its rise to hit $12,136.92 in October, the sitye predicts.

CaptainAltCoin has a DFI.money coin price prediction that says it should drop to $964.95 in October 2022 before recovering to trade at $1,712.79 in July 2023. In 2025, YFII should be worth about $2,854.64, but that is as good as things will get and, by July 2027, it should be worth $0, becoming at the very least a de facto dead coin, the site believes.  

PricePrediction.net in contrast is very positive indeed, at least in the medium and long term. The site has a DFI.money price prediction for 2022 which sees it drop to $1,425.33, while it says that the token should then recover to reach $2,173.97 in 2023, $3,189.83 in 2024 and $4,458.38 in 2025. The site argues that YFII will be worth $5,935.30 in 2026 before going to $8,622.57 in 2027 and $12,773.35 in 2028. The token should close the decade at $18,922.26 and there is a DFI.money price prediction for 2030 of $27,492.10 before it reaches $39,943.21 in 2031. 

Finally, WalletInvestor says that YFII should fall down considerably from where it is now over the next 12 months and, in July 2023, it should be worth a little under $78.10.

Final thoughts

We do not know for sure who is behind DFI.Money. While that is not automatically a bad thing, it might well discourage potential investors who want transparency from their cryptos from putting their money in YFII.

Second, while the price of YFII is relatively high, that does not mean that it is because the token is valuable in and of itself. Rather, it is a reflection of the comparative scarcity of the crypto.

Finally, yield farming is a niche, not to mention complicated and somewhat risky activity. DFI.Money may well intend to make things easier for people, but  there is not a great take-up of it compared to regular crypto trading. As always, it pays to be careful when it comes to investing in any crypto, so make sure you do your own research before you invest in YFII.

FAQs

On 20 July 2022, there were 38,596 YFII in circulation out of a total supply of 39,375.

With the crypto picking up, there is a case to be made for investing in YFII. That said, some caution is needed. Despite the recent boost, the crypto is still down quite a bit compared to where it was 12 months ago. Remember, cryptocurrencies can be highly volatile and prices can go down as well as up. You will need to do your own research and never invest more than you can afford to lose.

It might do. Whether or not the recent rise in price is sustainable is up for debate, but it has been doing comparatively well recently. Regardless, you will need to remember that cryptocurrencies can be highly volatile and prices can go down as well as up. You will need to do your own research and never invest more than you can afford to lose.

This is entirely a matter for you. Before you do so, though, you will need to do your own research, remember prices can go down as well as up, and never invest more money than you can afford to lose. 

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
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