DFI.Money price prediction: What is DFI.Money (YFII)?
Can YFII recover from its recent downturn?
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 at some DFI.Money price predictions, too.
DFI.Money and its native token DFI.Money (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.
Yield farming 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 yields 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 quorum 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 whitepaper, 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 whitepaper says 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 crypto 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 2020, 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 climb above $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 2021, 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 2021 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 turned bullish in the wake of Bitcoin reaching new heights, with YFII reaching $4,408.32 on 8 November 2021.
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 2021 saw the downturn continue and the token closed the year at $2,810.18.
So far, 2022 has been a tough year for crypto generally 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 2022.
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 2022.
The really bad news came in May, though. It fell below $1,000 on 9 May 2022 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 25 May 2022 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 2022, 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 2022.
After that, though, there were some losses that saw YFII standing below $1,000 for a while, before a recovery saw it reach $2,127.93 on 26 July. The token then dipped to $1,485.11 on 28 July 2022 before recovering $2,222.93 on 29 July, but the price then dropped back down to trade between $1,500 and $2,000 in August. As of the time of writing on 15 August 2022, YFII was worth about $1,683.
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 just $65m, making it the 356th largest crypto by that metric.
DFI.Money price predictions
Before we look at any 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 often made using an algorithm, which can change at any time.
CoinsKid has a YFII price prediction which says the token should grow further this year, and reach $1,968.09 by the end of 2022 before rising to $2,741.49 in August 2023. A year on from then it should hit $3,931.69 while the site’s DFI.Money price prediction for 2025 sees it start the year at $3,310.04, climbing to $4,931.56 in July and closing the year at $6,386.73. In August 2026, YFII should be worth $8,025.14 before reaching $9,998.43 in November, the site predicts.
CaptainAltCoin has a DFI.Money coin price prediction that says it should drop to $1,088.93 in October 2022 before recovering to trade at $2,081.98 in August 2023. In 2025, YFII should be worth about $3,370.83, but that is as good as things will get and, by July 2027, it should be worth $0, becoming a de facto dead coin, the site believes.
PricePrediction in contrast is very positive indeed. The site has a DFI.Money price prediction for 2022 which sees it rise to $2,132.65, while it says that the token should then reach $3,190.24 in 2023, $4,726.43 in 2024 and $7,070.98 in 2025. The site argues that YFII will be worth $10,174.62 in 2026 before going to $15,218.87 in 2027 and $21,690.33 in 2028.
PricePrediction thinks the token should close the decade at $31,822.80 and gives a DFI.Money price prediction for 2030 of $46,239.62 before it reaches $67,187.77 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 over $118.90.
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 aim to make things easier for people, but there is still no 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.
How many DFI.Money are there?
On 15 August 2022, there were 38,596 YFII in circulation out of a total supply of 39,375.
Is DFI.Money a good investment?
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.
Will DFI.Money go up?
It might do. Whether or not the recent rise in price is sustainable is up for debate, but it has been doing comparatively well of late.
Regardless, you will need to remember that cryptocurrencies can be highly volatile and prices can go down as well as up. Do your own research and never invest more than you can afford to lose.
Should I invest in DFI.Money?
This is entirely a matter for you to decide. Before you do so, 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.