Earn up to 12% APY on Bitcoin, Ethereum, USD, EUR, GBP, Stablecoins & more.

Start Earning Interest
Ad: Bybit - Make your first deposit and earn bonuses of up to $3,000, and more! Earn now!

Yearn.finance community looks to split YFI token as price rockets past $10,000

Over the past few weeks, Yearn.finance community members have been driven by a goal of YFIโ€™s price reaching parity with that of Bitcoin.

Yearn.finance community looks to split YFI token as price rockets past $10,000
Deposit and Earn Up to $3000 Bonus

Over the past few weeks, Yearn.finance community members have been driven by a goal of YFIโ€™s price reaching parity with that of Bitcoin.

This goal came to fruition overnight, as the tokenโ€™s price rocketed to highs of over $12,000 before facing an influx of selling pressure that caused it to dip as low as $9,000.

The high price per unit has been widely looked upon as a feature that has benefited its price action, as it has allowed it to stand apart from the deluge of other tokens with more โ€œstandardโ€ prices.

Now, there is a growing movement amongst YFI governance participants to conduct a token split.

Yearn.finance price rockets overnight, reaches parity with Bitcoinย 

Although trading at sub-$1,000 levels just over a few weeks ago, the Yearn.finance protocolโ€™s growth โ€“ coupled with a strong community โ€“ has allowed its price to incur meteoric gains as of late.

At the time of writing, YFI is trading up over 20% at its current price of $10,050. This is around where it stabilized at following the intense movement it faced overnight.

This momentum sent the cryptoโ€™s price rocketing up to highs of roughly $12,000 before it witnessed an influx of selling pressure that sent it reeling down to lows of $9,000.

For a brief moment at the peak of this overnight rally, Yearn.financeโ€™s price reached parity with that of Bitcoin, fulfilling the so-called โ€œprophecyโ€ that investors had been widely promoting.

Currently, YFIโ€™s 30,000 circulating supply gives it a market capitalization of just under $300 million.

Governance participants propose splitting YFI after it passes BTCโ€™s price

One proposal being put forth for Yearn.finance governance participants suggests that the cryptocurrencyโ€™s price will see a 10:1 split after its price exceeds that of Bitcoin for over 10 consecutive days.

One advocate of the token, named โ€œlearn yearn,โ€ described the proposal in a recent tweet:

โ€œWe support a 10-1 YFI split after the price exceeds Bitcoin for 10 consecutive days.โ€

In traditional finance, stock splits happen quite frequently and tend to have positive short-term impacts on the underlying assetโ€™s price.

Although not having any fundamental impacts on any specific asset, some believe that people have a higher propensity to buy an asset with a lower price per unit.

As one user stated in regards to the Yearn.finance proposal:

โ€œHaving a higher price than Bitcoin will psychologically prevent people from wanting to buy. Less demand => lower price of YFI. It’s all psychology. That’s why TSLA and AAPL are doing stock splits even though most brokerages offer fractional shares.โ€

Yearn.financeโ€™s massive user base has led some to believe that the YFI token remains undervalued. As such, it is a strong possibility that โ€“ assuming the proposal passes โ€“ the cryptocurrency will soon undergo a split.

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis
Price snapshots
More context
Join now for $19/month Explore all benefits
Deposit and Earn Up to $3000 Bonus

Like what you see? Subscribe for updates.