Bitcoin is the world’s largest and most expensive cryptocurrency. When it comes to the second most expensive crypto coin, investors stop at Ethereum’s native token, Ether – the second-largest cryptocurrency in terms of market cap.
However, Ether is not the second most expensive token.
Yearn.Finance, a yield-farming project, holds the distinction of being the second-most expensive token with a trading price of around U$ 29,000 apiece. On the other hand, Ether is trading at US$ 1,900 apiece.
In September 2021, Yearn.Finance (YFI) zoomed over US$ 41,000 per token and became the first cryptocurrency to surpass Bitcoin’s price. YFI recorded its lifetime high of over 93,400 apiece in mid-May this year.
Yearn.Finance versus Ethereum
Crypto experts believe that Ether is one of the leading value tokens in the cryptocurrency industry due to the high usage of its blockchain platform for decentralized finance (DeFi) activities. In contrast, Yearn.Finance is built on Ethereum blockchain using its ‘solidity’ programming language.
Ether’s market cap is US$ 218 billion, multiple folds up against YFI’s market cap of around US$ 1 billion. Ethereum has gained over 150 per cent year-to-date (YTD). Meanwhile, the YFI token has risen 22 per cent this year.
As per historical data, Ether’s price trajectory seems to be more stable than Yearn.Finance, which witnessed massive volatility in 2021. The former declined over 55 per cent from its all-time high of over US$ 4,300 apiece, while the latter tumbled over 71 per cent against its record high, led by the recent sharp price dips.
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Ethereum is the top blockchain platform in terms of traffic and smart-contract projects. Whereas, Yearn.Finance is a smart contract written through Ethereum’s blockchain technology.
The primary reason behind Yearn’s higher price is its limited circulation supply of 36,635.44 coins against Ethereum’s unlimited supply. However, Ethereum’s developers decided to eliminate excessive tokens to maintain the demand and supply balance.
Price predictions for Yearn.Finance & Ethereum
Crypto experts estimate that Ethereum will surpass Bitcoin's price by 2030 due to sustainable utility. Its price could hit US$50,000 apiece by 2025 since many central banks may opt for its blockchain platform to write smart contracts for their digital currencies.
Meanwhile, Yearn.Finance’s coin price has dropped a third of its value since March 2021. If the token gains more traction from investors to earn a yield on their crypto holdings, it may climb back to its lifetime high by 2022.
Please note: The above constitutes a preliminary view and any interest in cryptocurrencies should be evaluated further from an investment point of view.