Yearn Finance YFI's price increased by 46% in just 4 days
Rancakmedia.com – YFI's Yearn Finance price increased by 46 percent in just 4 days after the $7.5 million purchase from Yearn Finance. The “decentralized” treasury has over $45 million and will seek a similar YFI buyback in the future.
Yearn Finance (YFI) emerged as one of the strongest players in the crypto market this week, surging more than 46 percent in just four days to reach a two-week high above $29.100.
As a result of a community vote to boost the YFI token economy, Yearn Finance stated that they have been buying back YFI in large numbers since November.
The decentralized asset management platform acquired 282.40 YFI at an average price of $26,651 per token totaling nearly $7.50 million.
Furthermore, Yearn Finance said it has more than $45 million stashed in its Treasury and has a “stronger than ever” profit.
Consequently, it will in the future possibly spend its earnings to buy back additional YFI tokens.
Adam Cochran, partner at activist venture firm Cinneamhain Ventures, observes that Yearn Finance earns around $100 million annually on fees alone received from Vaults, its flagship smart savings account service that optimizes the accrual value of digital assets stored.
Analysts also observe that Yearn has attracted over $5 billion in total value locked (TVL) against a market capitalization of $781 million. Nonetheless, Yearn Finance's protocol generates one of the highest fees per TVL, providing sufficient liquidity to support its future token buyback plans.
Yearn Finance YFI Undervalued
Cochran also compared Yearn Finance's profit-to-sales (P/S) and profit-to-earnings (P/E) ratios to other "payout-based" protocol curves, underscoring that YFI remains undervalued relative to Curve's staking token, CRV.
In short, the P/S ratio shows that how much investors are willing to pay for a company's stock depends on its sales per share. The P/E ratio is a measure of how much shareholders are willing to pay for a company's stock based on expectations of future returns.
In both circumstances, a lower reading implies an undervalued stock. “Their P/S ratio is 3.6x and their P/E is 7.9x,” Cochran said of Yearn Finance.