YFI Community Looks To Split After The Token Surged Past $10K

The YFI community considers splitting as the token price skyrocketed past $10,000, driven by the DeFi expansion which made the asset reach parity with Bitcoin as we reported previously so let’s find out more in the altcoin news today.

Over the past few weeks, the YFI community members were driven by the price surge of the asset and the hopes to hit new highs came true after the coin surged to new highs of $12,000 before facing a huge influx of selling pressure that caused it to dip as low as $9000. The high price per unit was looked upon as a feature that benefited the price action as it has allowed it to stand apart from the rest of the tokens with more “standard prices.” However, there’s a growing movement among the governance participants to conduct a token split.

Although trading at -$1000 levels over a few weeks ago, the Yearn.Finance protocol’s growth coupled with the strong community allowed the price to incur huge gains as of late. At the time of writing, YFI is trading up over 20% at a current price of $10,050 which is around where it has stabilized the intense movement that it faced overnight. The momentum sent the token’s price to new highs of $12,000 before it witnessed an influx of selling pressure that led the coin to lows of $9000.

For a short moment at the peak of the overnight rally, YFI’s price reached parity with the one of Bitcoin fulfilling the so-called prophecy which investors were prompting. The 30,000 circulating supply gives the market capitalization of less than $300 million. One proposal that is being put up for the governance participants suggests that the cryptocurrency’s price will hit 10:1 split after the price exceeds the one of Bitcoin in 10 consecutive days. One advocate of the token described:

 “We support a 10-1 YFI split after the price exceeds Bitcoin for 10 consecutive days.”

In traditional finance, the stock splits happen often and they tend to have positive short-term impacts on the asset’s value. although not having fundamental impacts of any specific asset, some believe that people have higher proponents to purchase an asset with a lower price unit, as one user stated:

 “Having 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.”