By giving HODLers a wide range of options to earn high returns, yield farming has taken Decentralized Finance by storm. DeFi hasn’t only instigated noteworthy rallies in the prices of reward tokens. Instead, it has also managed to facilitate the influx of a whole new set of people into the crypto-ecosystem.
While some major DeFi tokens have seen major price corrections recently, the overall health of this sector has been in good shape. The total value locked in DeFi, for instance, spiked from $71.7 billion to $88.5 billion in just a day’s time.
Having said that, it should also be noted that altcoins like Fantom and YFI have had an impressive run since the beginning of October.
Apart from the broader market trend assisting the price of these two tokens, yield farming has been another major contributing factor.
Consider this – Flows from Ethereum to Fantom kept oscillating in the $10-25 million range per day for the most part of September. However, this number has exponentially risen and has been revolving around $450 million of late.
The launch of Geist Finance, a new yield farm, instigated capital inflows. On the back of the ridiculous incentives announced, early farmers ended up 10x-ing their capital in just a day’s time by providing liquidity.