Bitcoin Forum

I also sometimes feel confused, why the Defi project can have a price above Bitcoin and Ethereum? Does someone know the reason why?
Below is a list of Defi projects that have a price tag of over $10 000

# yearn.finance (https://coinmarketcap.com/currencies/yearn-finance/)
# Wrapped Bitcoin (https://coinmarketcap.com/currencies/wrapped-bitcoin/)
# pTokens BTC (https://coinmarketcap.com/currencies/ptokens-btc/)
# PieDAO BTC++ (https://coinmarketcap.com/currencies/piedao-btc/)
# sBTC (https://coinmarketcap.com/currencies/sbtc/)
# renBTC (https://coinmarketcap.com/currencies/renbtc/)

It doesn't matter, just pure hype, look at the trading volumes and that will tell you the whole picture. Bitcoin is still trading way above any of those Defi's.

And no offense to those who love Defi, but almost everyone shares the same opinion that it is like the IEO bubble of 2017, and we all know how it ended, just saying.

I'm thinking that peoples are driven to Defi tokens because of the hype, new things really attracts the eyes of investors and especially "dumb" ones because this type has the funds to play with. I don't see anything special about them but the pumps are really huge. I'm staying out of the game even if they stayed solid and continued growing, i'm not ready to risk anything.

Except YFI which seems an overexaggerated hype imo, all the others have BTC in their name and similar prices. Wonder why :)

They're alts sitting on other blockchain and pegged to BTC's price. In other words, fake Bitcoins. This is why their prices are higher than $10k. There are alts out there such as 42-Coin (and I think there's a coin purposed for adult stuff as well) that has an even higher price point than that. However, price just doesn't mean anything if the said coins are useless, centralized or both.

no doubt we are in the DeFi hype so more then likely few months from now, most of the listed projects by the OP will go down. i dont think they can sustain more than 10k level. it is really amazing how these projects can achieve such price level without any significant contribution in the crypto industry. wash trading, manipulation is how they are currently performing in the market.
 and by the way, maybe you are referring to ICOs in 2017 not the IEO. but anyway, both of these crowdsourcing types ended up bad for most projects.

True, bitcoin volume is much better, and performing wise as those against Defi hype. So I don't also understand why are there investors on Defi when they all know that it is a bubble.

I guess we never learn from the madness of 2017 and the burst that it has brought to all of us. Almost everyone loss some chunk of money, more on newbie investors though, we still bought at the peak and this is just history repeating itself again.

1. The enormous DeFi hype
2. Total Supply

Two things that make the tokens on your list can cost more than ETH or even BTC

I'm going to add more to what TravelMug said about trading volume.

CMC data shows the following:

Volume (24h)
- BTC: $18.9 Billion
- YFI: $46.7 Million

Circulating Supply
- BTC: 18.4 million
- YFI: 29 thousand

We've been saying that there's a correlation between demand and supply. When demand for a product is high and supply is low, it usually drives the price up.

There's a huge hype around DeFi products right now and investors are competing to get a piece of YFI. The low circulating supply is forcing them to buy at a higher price. Another factor is some investors are hodling tight which further limits the circulating supply.

The lesser trading volume also allows for easier market manipulation.

Do people understand that there are no real value behind them and they will be totally dead and forgoten after defi hype end?

All these aren't close to what Bitcoin has become, if they truly posses what BTC had they would be on top 5 list on coinmarketcap right now, not all coins that are insanely pricey are worth depending on, remember that adoption rate is important and Bitcoin has better adoption rate and the biggest volume + liquidity combined

No, Until it's too late to react and you lost all the money in this Defi hype. Usually those that fall for this trap are noobs in crypto sphere who thinks it a get rich quick scheme. This is very similar to the hype of ICO in 2017, many got burned and REKT in early 2018, so they either
(a) hold,
 (b) sold with a lost or
(c) still believed that some of their tokens are going to bounce back, then sold late causing more lost.

So let's see, unless you really know what you are entering then go for it, but if you don't have the experience and thought that this hype will go on parabolic rise then you are delusional.

beside supply and defi hype i think there is no other reason. people interested and speculate on token that onfire in market due DEFI trend. if we look at usage this token actually its totally different with other cryptocurrency that already adopted or have blockchain to solved ledger problem. look like  investor trapped by hype like 2017.

Except yearn.finance most of the tokens you mentioned have their price pegged to the price of bitcoin but on a different chain because of that, the price of those tokens are above 10k.

renBTC is the bitcoin on ren chain, sbtc is bitcoin for synthetix network and so on.

I am amazed that people that have been in the crypto space for a while are still not familiar with the price/supply concept. The price itself is not an indicator of overvaluation or undervaluation, its the combination of its price and supply, its not a hard concept to grasp. That being said, I agree that Yearn's price action has been insane, but hey, if people think that its worth is a correct reflection of its price, then it is, the question is for how long.

Does price is really matters for a coin/token? I think no

Example:
Coin A price is $1.000.000 with 0 volume.
Coin B price is $1 with 1.000.000 volume.

Which token will perform better? Answer is coin B
Coin A will be deadcoin soon since no one use it and the price have massive dump. While Coin B is have good adoption, the more adoption can make the price pumped. Also keep in mind when you want to buy coin or token... at least you can buy 0.00000001, not must buy 1 coin.

most of the token's price is overhyped.  PieDAO BTC++ last 24 hours trading volume is 0.2 BTC, PBTC 24 hours volume unknown, sBTC only 1.1btc.
Price is more than 10k$ but trade volume is less thank 3K$. These coins prices will fall soon. Don't always look at the price.look at the trading volume also :D

The only Defi project in your list is YFI. Others are not DeFi. But is a token that created where the value is pegged with BTC price (1:1). The main goal is to facilitated etherum community to swap their ETH/ERC20 token they owned via the MEW/Metamask wallet they use. Without having to bother sending their ETH/ERC20 tokens to the exchange like conventional transactions.

Instead I would have been more interested in knowing about high quality defi based tokens with low and limited supply and cheap price so we can take advantage and make some good profit with them because in crypto market these are some basic parameters to make profit.

The hype on that DeFi projects is too much and I'm shock to see an altcoin that is more expensive now with bitcoin. I'm still wondering how it happened because the trading volume is still low compare to bitcoin. Well, if those DeFi projects was able to hold beyond $10k in the next coming months then I'm sure that's not a hype anymore and investors really support that and possible to reach more peak.

Because of it's limited supply and demand in the market. It has 29,962 circulating supply while 30,000 max supply. Yearn Finance is really helpful as liquidity provider on DeFi market that's why investors are surging in on this coin since it's limited with a good market performance so far. It has a $69,462,448 24hr Trading Volume which is a huge amount considering that YFI token is a governance token only without actual value on the company. I believe investors of this token is just riding the wave but soon will unload token once YFI reach the point where the price was stagnant already. Just like the previous ICO madness during 2017, Investors are jumping different project once hype was already over.

I'm not a fan of governance token because it has no real value. Speculation is the only thing that gives it price.

Is that because of the supply must probably lowered and limited. It is quite noticing that the yfi has only 30k supply still it price is only about 13k to 16k but in fact it is so damn little. Only few got their hands on them due to small quantity. So if you had at least 100 to 500 of it sure it would be called whales already.

Among the list Im not familiar with other but Im sure they are probably a part of defi ecosystem that has been used on some method like yield farming and etc.

Just like you could easily pump your coin back in 2017 by announcing a whitepaper and a smart-contract, these days DeFi has become the new buzzword. The time is ripe for every one to jump onto the bandwagon and announce a DEX listing, a wrapped token, a smart contract and voila, if you catch the right one, you are in for a pump and dump. I would suggest everyone to not fall for these overnight operators.

DeFi may not have much real world usage but all the work behind takes time and competence. That means projects that have been slogging it out to get their oracles, APIs and development tools right since the ICO boom are most likely to be successful. All these newcomers joining the bandwagon with no history of actual development are just going to be another one of scam dev cash grabs. Stay away from them.

All of your coins listed are the form of synthetic assets or tokens backed 1:1 by Bitcoin and Bitcoin is now traded above $11,000. Thatis the reason.

The only coin that is not a form of Bitcoin, is YFI token. Nobody knows who is really buy it for this price, but as you know, the price is based on token supply. Due to low token supply, the price is high :).