The native token of the popular yield farming protocol Harvest Finance, FARM, has been making waves in the U.S. as its price surged by 80% in the past day, reaching $88. With a 24-hour trading volume of $218 million, FARM’s market cap now stands at $60 million.
Harvest Finance is known for its innovative yield farming strategies that generate returns by moving user funds across various defi platforms. The protocol, native to the Ethereum blockchain, can also be traded as a BEP-20 token on the BNB Smart Chain.
FARM made headlines on its first day of trading in September 2020 when it reached an all-time high of $2,236. However, the token’s price experienced significant fluctuations, dropping to $78 shortly after its debut and reaching highs of $303 during the 2021 crypto bubble. A hack in October 2020 that resulted in a loss of $24 million caused FARM’s price to plummet by 65% in just one hour.
Despite these challenges, Harvest Finance has implemented measures to control the token supply, with a maximum cap of 5 million coins. Investors voted to reduce the supply to 690,420 tokens by decreasing the weekly token generation rate. This scarcity model aims to increase FARM’s value as demand grows.
Harvest Finance issues new tokens on a weekly basis, with 70% allocated to liquidity providers and 10% for protocol development. The remaining 20% is placed in a development fund, which is used to reward the developers responsible for the platform’s success.
As FARM continues to gain momentum in the crypto market, investors are closely watching its price movements and the impact of Harvest Finance’s innovative strategies on the defi ecosystem. Stay updated on the latest developments by following us on Google News.