Amidst a trading frenzy, FARM token experiences an 80% surge in just one day.
The native token of the yield farming protocol Harvest Finance, known as FARM, has been gaining popularity in the United States. It is currently trading at $88, which is an 80% increase in value in the past day.
As of now, FARM has a trading volume of $218 million in the last 24 hours, showing a significant increase of 19,000%. This surge in trading volume has resulted in a market cap of $60 million for the token.
Harvest Finance is a yield farming protocol that operates on the Ethereum blockchain. Additionally, it can be traded as a BEP-20 token on the BNB Smart Chain.
When FARM was first launched on September 2, 2020, it experienced an all-time high in price. This was likely due to the fact that there were initially no tokens in circulation, and the few coins that entered the market quickly skyrocketed in value. According to CoinMarketCap, the all-time high for FARM was recorded at $2,236.
However, the price of FARM dropped to around $78 a few weeks after its launch, coinciding with the end of the “defi summer” in 2020. During the second wave of the crypto bubble in 2021, FARM reached a peak of approximately $303. But as the second wave subsided, the price of FARM declined.
The situation worsened for FARM when Harvest Finance experienced a hack in October 2020, resulting in a loss of $24 million. This caused FARM’s price to plummet by 65% in just one hour. The downward trend continued into 2022, with FARM hitting a low of $33.35 in May.
The maximum supply of FARM tokens is hard-coded at 5 million. However, in the fifth week after its launch, investors voted to limit the supply to 690,420 tokens by reducing the number of tokens generated each week until August 2024.
Despite this supply limitation, the number of FARM tokens in circulation has been growing rapidly. In October 2020, there were approximately 250,000 FARM tokens, which increased to about 456,000 by January 2021. As a result, the project’s market capitalization reached its peak at $194 million in February 2021, much later than the peak price of an individual FARM token.
The issuance of new FARM tokens occurs on a weekly basis. Of the newly issued tokens, 70% is allocated to liquidity providers and individuals who contribute capital to the platform’s asset management strategies. Another 10% is directed towards ongoing protocol development, while the remaining 20% is placed into a development fund. This fund is periodically utilized to compensate the developers responsible for building the protocol.
