It is time to move beyond ‘why bitcoin is dropping’. Bitcoin is neither the only tradable crypto asset nor it today commands the same dominance in the crypto market as it commanded a few years ago.
Altcoins, or alternate cryptocurrencies to Bitcoin, are attracting their fair share of backers. Major cryptos including Bitcoin and Ether may have lost value in the first week of 2022, but a few altcoins are shining. One such altcoin is Harvest Finance crypto.
What is Harvest Finance Crypto?
Harvest Finance, like all other blockchain-powered projects, uses decentralized ledger to offer a variety of services. It is a decentralized finance (DeFi) platform.
DeFi has emerged as one of leading sub-sectors within cryptocurrencies. Unlike crypto exchanges like Coinbase and Binance, DeFi platforms let crypto investors earn revenue from their holding. The holder of a cryptocurrency, without selling the crypto assets, engages in what is called ‘yield farming’. Harvest Finance is one of many emerging DeFi yield farming platforms.
How does Harvest Finance work?
The platform lets users stake their crypto assets, which creates liquidity in the crypto market. In a sense, this unlocks the potential of cryptos lying idle in wallets.
Staking opens a source of revenue for the user. By depositing cryptos on a yield farming platform, the users earn rewards. This differs from the popular practice of buying and selling crypto assets over any exchange to earn capital gains.
What is Harvest Finance FARM token?
FARM token serves the purpose of providing profits to the yield farmer within the Harvest Finance’s platform. The tokens are distributed as an incentive to depositors for staking their holding.
FARM crypto also acts as the governance token of Harvest Finance. DeFi platforms provide power to users to decide the governance aspects. In order to participate in voting, users must stake their FARM.
Harvest Finance crypto price
FARM token came into existence in September 2020 and took off to a price of over US$400 over the initial few days. As of now, Harvest Finance crypto is trading at nearly US$165. The market cap is over US$100 million, which is relatively very low as compared to a long list of multi-billion dollar market cap crypto assets.
Image description: Price movement of Harvest Finance crypto
Data provided by CoinMarketCap.com
Harvest Finance crypto price prediction
As stated earlier, Harvest Finance crypto traded well for a few days after its launch, but by the end of 2020, the price had dropped to under US$100. By February 2021, the token peaked to almost US$410, before losing value again.
Harvest Finance crypto price has remained hyper-volatile ever since its launch. In mid-2021, the price fell to almost US$40. Over one week of 2022, however, Harvest Finance has scripted a comeback. The focus of investors on DeFi and yield farming, which has also helped other tokens like ALCX to rise in 2022, may likely help Harvest Finance crypto to reach US$200 over the next few weeks.
Also read: 5 cryptos to explore in January 2022
Crypto prices are volatile and can swing in any direction. But there is a new trend in the crypto market, where the prices of big assets like Bitcoin and Ether may be falling, but some altcoins still gain. Harvest Finance crypto works in DeFi sector and yield farming is becoming attractive. Only if the momentum continues, FARM crypto may rise further in 2022. Considering the past volatility in its price, the peak price of US$410, however, seems far-fetched.