Messari noted a lack of expenses as one potential reason for this.
Messari believes that Yearn.Finance’s YFI token is one of the least expensive in the DeFi space, according to its price-to-sales multiple. The metric is calculated by dividing a token’s market capitalization by its annualized yield. In YFI’s case, its capitalization at the time of calculation was $390 million. According to Messari, its annualized sales stood at $21 million. Dividing the two numbers, we get approximately 20x. For reference, the same ratio for CRV, another popular DeFi token, is 1568x, making it 78 times more expensive according to this ratio.
DeFi Price-to-sales multiples. Source: Messsari.
Messari noted that unlike many of its competitors, Yield.Finance does not currently have any significant expenses, essentially turning its price-to-sales ratio into price-to-earnings, or PE. It should be noted that at a current price of $13,300, YFI is worth almost 15% more than Bitcoin (BTC).
