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Crypto investors are always trying to find the "next Bitcoin." And the Harvest Finance coin could be that.
Social media wants to stay busy pumping random new cryptocurrencies "to the moon," like Dogecoin and Shiba Inu. Meanwhile, other projects experience real gains, but go unnoticed.
This is one you don't want to ignore. Some analysts are giving Harvest Finance (FARM) Bitcoin-like projection - as high as 4,760% over the next decade.
Sure, it can be hard keeping up with the ever-changing decentralized finance (DeFi) landscape. This kind of investing involves a lot of attention to your portfolio and a lot of time that most people don't have.
But there are ways around spending time you don't have to make returns on your crypto investments. That's how Harvest Finance (FARM) has caught the eye of everyday crypto investors.
Let's take a look at how Harvest Finance is constantly creating opportunities and where its token, FARM, is heading into the new year and beyond.
What Is Harvest Finance?
If you've dabbled in DeFi, then you've experienced the frustration of moving funds around various protocols.
It takes time, gas costs are high, and it involves strategy and positions that don't always add up.
Harvest Finance wants to change that.
Harvest wants to help investors find opportunities without taking more time out of their day searching and researching.
It does this by looking for a convenient way to harvest yield from the latest projects in DeFi. To put your funds to work, you simply deposit tokens from various supported cryptos.
The protocol, built on the Ethereum Network, takes your funds and pools them together with other users' funds. It then runs this pool through a program constantly seeking gain potential determined by a complex and bullish algorithm.
So rather than just holding your cryptos, you stake your assets in the Harvest Finance Vault, while the protocol executes various yield farm strategies.
By pooling funds together, Harvest saves on gas fees that are too high for someone that doesn't have the time, money, and the know-how to operate any yield farming strategy. In fact, Harvest claims to have saved over $27 million in gas costs for users.
It's also a safer way to invest in what is a notoriously volatile market, and that's thanks to the intelligent contract auditors that audit Harvest.
Haechi Audit is a leading smart contract security and audit development firm. It's among the most trusted in the business and consists of top security experts who have won the Ethereum Foundation Grant.
Between Haechi and PeckShield, it allows farmers to remain less impacted even in market volatility.
So where does the Harvest Finance coin, FARM, come into play?
How FARM Coin Works on Harvest
FARM is Harvest Finance's native coin. It's a governance and cash flow token for Harvest.
When the protocol generates yields, 70% of those yields are used to increase the value of the deposits. The other 30% are converted into FARM tokens.
That other 30% is used to reward farmers who staked their FARM into the FARM pool, and increase the value of iFARM, the yield-bearing FARM.
FARM holders can vote on the future direction of the Harvest protocol and receive incentives to provide liquidity.
Most importantly, holders of the coin get to participate in profit sharing from yield farming revenue.
There are only a total of 690,420 FARM tokens, 656,017 of which are in circulation. This makes it one of the scarcest commodities in DeFi.
This wasn't the original cap supply of FARM tokens, however. Initially, there were 5 million FARMs created, but it was FARM holders that voted to reduce the maximum supply to 690k.
Harvest Finance Hack of 2020
While putting your money through farm yield protocols like Harvest keeps your crypto safe from yourself and general market volatility, it's still not entirely secure.
Anything built through DeFi is exposed to potential hackers looking to expose the tiniest missed detail in code.
Harvest fell victim to such an engineering error in 2020 that cost it $24 million.
The hack was a reminder that while DeFi has come to prominence, it still has its share of loopholes.
The hacker returned $2.5 million to Harvest, nothing compared to what he or she walked away with in just seven minutes.
FARM fell 54% when news of the hack was made public. Funds locked in the protocol also plummeted from $1 billion to $575 million in almost one day.
Since the hack, Harvest has recovered but not back to its previous numbers. It announced upgrades to help prevent future attacks on its network.
FARM Price Prediction
Such a limited maximum supply of FARM makes for a more bullish price prediction.
Given the state of the market, FARM could see serious gains in the next five years.
Yield farming isn't going away, and gas prices aren't going down. Options like Harvest Finance will only become more popular for people who can't spend an inordinate amount of time on their crypto wallets.
FARM has been on a wild ride this year after hitting a high of $410 in February, only to drop to a low of $43 in June, but ending the year up 83% at $172.
Price Prediction is particularly bullish on FARM, predicting it will hit at least $303 in 2022. It expects the coin to average at $836 by 2025, eventually reaching a high/low of $6,726/$5,578 by 2030. That's a potential 3,810% gain by 2030.
Gov Capital is also bullish on FARM. Its one-year forecast has the coin hitting $425.62, and reaching as high as $1,096 by the end of 2025. Its five-year prediction forecasts FARM to reach a high/low of $1,708/1,262 by January 2027. A modest 892% gain compared to other forecasts.
Tech News Leader is a little bearish in the short term, but is bullish in its 10-year prediction. It anticipates FARM to go up to $255 this year, and up to $357 in 2023. From here, the site is far more bullish. It forecasts the altcoin will increase from an average of $736 in 2025 to a high of $5,506 by 2030. It believes that FARM could reach a max as high as $8,360 in 2031. That's a potential 4,760% gain in the next 10 years.
These Two Tiny Cryptos Are Set to Crush Bitcoin's Gains by 10X
Bitcoin might be the "buy and hold" asset of the decade, but it's not the end all, be all of crypto.
There are two tiny coins from a whole new class of cryptocurrencies, and they could very well crush Bitcoin's performance by 10X in the years ahead.
They're based on a technology that's light years ahead of Bitcoin.
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