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Beefy finance (BIFI) price prediction: Will it yield big returns?

By Nicole Willing

Edited by Valerie Medleva

14:05, 14 March 2022

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BIFI/USD
BIFI/USD
494.28942 USD
12.4618 +2.590%

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The price of the Beefy Finance governance token, BIFI, made strong gains in January and February but has sold off in the past two weeks.

The cryptocurrency project is among a growing number of yield farming optimisers around today where holders can earn by staking their tokens. Yield farming works on the basis that stakers receive regular payouts as rewards for providing liquidity – the higher the token price, the higher the value of future rewards.

What is Beefy Finance? And how does the BIFI token work?

In this article, we take a look at the project’s tokenomics and the latest price predictions.

Beefy Finance automates high yield strategy

The emergence of decentralised finance (DeFi) apps has seen cryptocurrency projects offering token holders high yields for staking. Beefy Finance launched on the Binance Smart Chain (BSC) in September 2020. The beefy finance token enables holders to participate in governance votes on the project’s development as well as earn daily interest payments from staking.

Beefy Finance is a yield optimiser, which uses strategies secured through smart contracts to maximise returns from a range of liquidity pools (LPs),‌ ‌automated market making (AMM) projects ‌and‌ ‌other yield‌ farms. Users can stake their tokens in Beefy Finance’s Vaults, rather than having to move their tokens between yield farms to secure the highest returns.  

“Yield‌ ‌optimisers‌ ‌on‌ ‌Binance‌ Smart Chain ‌present‌ ‌a‌ ‌different‌ ‌set‌ ‌of‌ ‌problems, challenges and opportunities.‌ ‌While‌ ‌on‌ ‌Ethereum,‌ where ‌gas‌ ‌fees‌ ‌are‌ ‌high,‌ ‌it‌ ‌makes‌ ‌sense‌ ‌to‌ ‌focus‌ ‌on‌ ‌gas‌ ‌savings, and ‌pooling‌ ‌funds‌ ‌to‌ ‌deploy‌ ‌strategies,” says the project’s blog. “‌Working‌ ‌on‌ ‌the‌ ‌Binance‌ ‌Smart‌ ‌Chain,‌ ‌where the fees are far smaller, ‌the‌ ‌focus‌ ‌moves‌ ‌to‌ ‌optimising‌ ‌automation‌ ‌to‌ ‌secure ‌the‌ ‌greatest ‌yields‌ with less concern for the amount of interactions necessary ‌to‌ constantly ‌improve‌ ‌a‌ ‌moving‌ ‌APY.‌

“With‌ this ‌automatisation,‌ ‌we‌ ‌can‌ ‌provide‌ ‌a‌ ‌simple‌ ‌way‌ ‌for‌ ‌investors‌ ‌to‌ ‌interact‌ ‌with‌ ‌pools,‌ ‌projects,‌ ‌and‌ ‌other yield‌ ‌opportunities‌ ‌without‌ ‌having‌ ‌to‌ ‌constantly make decisions and take‌ ‌manual‌ ‌actions‌.‌ ‌We‌ ‌see‌ ‌this‌ ‌as‌ ‌a‌ ‌necessary‌ ‌step‌ ‌to‌ levelling ‌the‌ ‌playing‌ ‌field,‌ ‌allowing‌ ‌small‌ ‌investors‌ ‌to‌ ‌have‌ ‌access‌ ‌to‌ ‌the‌ ‌same‌ ‌opportunities‌ ‌that‌ ‌so‌ ‌far‌ ‌only‌ ‌whales‌ and full-time yield-farmers ‌have‌ ‌had‌ ‌access‌ ‌to.‌”‌ ‌

Since launching in BSC, Beefy Finance has expanded to 13 other blockchains and networks: Avalanche, HECO, Polygon, Fantom, Harmony, Arbitrum, Celo, Moonriver, Cronos, Fuse, Metis, Aurora and Moonbeam.

In the latest project news on 10 March, Beefy Finance announced that it is working with decentralised automation protocol Gelato to decentralise the compounding of yields in its Fantom vaults, with the Binance and Arbitrum chains to follow. “Our in-house solutions constantly harvest said vaults, but in order to be a truly decentralised protocol, we need to strive for decentralised processes as well,” the company said. 

“Bots call these functions only when these conditions are met and a harvest makes economic sense. Automating key functions via Gelato’s decentralised infrastructure offers greater user experience, saves previous development resources while maximising compounding efficiency, all to the benefit of the Beefy Community.”

At the time of writing (14 March), there are currently 72,000 BIFI tokens in circulation out of a maximum supply of 80,000. There was no pre-mine before the launch and 90% of the supply was distributed to the community in the first two months through staking pools. The remaining 10% is being vested to the development team through four distribution events over a two-year schedule, according to the company’s blog.

The annual percentage yields (APYs) offered in Beefy Finance vaults factor in the platform fees, which are used to buy back BIFI tokens on the open market daily and reward holders who stake their tokens in the BIFI Maxi Vault. “So by buying $BIFI and staking in BIFI Maxi, you have something unique: Daily revenue from a non-inflationary ‘dividend’ token where the ‘company’ buys shares off the market every day, and gives you more of them,” according to the revenue sharing model

The BIFI token chart shows that the price skyrocketed from $79.09 at the end of December 2020 to its all-time high of $3,057.26 on 16 March 2021 as cryptocurrency prices rallied. But the token then sold off and reached a lower high of $2,600.63 on 15 April when other coin prices climbed to fresh highs. The price dropped to $602.97 in May and then briefly rallied to $1,705 in mid-June before dropping back to $704.08 on 20 July when the broader markets bottomed out.

DOGE/USD

0.10 Price
+3.210% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0012119

LUNC/USD

0.00 Price
-5.800% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 22:00 (UTC)
Spread 0.00000799

BTC/USD

23,401.50 Price
-0.050% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

XRP/USD

0.41 Price
-0.250% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.00330

BIFI price chart
 

The BIFI price then trended higher for the rest of the year reached $1,615.40 on 2 December, although it then slipped back to end 2021 at $1,200.26. BIFI broke the $2,000 mark in late January and peaked at $2,604.65 on 16 February. The price has dropped back below $2,000 so far in March to trade down to the $1,500 level.

What’s the outlook for the beefy finance token price in the future? Let’s look at some expectations for how the token could trade in 2022 and beyond.

Beefy finance (BIFI) price prediction: Will it yield big returns?

Technical analysis from CoinCodex was bearish for the token’s short-term outlook at the time of writing (14 March). There were 24 indicators showing ‘sell’ signals and six indicating a ‘buy’. The daily and weekly simple and exponential moving averages were bearish. But CoinCodex was bullish in its beefy finance price prediction, estimating that the token could rise to $1,410.43 by 19 March.

But for the longer term the beefy finance (BIFI) price prediction from algorithm-based forecaster Wallet Investor was bullish, predicting that the price could move back above the $2,000 level to $2,228.82 by the end of 2022. The site projected that the price could move to a new high in 2024 and end the year at $3,675.17. By the end of 2025, BIFI could trade at $4,408.42, rising to $5,282.67 by March 2027.

The beefy finance (BIFI) crypto price prediction from Gov Capital expected the price to rise faster than Wallet Investor’s projection, with the token reaching $3,069.945 by the end of 2022. Based on deep learning technical analysis, the price could rise to $9,639.589 by the end of 2023 and $29,198.99 by the end of 2025. Gov Capital’s BIFI prediction had the price hitting $48,357.32 by March 2027.

DigitalCoin was also bullish in its BIFI coin price prediction, although it expected the price to rise at a slower pace than Wallet Investor and Gov Capital. Based on historical data, DigitalCoin’s forecast showed that BIFI could average $1,770.68 in 2022 and $2,706.14 in 2025, reaching $3,337.32 in 2027 and $6,265.03 by 2030.

The target price from Price Prediction was higher than DigitalCoin at $1,927.95 for 2022. The site’s beefy finance coin price prediction was closer to Gov Capital’s for the longer term. Based on deep artificial intelligence-assisted technical analysis, its beefy finance prediction was $33,749.20 for 2030, jumping to $47,170.79 in 2031.

It’s important to keep in mind that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict what a coin’s price will be in a few hours, and even harder to give long-term estimates. As such, analysts and algorithm-based forecasters can and do get their predictions wrong.

If you are considering investing in cryptocurrency tokens, we recommend that you always do your own research. Look at the latest market trends, news, technical and fundamental analysis, and expert opinion before making any investment decision. Keep in mind that past performance is no guarantee of future returns. And never invest money you cannot afford to lose.

FAQs

Is Beefy Finance a good investment?

In volatile cryptocurrency markets, it is important to do your own research on a coin or token to determine if it is a good fit for your investment portfolio. Whether the BIFI token is a suitable investment for you depends on your risk tolerance and how much you intend to invest, among other factors. And never invest money you cannot afford to lose.

Will the BIFI coin price go up or down?

At the time of writing, some of the long-term BIFI price predictions showed that the token’s price could go up in the coming years. But it is important to keep in mind that cryptocurrency prices are highly volatile and difficult to predict. Forecasters can and do get their predictions wrong. You should do your own research to make informed trading decisions. Keep in mind that past performance is no guarantee of future returns.

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