Messari says one reason why this happened was that expenses were curtailed.
Messari says the YFI token from Yearn.Finance is one to hold on to for any investor who doesn’t want to spend much in getting something from the DeFi space just as the price-to-sales multiple confirms. To get a result for the metric, simply divide the market cap of a token by its annualized yield. For YFI, the market cap used for calculation is $390 million. Messari’s data states that annualized sales is $21 million. When the two numbers are divided, the result is 20x. To compare with another well known DeFi token, the CRV, its calculation gives 1568x, so it is 78 times costlier than YFI.
Messari explained that the reason why Yield.Finance’s token is cheap is that it doesn’t spend much so that its price-to-sales ratio is actually price-to-earnings (PE). It is also important to know that YFI is 15% more valued than Bitcoin at the price of $13,300.