ACK! I just had this exact idea but I knew someone on Craftster had to have done it before! I've just started needle felting so I can only aspire to be this talented. Many congrats on your Craftster BEST of 2013 Win too by the way.
Well I finally got the guts to finish a project, I was inspired by chain scarfs from pinterest and etsy. It was easy to make just chain a ton connect in one spot and wrap yarn around the connection (but really you don't even need to do that I just did it to make the loops stay separated). I used half a skein of yarn, total stash-buster project.