2020-11-18 05:30 |
Yearn.finance (YFI) is erupting higher as Bitcoin pushes to new year-to-date highs. The coin is up 20% in the past 24 hours alone, rocketing from under $20,000 to daily highs closer to $25,000.
As of this article’s writing, YFI trades for $23,700, as it faced a bit of a correction after peaking at the local highs.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom Yearn.finance Erupts Higher Amid DeFi Bull RunWhat was impressive about this rally is that took place over the span of a few hours. At the turn of the day, YFI rocketed $4,000 higher within an hour, liquidating countless short position holders on margin exchanges such as Binance.
This came after a $1,000-1,500 rally that took place in an hour just hours before this latest leg higher.
YFI’s price action has been extremely volatile over recent weeks as a result of coordinated buying and the extremely high futures volume seen with the Yearn.finance coin.
Trader “Hsaka” suggested that it appears that there are many traders in this market that are severely underexposed to YFI, AAVE, and other tokens in the space:
“Lot of chatter about an alts carnage. Alts have shat the bed harder on $150 $BTC sneezes. Think it’s mostly a narrative desperately trying to be shoehorned in from those sidelined/underexposed. My pocket rockets, $YFI and $AAVE are up 3x & 2x since Initial Shill Offering.”
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin What’s Driving the YFI Rally?Driving the YFI rally are fundamental developments, namely a growing amount of total locked value in Yearn’s yVaults and an increase in the yields offered by these products.
Due to a rally in the DeFi market, yields in the space have begun to increase as farming tokens like CRV rally and as there is more borrowing activity from larger players.
Yearn.finance’s yields have been rallying as a result, driving more cash flows to YFI holders.
Continued fundamental strength in all of DeFi should end up having a positive effect on YFI in particular. The coin is affected by macro DeFi factors as it is seen as a dividend-yielding asset from Yearn.finance usage.
YFI remains far below its $44,000 all-time high despite the recent rally off the $7,500 lows it reached just weeks ago.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing Featured Image from Shutterstock Price tags: yfiusd, yfieth Charts from TradingView.com Yearn.finance (YFI) Explodes $4,000 Higher in An Hour: DeFi Bull RunSimilar to Notcoin - Blum - Airdrops In 2024
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