Yearn.finance (YFI) Jumps 30% Towards Bitcoin’s All-Time High Price of $20k
Yearn.finance (YFI), one of the hottest crypto assets in the Ethereum decentralized finance space, has seen an extreme price performance in the past day. The asset has gained approximately 30% in the past 24 hours as per data from Coin Market Cap. This is an outperformance of Bitcoin’s 1% gain and Ethereum’s 1.7% move higher.
While YFI currently trades at $18,200 as of this article’s writing, it peaked earlier today just shy of $20,000.
Chart of YFI's price action over the past 10 days from TradingView.com
What’s especially notable about the rally in YFI is that it was launched just a month ago. Further, at the launch, creator Andre Cronje asserted that the cryptocurrency literally has “zero value.”
What’s Behind YFI’s Ongoing Move Higher?
The crucial trend behind YFI’s ongoing move to the upside is it getting listed on another leading DeFi platform, Aave. Aave is a money-market protocol that allows users to lend and borrow cryptocurrencies based on Ethereum.
Aave announced the listing on August 28th. This listing should provide YFI with some positive price pressure as that means holders can now earn further yields on their YFI
… $LINK Price feed…
…Few Understand pic.twitter.com/hvbfWnn1rc
— Aave (@AaveAave) August 28, 2020
YFI is also benefiting from the launch of Curve’s Curve DAO token (CRV).
The token is being used by Yearn.finance as a medium through which yield can be obtained on deposits of stablecoins like USD Coin and Tether. These yields have become so attractive to investors that hundreds of millions have been siphoned into the Yearn.finance protocol. This increase in deposits has led to an increase in the value of YFI, which is a proxy for the value of the Yearn.finance ecosystem.
Related Reading: These 3 Trends Suggest Bitcoin Is Poised to Bounce After $1,000 Drop
Long-Term Outlook Still Strong?
Although YFI may be skewed to appreciate in the near run, what does the asset’s long-term outlook look like?
According to Alex Krüger, a long-term bull case exists for the cryptocurrency.
Andre Cronje recently noted that he’s working with the FTX team and Sam Bankman Fried, the CEO of FTX and Alameda Research.
Krüger thinks that these two individuals working together — Cronje and Bankman Fried, that is — will be a recipe for YFI and Serum (SRM), an FTX-backed project, becoming “long-term winners.”
— Alex Krüger (@krugermacro) August 28, 2020
Featured Image from Shutterstock Price tags: yfiusd, yfibtc, btcusd, xbtusd, btcusdt Charts from TradingView.com Yearn.finance (YFI) Jumps 30% Towards Bitcoin's All-Time High Price of $20k