Earlier this week, native crypto of DeFi venture Yearn.finance, YFI, hit a record high of $43,966 on Binance exchange. This happened as the crypto market was facing a sell off, with Bitcoin’s (BTC) value eroding by 17.5% to reach a low of $9,800 on some cryptocurrency exchanges.
As Bitcoin’s price rebounded, YFI’s price rose, with the project appreciating by more than 100% since September 9. Many analysts trust that the token will rally to reach $50,000 level soon. The combination of robust technical, fresh product offerings, yield farming and the rising popularity of DeFi liquidity pools act as a catalyst to YFI’s sharp increase.
Before the rally started, YFI token price was comparatively stable at over $20,000, which is slightly above major support level of $19,500. After a long-duration of consolidation, YFI began surging sharply. Yearn.finance has also rolled out new products and StableCredit USD is one among them. Lisa JY Tan, an academic at Economics Design, detailed that StableCredit USD is a unique collateral product that utilizes Aave. Tan stated:
2) Using @AaveAave‘s lending protocol so you can borrow up to 75% of the collaterals you provided (see 1 above)
— Lisa JY Tan (@lisajytan) September 12, 2020
Current product offerings of Yearn.finance, yVaults and Yinsure.finance, in addition to fresh product rollouts are believed to be the reason behind the bullishness around YFI. Many technical analysts have highlighted the bullish nature of the DeFi token soon after it crossed $34,650 level.
Before the rally took the price above $40,000, a trader, nicknamed “Benjamin Blunts” stated that YFI will probably hit new peaks of around $50,000. The trader stated:
$YFI closing the daily above $34650 is very significant imo, 47 mins to go but if we do i think we’re going to all time highs again and 50k next.
i wanted a bigger dip to add but at this stage i do not think im going to get it pic.twitter.com/cGNCYwQanX
— ??Farmer Bluntz?? (@SmartContracter) September 11, 2020
Michael van de Poppe, a professional trader at the Amsterdam Stock Exchange, also stated that YFI could likely hit the level of $75,000. Likewise, before the rally took the price of YFI to $43,966, Van de Poppe had mentioned $50,000 as the resistance level. If YFI breaks above that level firmly, then traders expect YFI to reach the $75,000 level. At that price level, Yearn.finance would command a value of about $2 billion. Van de Poppe said:
Determination of potential target zones on $YFI.
Trending and hyped coins are doing really well.
Like always, they bounce back the strongest.
Target of $75,000 possible? pic.twitter.com/jaZOvZJAtz
— Crypto Michaël (@CryptoMichNL) September 12, 2020
Four days before, Coinbase revealed that it would list YFI on Coinbase Pro, facilitating users to trade YFI on September 14 and thereafter. The exchange explained the covenant as follows:
“Yearn.finance (YFI) is a decentralized finance (DeFi) platform which aims to perform a host of functions such as aggregated liquidity and automated marketing making by moving providers’ funds between platforms such as dYdX, Aave, and Compound.”
Soon after the listing, YFI token’s price increased by 20% and reached the $40,000 level without much of a delay. Assets that get listed on Coinbase usually undergoes a pump and dump scenario. Crypto enthusiasts are closely monitoring to see whether it will be the case with Yearn.finance as well.
