Blockchain data shows that Ethereum’s Yearn.Finance YFI, still has room to rally after its recent price rally as we reported in our recent cryptocurrency news.
During the ongoing Ethereum and Bitcoin correction which has brought both of them under 11% and 19% from their highs, Yearn.finance has done quite well. The native governance token of Yearn.finance which is now the largest in the Defi space has increased by three percent over the past 24 hours and is now pushing the $33,000 level. The coin could extend higher because of the fundamentals and the on-chain trends according to Santiment analysis that created the Blockchain data.
— Santiment (@santimentfeed) September 2, 2020
YFI could be poised to go even higher even as Bitcoin and other cryptocurrencies are getting beat up by the crashing stock market and the rising US dollar. Santiment reported that the asset will go higher due to the confluence of the on-chain and sentiment trends. YFI is getting deposited into Aave’s lending pool which only suggests that investors are confident that the asset will rise in the long run. The social volume has continued to go higher as the price crashed and the asset was withdrawing from crypto exchanges while its supply was decreasing to fill the market demand.
— Alex Krüger (@krugermacro) August 31, 2020
Others agree with the YFI sentiment and believe that the asset will rise in the upcoming days. Alex Kruger noted that the release of yETH Vault will catalyze the influx of investment into both YFI and ETH. The vault is a product that allows investors to obtain ETH deposit yield thereby making ETH a productive asset. The reason why this will generate more buying demand for the coin is the yearn.finance protocol charges users a withdrawal fee. The fees are then pooled and distributed to the holders of the coin which makes the coin a dividend-yielding one.
It’s important to know that YFI is just a proxy for investing in the Defi space so if decentralized finance loses steam and the yields crash, YFI will also drop and will collect fewer fees for the holders of the coin. It’s important to analyze the rest of the path for the Defi market if you decide to invest in YFI. The growing trend is intact as capital, developers and users are slowly getting into the sentiment of the crypto market.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]