Top Defi coin YFI dropped by 10 percent despite rallying over 1,000,000 percent since its listing price back in July as reported in the altcoin news.
Yearn.finance is a coin that skyrocketed since its launch but then it slowed down and now the top Defi coin yfi dropped to $34,000 which is a drop of 22% below the all-time high of $44,000. The coin dropped by 10% over the past day, underperforming both BTC and ETH. The two cryptocurrencies are pressing higher right after the Federal Reserve confirmed its stance on monetary policy. The price action of the coin is similar to that of other top altcoins which most of which sunk in the past day.
$YFI governance contract is yielding $7 per coin per day. Without StableCredit or yETH vault…
For all the FCF modelers.
— DeFiGod (@DeFiGod1) September 16, 2020
Yearn.finance is expected to go higher in the long-term as the project continues to increase. Yearn.finance and many other coins in the DeFi space dropped in the past 24 hours despite the strength in BTC price. YFI alone crashed by 10% in the past 24 hours and over 20% in the past few days. This crash makes the coin one of the worst-performing assets in the top 100.
Altcoins are suffering as well and could continue to suffer if ETH slides under $350 according to one prominent trader. Commenting on the charts, where it can be seen where the leading cryptocurrency can be seen that acts as an altcoin barometer and is on the verge of losing important support:
“Super important Level for $ETH: Currently $ETH and it’s ERC20 minions seem to be leading the market, would not be surprised to see another -25% day across the board for #DeFi tokens if $ETH trades under 350.”
While YFI’s short-term price seems to be up in the air, most agree that the long-term prospects of the coin remain positive. Tyler Reynolds who works at Google, and follows up on the crypto space, noted that the price to free cash flow analysis, YFi could trade at over $100,000. This is simply based on the YFI governance contract which generates yields each day. Analysts expect that the project’s revenues will increase over time as the entire ecosystem grows and thus will drive more capital and higher yields into the YFI ecosystem. This could mean that YFi’s intrinsic value will grow over time and will drag the price of the coin higher.
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