YFI erupts higher as Bitcoin pushes to a new year-to-date high with the coin increasing by 20% over the past 24hours alone. YFI rocketed from less than $20,000 to $25,000 in one day as we are reading more in today’s altcoin news.
As of the time of writing, YFI trades for $23,700 after facing a correlation phase, after peaking at the local highs set a day ago. What was so impressive about this rally is that it happened over the span of few hours and once the day turned, YFI rocketed by $4000 higher in an hour, liquidating many short position holders on margin exchanges like Binance.
The move came after the $1000 and $1500 rally which took place in one hour, before the latest leg-higher. YFI’s price action was quite volatile in recent weeks as a result of coordinated buying and the high futures volume seen with Yearn.Finance coin. According to the popular trader “Hsaka”, it seems that there are plenty of traders on the market that are underexposed to YFI, Aave, and other tokens as he wrote:
“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.”
Boosting the YFI rally higher are the fundamental developments like the increasing amount of total locked value in the yVaults and the increase in yields offered by the products. Because of the rally in DeFi markets, yields in the space started increasing as the farming tokens such as CRV rally and there’s even more borrowing activity from the bigger players. Yearn.Finance’s yields were rallying higher as a result as well which only drove more cash flow to the YFI holders. With the continued strength in the DeFi bringing more positive effects on YFI in particular, the coin got affected by other macro DeFi factors as it was seen as the dividend-yielding asset from YFI usage. YFI erupts higher but it’s still far below its $44,000 all-time high despite the strong rally a few weeks ago.
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