Yearn Finance remains bullish in the long-term despite the 35% drop from local highs as the analysts noted so let’s find out more in our latest altcoin news.
Similarly to Bitcoin and Ethereum, YFI faced a strong retracement in recent days as the legacy markets have been crushed by the increasing dollar. The decentralized finance coin has been hit hard but it keeps on building the bullish case despite the drop. Looking at the charts we can see that the ETH-based coin has faced a huge correction in the past few days after peaking slightly below $40,000.
With recent DeFi token price run-ups, people have been crying "bubble!".
So is it too late to invest or not?
Here are my thoughts on where we are in the state of the DeFi market from an "inside perspective" pic.twitter.com/cDAhpc9tVN
— Andrew Kang (@Rewkang) July 1, 2020
According to Santiment, the blockchain analytics company, YFI remains positive in the longer-term perspective as the company noted that the users of AAve are still depositing YFI into the lending pool as the social volume for the cryptocurrency remains strong. The data also suggests that there’s vast accumulation taking place for YFI. All of these trends are working together which is expected to drive YFI higher in the long run. The underlying Yearn.finance protocol continued to collect a bigger amount of fees which could boost the coin in value in the long-run.
1) $YFI hit an all-time high of $38,404 as we crossed into September. Since first being covered in our previous article (https://t.co/WRzQBmsZp6), it is a cool +1,483%. Our latest covers:
✴️The #Aave lending pool indicates $YFI holders are pretty pic.twitter.com/sAo5Dm1c1e
— Santiment (@santimentfeed) September 2, 2020
YFI Is not exclusively linked to all Defi protocols but many analysts believe that the coin is basically a decentralized finance index. The segment of crypto is expected to continue growing as both financial and human capital enters the market. This bodes well for the ETH-based coin which will see further growth in the Defi space. Speaking on why YFI is on the verge of seeing longer-term growth, Andrew Kang, a venture capitalist noted that the market trends are just starting:
“DeFi has been around for years, but has only recently received serious recognition in the crypto community. But even with the buzz, the levels of understanding, usage, and capital allocation are all still low with high upside potential. **DeFi development** It’s hitting an inflection point. Those that have follow the space know how hard it is to keep up with the new projects even when researching on a full time basis.”
Other investors in the crypto space expect much more growth and many are noting the lack of yields that are offered in traditional finance compared to the Defi space. YFI stands to benefit most from all of this especially if it continues the path of being a leading yield aggregator.
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