Top crypto traders explain why Yearn.finance (YFI) may top $50K soon

Published at: Sept. 14, 2020

Over the weekend YFI, the native token of Yearn.finance, reached a new all-time high at $43,966 on Binance exchange. This occurred as the crypto market was still reeling from Bitcoin’s (BTC) sharp 17.5% correction which saw its price drop as low as $9,800 on some exchanges. 

As Bitcoin price slowly recovered, YFI price increased by over 100% since Sept. 9 and many analysts now believe the token will make a run at the $50K mark soon. 

The daily chart of Yearn.finance (YFI). Source: TradingView.com

What’s behind YFI’s surge? 

The confluence of strong technicals, new products, yield farming and the growing popularity of DeFi liquidity pools likely fueled YFI’s surge.

Prior to the rally, the price of YFI was relatively stable above $20,000, which is close to its macro support level at $19,500. After a relatively lengthy consolidation phase, YFI started an explosive rally.

Yearn.finance has also launched new products, one of which is called StableCredit USD. Lisa Tan, a researcher at Economics Design, explained that StableCredit USD is a new collateral system that uses Aave. Tan said:

“Using MakerDAO’s model of multi-collateral in the system, instead of just single asset collateral. You can put whatever asset you want as collaterals. Using Aave’s lending protocol so you can borrow up to 75% of the collaterals you provided.”

The prospect of Yearn.finance’s existing products, such as yVaults and Yinsure.finance, combined with new product launches are contributing to the optimism around YFI.

Technical analysts have said that when YFI surpassed $34,650, it already established a new bullish market structure. 

One pseudonymous trader known as “Benjamin Blunts” said before the rally above $40,000 that YFI would likely reach new highs near $50,000. The trader said:

“YFI closing the daily above $34,650 is very significant in my opinion, 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 I’m going to get it.”

Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, also said YFI could potentially have a $75,000 target. Similarly, before the run up to $43,966, van de Poppe established $50,000 as the likely resistance area. 

Key potential levels for YFI. Source: Michael van de Poppe

If YFI surpasses $50,000, traders forecast YFI to test the $70,000 level. At that price point, Yearn.finance would be valued at around $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?”

Momentum strengthened after Coinbase announcement

On Sept. 11, Coinbase announced that it would list YFI on Coinbase Pro, allowing users to trade YFI by Sept. 14. The exchange described the protocol as:

“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.”

Almost immediately after the listing, the price of YFI rose by 20% and the price has bounced around the $40K level since. Assets that list on Coinbase typically pump before listing, then dump shortly thereafter. Whether or not this phenomenon will occur with YFI remains to be seen.

Tags
Markets
Altcoin
Cryptocurrencies
Defi
Related Posts
Fetch.ai (FET) hits a 2-year high after DeFi integration and Bosch partnership
Artificial intelligence and machine learning are changing the face of commerce, computing and other technologies on a daily basis. In its most basic form, the information gathered by artificial intelligence is really just data that can be used to make interpretations and blockchains are built for the storage and transmission of data. Fetch.ai (FET) is a “Cambridge-based artificial intelligence lab” that has the goal of using distributed ledger technology to build a decentralized machine learning platform capable of securely transacting any form of data globally. Data from Cointelegraph Markets and TradingView shows that the price of FET has surged 720% …
Technology / March 7, 2021
Theta, Aavegotchi (GHST) hit new highs as Bitcoin price chases after $50K
Bitcoin (BTC) bulls appear to have found their momentum as BTC price reclaimed the $49,000 level within the last hour. On March 2 the price dropped as low as $47,000 but currently, BTC is trading above the 20-day moving average. Bulls are likely to make another attempt at flipping the $50,000 resistance to support and a sustained high volume spike could send the price to $52,000 where a daily close would confirm that bulls are back in the driver's seat. Even though Bitcoin is struggling to secure a daily close above $50,000, a steady thread of favorable news continues to …
Nft / March 3, 2021
Here are 6 DEX tokens that have seen exponential growth in 2021
DeFi has steadily grown in prominence over the past year thanks in large part to the strong foundations established by decentralized exchanges (DEX) that enable easy access to the latest tokens and projects. While there have been previous iterations of DEX user interfaces, such as IDEX or Etherdelta, it wasn’t until Uniswap launched that trading in the DeFi network really took off and facilitated the launch of the finance tokens. Here are six of the top-performing tokens in the decentralized finance sector. UNI/USDT Uniswap has risen from the humble beginnings of a simple user interface that allowed for a token …
Markets / Feb. 27, 2021
Impermanent loss challenges the claim that DeFi is the ‘future of France’
Impermanent loss is one of the most recognized risks that investors have to contend with when providing liquidity to an automated market maker (AMM) in the decentralized finance (DeFi) sector. Although it is not an actual loss incurred from the liquidity provider’s (LP) position — rather an opportunity cost that occurs when compared with simply buying and holding the same assets — the possibility of getting less value back at withdrawal is enough to keep many investors away from DeFi. Impermanent loss is driven by the volatility between the two assets in the equal-ratio pool — the more one asset …
Blockchain / March 5, 2022
GRT rallies 39% as subgraphs migrate to The Graph’s decentralized mainnet
As the growing digital economy undergoes a transition from Web2 to Web3, oracle and data providers are becoming an increasingly important sector of development to ensure the reliable sharing and transfer of information. The Graph (GRT) is one protocol that is spearheading the integration of blockchain technology with data management and retrieval through the creation of open APIs known as subgraphs. Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.3155 on March 13, GRT has climbed 38.6% to a daily high of $0.44 on March 15 where it is now attempting to flip this …
Markets / March 15, 2022