Yearn Finance (YFI) has eclipsed Bitcoin’s value and posted a new all-time high of $16,700.
The popularity of DeFi is one reason YFI is gaining in the market.
YFI has a very low circulating supply of 29,962 making it very responsive to demand.
YFI is the sole governance token of Yearn Finance and is distributed to users who provide liquidity on the platform.
As Bitcoin traders are busy analyzing the possibility of BTC breaking and maintaining $12k, another digital asset by the name of Yearn Finance (YFI) is trading above BTC’s current price levels. At the time of writing, YFI is trading at $14,675 having posted an all-time high value of $16,700 – Binance Rate – only yesterday, August 20th.
A Brief Technical Analysis of Yearn Finance (YFI)
Being a relatively new token in the crypto-verse, the YFI/USDT chart can only be analyzed using low time frames such as the 1hr and 6hr. From the 1-hour chart below, it can be observed that there is still considerable buying interest that could propel YFI back to around its all-time high value in the right market environment.
However, as with the COMP token a few days back, YFI risks experiencing a hard correction with the 200 MA on the 1hr chart serving as strong support around $8,200.
A Brief History of Yearn Finance (YFI) in the Crypto Markets
Having arrived in the crypto scene in mid-July, Yearn Finance has had a meteoritic rise since the digital asset of YFI was listed on the popular crypto exchanges of Binance, Poloniex, FTX and Gate.io.
The DeFi project of Yearn Finance was officially released around the 17th of July. The DeFi platform aggregates lending services such as Aave, Compound, DyDx and Fulcrum in a bid to simplify the process of Yield Farming.
The YFI Token is the sole governance token on Yearn Finance and YFI is rewarded to liquidity providers on Yearn Finance as follows.
Earning YFI is simple, provide liquidity to one of the platforms above, stake the output tokens in the distribution contracts (we will provide an interface for this), and you will earn a (governance controlled) amount per day.
However, YFI has a low circulating supply of 29,962 further explaining its meteoritic rise in the crypto markets. At its current rank of 39 on Coinmarketcap, YFI has a market cap of $439.6 Million which is a fraction of Bitcoin’s current market cap of $218.6 Billion.