Analysts think that growth in the DeFi branch could drive the cost of Yearn.finance (YFI) to $50k in a short timespan.
During the weekend, YFI, Yearn.finance’s token, hit a new record of $43,966 on Binance’s exchange. This happened when the cryptocurrency marketplace was recovering from Bitcoin’s steep 17.5 percent reversal, which pushed its pricing to fall as little as $9,8k on some exchanges.
As BTC’s price steadily recovered, YFI’s price rose by more than 100 percent from Sept. 9, and lots of analysts now think the token will soon make a push for the $50,000 mark.
What Caused the YFI Surge?
The mix of strong technicians, novel assets, profit farming, and the rising popularity of decentralized finance liquidity pools probably pushed YFI’s upsurge.
Before the surge, the cost of YFI was reasonably steady, over $20K, which is near its $19,5K macro-supporting level. Following a pretty long period of consolidation, the YFI began a sudden rush.
Yearn.finance has introduced novel produce. One of them is called StableCredit USD. Lisa Tan, a researcher at Economics Design, clarified that StableCredit USD is a modern collateral framework that uses Aave. Tan has explained that utilizing MakerDAO’s method for multiple-collateral in the system was applied, rather than just one asset collateral. One can put whichever asset they wish as collateral. Utilizing Aave’s lending rules means one can borrow to a max of 75 percent of the collateral given.
The outlook for the current products of Yearn.finance, like yVaults and Yinsure.finance, mixed with new product releases, is a factor for YFI’s optimism.
Tech analysts said that when Yearn.finance went over $34,650, a new asset market structure was already in place.
A pseudonymous trader going by “Benjamin Blunts” said prior to the $40K run that Yearn.finance would possibly hit a new peak of nearly $50K. He stated that the Yearn.finance closing the daily over $34,650 is important. But if it does so, he said, then the next threshold is $50,000 and another record. He was hoping for a stronger plunge to add, but he was suspicious of that occurring.
Michael van de Poppe, a full-time trader on the Amsterdam Stock Exchange, said, too, that YFI might theoretically have a $75K target. Like that, prior to the run-up to $43,966, he identified $50K as a probable area of resistance.
If Yearn.finance goes over $50K, the trading community expects that YFI will reach the $70K mark. At that point, Yearn.finance could be priced at circa $2B! Van de Poppe stated that the set of possible target zones of YFI dollars showed that trending and hyped coins are performing well. As always, they return the strongest. Thus, he saw $75M as a possible aim.
Momentum Better Following Coinbase Press Release
On Sept. 11, Coinbase said that it would list YFI on Coinbase Pro to allow traders to exchange YFI by Sept. 14.
The company described YFI as a DeFi site with the target of performing a number of functions like the overall liquidity and automatic marketing making by shifting providers’ financing amid platforms like dYdX, Aaave, and Compound.
When the listing occurred, YFI’s cost shot up by twenty percent, and the price bounced around the $40K level ever since. Coinbase-listed assets usually jump prior to being listed and then plunge afterward. We will see what will happen with YFI.