Home News Yearn Finance price nearly hits $70,000 — What’s driving the YFI bulls?

Yearn Finance price nearly hits $70,000 — What’s driving the YFI bulls?

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Amid growing hype around the decentralized finance (DeFi) industry, yEarn Finance, a lucrative farming project, has attracted increased attention in recent days. Traders rushed to buy YFI. So, the price of the YFI token has reached new record highs – just under $ 70,000. We can say that the price of altcoin is comparable to the rate of Bitcoin. Traders expect the price to continue to rise. An anonymous analyst said the YFI / BTC chart signals a possible breakout towards $ 150,000.

The popularity of this project, which its creators describe as extremely experimental and high-risk, turned out to be unprecedented even by the standards of the DeFi ecosystem.

The significant growth in the Yearn Finance token market has emerged as growth opportunities in other leading tokens are diminishing. Bitcoin never made it past the $ 60,000 resistance level. Ethereum (ETH), the second largest cryptocurrency by market capitalization, also lost ground, with the price dropping below $ 4,000 due to the pursuit of profit-taking.

Tough start 2021 for Yearn Finance

YFI Yearn Finance has had a rough start in 2021, but the token is now gaining momentum.

Previously, the developers called their cryptocurrency “absolutely useless”, despite this, its rate continues to grow.

Yearn Finance is a DeFi aggregator platform that collects the best deals from the crypto market by landing page (works as a contribution). Users transfer funds to the platform, convert them into local tokens, which are used in other services that provide a fixed income on deposits.

The field of decentralized finance began to gain popularity amid the crisis caused by the pandemic. Traders can take out a loan or use other services similar to banking. So, you don’t need to fill out and collect documents and there is no risk of being rejected.

Analysts note that “the supply of YFI coins on the exchanges has been gradually decreasing since November 2020. When it recorded the highest rate since launch and the price bottomed out, indicating surrender”.

This gradual decline is healthy and positive as there is less room for selling pressure on exchanges.

Will YFI repeat the path of Bitcoin?

Yearn.finance (YFI), one of the most popular cryptoassets in the Ethereum decentralized financial space, has seen extreme price spikes. According to the CoinMarketCap resource, over the past day, the asset has grown by about 10%. So, it surpassed even BTC and Ethereum in terms of price growth.

The most important trend behind YFI’s continued upward trend is that its main competitors have lagged far behind, and an update in the form of Yearn V2. Yearn V2 includes a new commission structure, multi-strategy storage, and highly differentiated strategies through a new ecosystem of partnership with Cream.

In addition, the Yearn.finance token is used as a vehicle through which generate income from deposits of stablecoins such as USD Coin and Tether. This return became so attractive to investors that hundreds of millions were pumped into the Yearn.finance protocol. This increase in deposits has led to an increase in the value of YFI. It is a measure of the value of the Yearn.finance ecosystem.

According to experts, the YFI project will continue the bullish trend in 2021.

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