Ethereum’s Yearn.finance (YFI) Drops 10% as $7,000 Relief Rally Peters Outs
After bouncing just under 60% from its local lows of $12,000 to a local high of $19,000, Yearn.finance (YFI) is returning lower. The leading Ethereum-based coin has dropped by approximately 10% in the past 24 hours, as it currently trades for $16,000 as of this article’s writing. This is still 33% above the local lows.
The ongoing move lower in the price of YFI comes in spite of strength in the rest of the DeFi market, coupled with strength in the price of Bitcoin and Ethereum. Yearn.finance’s ongoing decline also comes after project founder Andre Cronje disputed rumors that he was quitting.
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Yearn.finance Continues Descent Despite Andre Cronje Disputing Rumors
While YFI’s decline from the local highs is far from bullish, the coin may remain in a positive short-term position if it can hold $15,600. One analyst recently commented that that price level for the leading cryptocurrency is of critical importance, as it held as resistance at two pivotal moments in August:
“The price action has been so clear on the 4-hr chart. Perfect opportunity to buy support in the $12k and then the break and reclaim of $15,600. Will continue to ride this up as long as this level holds,” he stated.
Image Courtesy of Josh Rager. Chart via TradingView.
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Despite the continued decline in the price of YFI, analysts remain bullish on the fundamental of DeFi.
As reported by NewsBTC, MetaMask recently surmounted 1,000,000 monthly active users, 300% higher than this metric was at a year ago. This is largely due to DeFi, especially projects like Yearn.finance (YFI). As the company developing the wallet wrote in a recent blog:
“Additionally, over the last twelve months, significant growth in the adoption of DAOs, Web3 games and the rapid consumer uptake of DeFi products and services has further accelerated our growth curve. It’s not just the ability to buy and store Eth that’s powering our new phase of growth. When you think about it, people don’t really want a wallet. They want to invest, sell, lend, borrow. They want to use sites like Uniswap, Yearn, Curve, Maker and Aave to get that job done. MetaMask is simply the connective tissue.”
Further growth in the DeFi space is likely to buoy Yearn.finance’s YFI, along with many other coins pertaining to the space.
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Photo by Clay Banks on Unsplash Price tags: yfiusd, yfibtc, yfieth Charts from TradingView.com Ethereum's Yearn.finance (YFI) Drops 10% as 60% Relief Rally Peters Outs
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Nick Chong, @KhareemSudlow
