Yearn.finance (YFI) has evolved into a dominant player in the DeFi market in less than 3 months. This is seen as the price of YFI skyrocketed by 1,200% to hit all-time highs of $44,000 ‘flipping’ Bitcoin price. YFI explosive growth has alluded to the DeFi factor.
YFI has since remained in the spotlight after its meteoric rise. The recent launch of yVaults even increased its popularity among ETH whales. yVaults are essentially a set of automated actions that allow users to deposit funds. yVaults have been noted to generate amazingly high APY to users, with some up to four digits.
A few days back, when the crypto market saw a broad-based selloff, YFI also conceded to bearish action majorly influenced by ETH correction, profit-taking from BTC’s previous rally, and a strong selloff amongst DeFi-tokens.
A short term inverse correlation has been noticed between BTC and Altcoins when Bitcoin is range-bound, Altcoins rally, and when Bitcoin rallies moderately Altcoins may lag but still tend to follow BTC’s bullish price action. This correlation seems to suggest that investors cycled profits from DeFi tokens to BTC when it rallies.
YFI/USD Daily Chart Bitcoin’s price has been stagnant of late as bears and bulls tussled after a broad-based sell-off. Consequently, YFI saw three straight days of bullish action gaining more than 45% in the process as price pushed from lows of $20,224 to its recent price of $30,000 to rank among top gainers.
DeFi token Synthetix (SNX), NEM (XEM) are also among the top day’s gainers. YFI is presently trading at $30,237 up by 13% on the day, Bitcoin barely gained 1% on the day.
Analysts at Whalemap stated that BTC can stay in a bullish trend as long as it defends $10,407 while noting BTC whale clusters at this level. The analysts emphasized this may indicate “bulls have won,” as the market sentiment recovers gradually.
The hourly map of Bitcoin whale clusters. Courtesy: WhalemapWilly Woo, an on-chain analyst noted that Bitcoin is showing decoupling from traditional markets which suggests a strengthening momentum for BTC.
An analyst sees that the BTC uptrend is not only supported by technical factors, but the present fundamentals also project a positive near-term outlook.
Analysts at Glassnode noted that recent data that indicated a drop in 1BTC holder addresses is not concerning and does not impact network fundamentals.
Image Credit: Whalemap, Shutterstock
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
