This Yearn.finance (YFI) Trend Could Lead to Serious Volatility Going Forward


Yearn.finance’s governance token – YFI – has been subjected to immense volatility throughout the past few days and weeks, which has come about due to conflicts within the community and weakness across the entire DeFi ecosystem.

This downtrend that has sent the cryptocurrency from highs of over $40,000 to recent lows of $16,000 came about due to a combination of different factors.

How To Get Free Crypto  

One such event that contributed to this was the recent Eminence imbroglio, in which users rushed into an uncompleted smart contract being developed by Yearn founder Andre Cronje.

14 BTC & 95,000 Free Spins for every player, only in mBitcasino’s Exotic Crypto Paradise! Play Now!

Despite it being well known that minting tokens from an uncompleted smart contract can be incredibly risky, users who lost their money due to the contract eventually being exploited still aimed their frustration at Cronje.

This compounded the technical weakness that the cryptocurrency had been seeing as a result of the market-wide downturn, eventually leading to a capitulatory selloff down to lows of $16,000.

One analyst is noting that lower yields on YFI-related yield farming opportunities is also removing the incentive to keep tokens off of exchanges.

Coinbase Banner  

As such, it may soon bear witness to heightened volatility in the days and weeks ahead.

Yearn.finance’s Price Rebounds from Recent Lows

At the time of writing, Yearn.finance is trading up just under 10% at its current price of $20,400. This marks a massive upswing from its recent lows of $16,000 that were set just a couple of days ago when it faced a capitulatory selloff.

The rebound from these lows has been significant and suggests that it was severely oversold at this time.

Now that it has posted a “v-shaped” recovery, it may be poised to start reversing its downtrend and moving higher.

Analyst: YFI Being Moved into Exchanges Could Perpetuate Volatility

While speaking about Yearn.finance’s current outlook, one analyst alluded to imminent volatility, explaining that more tokens will likely be moved to exchanges as farming incentives decline.

“Missing in the discussion of Yearn’s retreat in price – less yield farming opportunities for YFI means less incentive to keep the token off-exchange, leading to a material increase in CEX inventory (read: available for sale).”

Image Courtesy of Light.

Where the cryptocurrency trends next will likely depend largely on the aggregated DeFi sector, but it may see heightened volatility as more investors trade it on exchanges.

FreeBitcoin Banner  
Featured image from Unsplash.
Pricing data from TradingView.

Go to Source
Author: Cole Petersen


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.