Your favorite crypto news blog

Yearn Finance’s YFI Hits $50K Before Bitcoin as Grayscale Shows Interest

Bitcoin 2021/02/12 12:10 by Yashu Gola

Yearn Finance’s governance token YFI reached a new milestone on Friday as its price crossed over the $50,000-mark for the first time in history.

The gains appeared as Grayscale Investments, a New York-based cryptocurrency management firm, registered an LLC for a prospective Yearn Finance Trust. That prompted traders to raise their bids for YFI, given Grayscale’s critical role in shooting Bitcoin prices upwards after accumulating almost 3 percent of the flagship cryptocurrency’s active supply for its proprietary Bitcoin Trust.

The YFI Bull, Explained

Grayscale’s core business model offers accredited investors the opportunity to gain exposure in cryptocurrency markets by purchasing shares of its open-ended private trusts that hold the digital assets in concern. For instance, its Grayscale Bitcoin Trust, or GBTC, has 649,130 BTC to date and its per-share cost is around $48 over-the-counter.

The company accumulates additional crypto-assets based on institutional demand. Therefore, analysts typically consider its buyouts as bullish for the concerned assets. As it shows interest in launching a Yearn Finance trust, bulls believe the move would bring high-profile investments into the decentralized finance sector.

YFI, YFIUSD, YFIBTC, YFIUSDT, cryptocurrencyYearn Finance off to close the day at record levels. Source: YFIUSD on TradingView.com
Yearn Finance off to close the day at record levels. Source: YFIUSD on TradingView.com

YFI peaked at $50,592 on Friday. Its price is now comparable to Bitcoin, which peaked above $49,000 on the same day.

Traders anticipate the price to grow higher. A pseudonymous analyst on Twitter stated that YFI could push for a $150,000 valuation based on its technical readings against Bitcoin. In retrospect, the YFI/BTC exchange rate showed signs of breaking out of a bullish channel, leaving the analyst with a strong upside bias.

YFI, YFIUSD, YFIBTC, YFIUSDT, cryptocurrencyYearn Finance shows upside strength against Bitcoin, as shown by GalaxyBTC. Source: YFIBTC on TradingView.com
Yearn Finance shows upside strength against Bitcoin, as shown by GalaxyBTC. Source: YFIBTC on TradingView.com

“YFI coin supply on exchanges has been gradually decreasing since November 2020 where it saw the highest Coin supply on exchanges since launch and price bottomed out, suggesting that capitulation has taken place,” said analysts at Santiment.

“This gradual drop in YFI is healthy and positive as there’s less sell pressure on exchanges,” they added.

0 Like(s)

You should also read...

Other 10/09/20 15:10 by Yashu Gola
YFI Forms a ‘Golden Cross’ Pattern Following 38% Rally
As YFI trades 25 percent below its record high, there is an interesting bullish pattern for traders to consider. That is ‘Golden Cross,’ a telltale technical indicator that suggests that t...
Read More
Other 22/10/20 13:00 by Yashu Gola
Yearn Finance (YFI) Hints Major Rebound as Its Pool Attracts $80M in a Day
Yearn Finance’s native token YFI showed fresh signs of recovery after crashing by up to 72 percent from its all-time high near $44,000. The decentralized finance cryptocurrency surged by as much...
Read More
Bitcoin 26/10/20 12:04 by Yashu Gola
Analyst Calls for Yearn Finance (YFI) Rally on Bitcoin’s Stabilization Signals
As Bitcoin catches a break after exploding above $13,000 last week, it’s mid-cap rival Yearn Finance (YFI) is looking to rally higher. The prediction comes from a pseudonymous analyst on Twitter...
Read More
Other 30/10/20 11:49 by Yashu Gola
Yearn Finance (YFI) Slips Below $10K in DeFi Bloodbath; Breakout Ahead?
A splendid beginning for Yearn Finance in the third quarter is coming to an end with a brutal sell-off. The yield farming aggregator suffered a major blow this week as its governance token, YFI, plung...
Read More
Other 03/11/20 12:38 by Yashu Gola
3 Reasons Why Yearn Finance (YFI) Fell Below $10K — Recovery Ahead?
Yearn Finance’s native token YFI debuted with an explosive price rally, surging from zero to over $44,000 in just 45 days of trading. But as hopeful traders anticipated an extended bull run towa...
Read More