YFI, the native token of a fast-forward decentralized finance giant, Yearn Finance, has surged 8,900 percent against Bitcoin since its launch. And now, an analyst says that the cryptocurrency could grow further.
Amsterdam-based stock trader Michaël van de Poppe said in his Monday tweet that the YFI price could surge towards 4 BTC per token. The comments followed the DeFi crypto’s 35 percent rally in the last 24 hours, wherein YFI/BTC surged from 2.31 BTC to an intraday high of 3.10 BTC.
Yearn Finance token surged 35% against BTC on growing DeFi hype. Source: TradingView.com
Mr. Poppe placed the price rally on a Fibonacci retracement graph drawn from a swing low of 2.30 BTC to a swing high of 3.56 BTC. An upward break above the peak showed YFI/BTC testing 4 BTC as its bull target, leading Mr. Poppe to see the level as achievable mettle.
“Nice 35% bounce here and looking ready to continue,” the analyst explained. “If construction holds and it breaks the new high, we might be running towards 4 BTC a piece.”
Sentiments for YFI were similar across the cryptocurrency industry. Many analysts called for the DeFi token to continue what has already been an overhyped price rally. Their bullish predictions took cues from the YFI’s parent protocol, the Yearn Finance, that is now holding $840 million worth of crypto tokens inside its vaults.
In retrospect, Yearn Finance is an aggregator of various lending protocols that picks the best yielding pools for its users. So far, its ecosystem includes Compound, Aave, Balancer, and dYdX pools. Aave, a UK-licensed decentralized lending platform, has just joined Yearn Finance.
Meanwhile, YFI serves as the governance token for the platform. That allows its holders the right to decide on the addition of new cryptocurrencies to Yearn Finance. For instance, the Yearn Finance community voted to add yETH, a token that supports the staking of Ethereum’s native cryptocurrency ETH via its protocol.
“YFI is adding ETH yVaults,” said one analyst. “Few understand why this is bullish, but it’s quite simple. ETH vaults typically draw in the most liquidity. YFI has been a monster liquidity vacuum without them, imagine the addition… this will accelerate things far beyond current TVL.”
Both YFI and ETH prices surged after the launch of yETH.
Other catalysts that have pushed YFI higher include a partnership with FTX–one of the top cryptocurrency derivatives exchanges–and the announcement of yinsure.finance, one of the first tokenized insurance services in the DeFi space.