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Sunday, December 6, 2020

Reasons Why Yearn Finance (YFI) is Surging and Might Hit $20K soon

This is the first time since 2017 that any popular coin, let alone one-month-old crypto, would ever surpass bitcoin in value. As YFI’s market capitalization and exchange volume soar, it’s beginning to look as though this coin is heading for a greater height.

The big question is, can the coin reach $15,000 in the next few days, and what circumstances would support such a crazy price move?

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Yearn.finance (YFI) is the new gold of the cryptocurrency world. The cryptocurrency, possibly becoming the world’s most controversial crypto. It took everyone by a surprise within its one month of launch.

There are speculations that the coin will surge further than bitcoin in the next few days. And a few possibilities exist for such turn around of events.

Initially listed at around $32 per coin in July, the coin rose quickly within a span of two weeks to make a record price surge up to $4,000. This had been achieved by the end of the month of July.

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In August, YFI took the stage to make more explosive profits while surging into the $12,500 corner as of the 18th of August. Further surpassing Bitcoin price in the process on the popular crypto exchange platform, Binance.

Why Is YFI Price Actually Surging?

The possible explanations to a drastically surging YFI is based on two reasonable assumptions:

Firstly, the “Yield farming” revolution.

This attitude can be understood by the characteristics of YFI token. In elementary terms, this asset has phenomenal scarcity: only 30,000 YFI can ever exist.

This was frequently emphasized by the yearn.finance team that YFI has no utility and can only be used for governance of yearn.finance products.

Having said that, the current upsurge was most probably stimulated by the delayed FOMO of retail traders from Binance and UniswapV2.

In addition, market manipulations also cannot be left out of the usual suspects.

The collective volume of trading associated with low-tier platforms (BKex, BiKi, MXC, etc.) equals the overall trading volume reported on Binance, Uniswap, and Balancer – As per Etherscan explorer.

On the other hand, the price might have been influenced by the recent development happening in the Yearn.finance space. Recently, fresh “yield farming” strategies were being inducted and yCRV vaults began to deliver an unbelievable 81% APR on locked YFI.

Will YFI Price Reach $15,000 And How Long?

The most reasonable guess is to agree that the above is true. According to analysts, after observing YFI’s rally after launch, YFI’s seven-day run from launch should be treated as the fastest 100x in crypto history.

Prominent analyst and investor Qiao Wang claimed that the “fair” price of YFI is way more than $10,000.

The time in which this is achievable is not exactly a certainty. However, the truth is, YFI appears to be widely undervalued and may give great returns in the future!

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