Yearn.finance’s native token, YFI, is expected to outperform in 2021 due to fundamental and technical trends.
A leading crypto-asset analyst recently shared that YFI’s recent price action is very similar to that of Ethereum ahead of the cryptocurrency’s major bull run in 2017. This fractal comparison suggests that Yearn.finance’s native token will be released in the coming year. will undergo an extreme increase.
There are also fundamental trends to move the cryptocurrency higher. Namely, Yearn developers will release an upgrade to a core product, while project founder Andre Cronje has entered into groundbreaking partnerships with other top DeFi protocols.
Related reading: This is why Ethereum’s DeFi market can be near a bottom
YFI will perform better in 2021, Key Fractal shows
According to a crypto trader, YFI’s recent price action looks extremely similar to Ethereum’s in late 2016. Both charts have similar technical formations, along with similar funding statements:
“Get the feeling that $ YFI is going to pull $ ETH in late 2016 and building insane pressure in the form of a rising triangle and price discovery starting in late December-early January as the real bull run is in ETH). “
Should Yearn.finance’s token follow the path of ETH, YFI will perform extremely well in 2021.
Chart of ETH's macro price chart from mid-2016 to mid-2017 with analysis by crypto trader Crypto HornHairs (@CryptoHornHairs on Twitter). Source: ETHUSD from TradingView.com
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Fundamentals Extremely bullish
Yearn.finance’s fundamentals are optimistic, boosting YFI’s outlook.
Namely, developers are in the process of rolling out Yearn.finance’s v2 Vaults. Vaults are the main product of the protocol, which allows users to earn a regular and relatively safe return on their deposits of assets such as stablecoins and Ethereum.
According to a Yearn developer proposal, the v2 Vaults will include the following improvements:
- Allow a vault to have multiple strategies at the same time
- Streamline the development cycle of new strategies using a standard API
- Streamline the QA / Security process for vaults to ensure the highest quality code
- Make sure the vaults are tested to handle different types of risk / return / volatility thresholds of the strategy
- Make it easier and more secure for integrators to use Vaults in their projects
Many expect the launch of this new Yearn product to boost YFI’s growth as it should pull more capital into Yearn, increasing dividends paid to YFI holders.
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Featured Image from Shutterstock Price tags: YFIUSD, YFIETH, YFIBTC Charts from TradingView.com Ethereum Fractal Predicts Yearn.finance (YFI) Will Have a Big 2021