Yearn.finance’s original token, YFI, has shed a tear in recent weeks. Since its low in October, the cryptocurrency has seen a steep rise, characterized by strong fundamental and on-chain trends.
First and foremost, the cryptocurrency is collected by top funds in the crypto asset space. For example, Polychain Capital owns almost 2% of the total supply of the Ethereum-based token. Three Arrows Capital is also believed to own a large portion of the cryptocurrency.
Holding YFI gives its holders the option to capture some of the cash flows generated by the Yearn.finance protocol. The main product of Yearn.finance is the yVaults, which allow users to earn a regular return on their deposits of stablecoins and popular cryptocurrencies. Parts of that profit are sent to a treasury, where YFI strikers can make a regular return.
The mint is also benefiting from a broader resurgence in the DeFi space, with more capital, both from a retail and institutional perspective, entering this burgeoning space.
Related reading: This is why Ethereum’s DeFi market can be near a bottom
Yearn.finance’s YFI could soon exceed $ 30,000
According to a crypto asset analyst, if YFI manages to pass $ 29,600 in the near future, it could start a steep climb. He recently shared the chart below, which shows the $ 29,600 level for the DeFi mint has been absolutely crucial in recent weeks.
It marked the highlights of a rally that took place late last month and temporarily prevented a disruption in early December.
If YFI manages to maintain that level, the trader said, it may be unwise to go short on the asset.
Chart of YFI's price action over the past few weeks with an analysis by crypto trader HornHairs (@CryptoHornHairs on Twitter). Source: YFIUSD from TradingView.com
Related reading: Tyler Winklevoss: There will be a “Tsunami” of capital for Bitcoin
YFI will likely benefit from a series of partnerships recently announced by founder Andre Cronje.
Through the partnerships, the Yearn.finance team will join forces with other teams such as those from SushiSwap and those from Akropolis.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: YFIUSD, YFIBTC Charts from TradingView.com Yearn.finance (YFI) is About to Pass a Pivotal Bull Level