Yearn.Finance has been one of the weirdest and most explosive projects in the past month. The DeFi coin has seen a ridiculous price surge from a low of $3 (according to the team) to a high of $12,821 briefly surpassing Bitcoin price. YFI price is still currently around $10,000.
Its trading volume has also been increasing significantly from an average of $200,000 to a current peak of $100 million.
The idea behind YFI is fairly simple, it’s basically a farm where users can stake in exchange for YFI rewards. There are a few ways to earn money through YFI. You can also ‘zap’ your way into the Curve Finance and aggregate stablecoins lending.
The primary factor in YFI’s success is its simplicity but also how profitable it has become. YFI is already trading on prominent exchanges like Binance.
YFI Price Analysis
Clearly, it doesn’t take an expert to see that YFI price is extremely bullish but will this bull rally last? Looking at the hourly chart on Binance, YFI seems to be slowing down. The 12-EMA was lost briefly but the 26-EMA held. There are quite a few levels of support for bulls, the first being the 26-EMA and then $9,000.
We are very likely going to see $10,000 as a strong resistance level for the psychology behind it. Additionally, the digital asset is already extremely overextended but FOMO could continue pushing it up.
Despite the amazing bull run, YFI bulls still managed to set some support levels and indicators are not that overextended.
Criticism Surrounding Yearn.Finance
One of the latest projects to offer similar benefits was YAM Finance which eventually collapsed. The digital asset went from $0 to almost $140 but collapsed shortly after due to a bug found in the rebasing contract. Funds inside the staking contract were safe but that didn’t stop the price of YAM to basically die.
YFI already faced some criticism after it got forked to YFII. A lot of people were actually scared that maybe something happened to YFI. The fork was legitimate and backed by a few trusted members. There is also another fork called the YFFI which basically did try to scam people by taking advantage of the DeFi craze.
Either way, Yearn Finance price continues rising and the project is already ranked 50th by market capitalization. It’s important, however, to remember that the price of the token itself is still based purely on speculation and there is no guarantee that it will not crash even if nothing happens to the project itself.