Yearn.finance (YFI), is a governance token that was originally thought to be worth $0, is now becoming the trend. Today it is very close to reaching the price of Bitcoin. How did it happen, find out below.
Yearn.Finance (YFI) reaches historic high
Low supply, high demand
Today YFI is trading at $10,442 per unit, which is 88% of the price of Bitcoin.
A few hours ago the price of this token peaked at $11,275, representing just over 99% of the BTC price, and it looks like it may soon surpass it.
Without a doubt, the determining factor for this token’s high value is the low supply that is available along with a growing Bitcoin Compass demand.
Only 30,000 units of YFI are available, and as if that were not enough, 60% of this total is blocked.
With the exponential growth of the use of decentralized finance, also known as DeFi, the price of this token went to the moon, as it is the main vehicle in a network that provides its users with the ability to control their finances.
While the token is gaining ground, one of the main contributions of confidence to the project is its integration into the main exchanges, which in turn immediately increases demand.
On August 10, Binance included the DeFi YFI token in its list, and only when it did so, its price shot up 50%, a sample of what can happen with a cryptomoney where demand completely outstrips supply.
YFI increases by 50% thanks to the Binance effect
Technical analysis of the DeFi YFI token
It’s only 4 weeks that this cryptomontage of life has, and its price hasn’t stopped surprising. With its incredible rise it is more than clear that its short term trend is totally bullish.
This direction is supported by the 8-day EMA and 18-day SMA moving averages, which are currently far from the price, and may work as dynamic supports if the price seeks to fall.
We are looking at a developing momentum, with no sign that it will end soon, so it is likely that as the hours go by we will see a new all-time high.