Yearn.finance (YFI) had a good weekend, and its price reached almost $ 44k. While the effects of the downward trend in the cryptocurrency world at the beginning of September were slowly wiped out, YFI almost took off. What are the catalysts for this rise of YFI?
YFI stayed for a relatively long time in the $ 10-18,000 range in August. Experts emphasized that they saw this as a stage of consolidating their foundations, and YFI managed to increase its price to over $ 38,000 by making an attack towards the end of August. Although it retreated to $ 20,000 levels, affected by the general downward trend that emerged about 2 weeks ago, it managed to stay above $ 19,500, which is the long-term support zone.
YFI, which has increased more than p in the last 7 days, was bought and sold from 20-22 thousand dollars before the rally. However, YFI managed to increase its price to $ 43,678 with its trend. After staying here for a while, it experienced a small retracement and is currently trading around $ 38,900.
YFI’s Catalysts on the Ascension Path
As a decentralized finance (DeFi) token, YFI is also positively affected by the growing interest in the DeFi world. While the DeFi sector continues to grow rapidly, it continues to offer new projects and new opportunities day by day. With the increasing popularity of yield farming and DeFi liquidity pools, along with the growing interest in the DeFi industry, the YFI price has also been steadily rising.
New products such as StableCredit USD launched by Yearn.finance are also thought to play an important role in the YFI rally. With this project, Yearn.finance has opened the multiple collateral application to DeFi users instead of the single collateral model used by MakerDAO. In this way, users will be able to show the asset they want as collateral and the liquidity problem will be largely eliminated.
Low and Limited Supply Works for YFI
Perhaps the most important feature that makes YFI so valuable is that it has both low and limited supply. Andre Cronje, founder of Yearn.finance, launched a vote last week and suggested that the YFI supply be restricted to 30,000 units. Since this voting will continue until September 18, it cannot be said that the maximum YFI supply is 30 thousand yet. However, it can be added that more than 95% of the votes cast so far are in favor of this proposal.
The fact that YFI tokens are so few compared to trillions of traditional currency notes and even Bitcoins with a limited supply of 21 million is an important detail on the way to make it more valuable. The tweet shared by the DeFiGod account on social media actually shows how important this is. DeFiGod stated that there are only 87 YFI tokens on Coinbase, one of the world’s leading exchanges.