No matter how much the rise of Chainlink affects the cryptocurrency market; overshadowed by the advent of an extremely rare coin that has become more expensive than itself: Yearn.Finance (YFI).
The ultra-scarce DeFi digital asset has been playing to the top since its debut. Despite a massive drop of $ 20,000 per token from local peaks, the asset recovered over 50% as Bitcoin and Ethereum stagnated. But what was the reason for YFI’s success?
Where Is The DeFi Trend Heading?
The DeFi trend took a wild and bizarre turn, bringing back the once-experienced ICO boom by investors.
The coins that just came out of the DeFi furnace have left many crypto investors diving with a bad taste in their mouths; Elsewhere in the DeFi space, assets have been far more satisfying.
Take Yearn.Finance for example. While this DeFi altcoin is around $ 5,000; rose to almost 40 thousand dollars. The highest price currently appears to be four times more valuable than Bitcoin’s price last week.
Bitcoin, Ethereum, and other top crypto assets continue to provide support for the strong hold initiative. However, YFI left these powerhouses in the dust, showing how much momentum has risen.
As a result of this bullish momentum that helped YFI recover 50% of its recent losses, the top two cryptocurrency assets continue to perform poorly.
If this acts as the next target, YFI could fly to retest $ 36,000 in the coming days. If the DeFi token can pass there, a new all-time high can be seen.
As for what fueled the massive rally of YFIs, DeFi is currently an unstoppable trend, attracting investors with its appetizing appeal. The token, which soared from $ 5,000 to $ 30,000 so quickly, caught the attention of all cryptocurrency market participants.
It only has 30,000 YFI tokens, and this gives the asset more scarcity than Bitcoin. Low supply is also the primary reason why the high price per coin and the price of the asset are so volatile. However, the same volatility has recently made YFI even more attractive to cryptocurrency investors than Bitcoin or Ethereum because the asset can easily beat them in momentum.