Why does the price of yfi coin rise so sharply (Will yfii coin rebound)?

08/12/2023 23:09 • Blockchain Briefs • 100 views

Why does the price of yfi coin rise so sharply? Today, I will explain to everyone how it has been rising.

First, let’s take a look at its introduction:

https://etherscan.io/tx/0xc8c4e6a0d1b7caf5cf88bdda2df3bf9cebafa11ad80d

At the end of 2017, yield farming started to become popular: users provided liquidity to yearn.finance (YFI). The price of yfi coin reached nearly $20 at its peak, and then declined to a few hundred dollars…

Later, in the bull market of 2018, due to the increase in lock-up volume in DeFi protocols, the price of yfi tokens continued to soar. And now, these tokens have surpassed mainstream coins such as Bitcoin, Ethereum, Litecoin, and XRP.

From the chart above, the current price trend of yfi is as follows: current price trend chart (source: coinmarketcap)

According to official yfi data, up to the time of writing, a total of 164.3 million tokens have been circulated on the platform (including liquidity mining from Uniswap, Balancer, and other protocols). Among them, Yearn.Finance is the largest lending project, issuing a total of approximately $1 billion USDC stablecoins. This means that the total yfi issuance has exceeded 40 billion tokens, accounting for about 50% of the total supply of yfi.

So why can it have such a large increase? Because its token price has been rising rapidly recently! As of the time of writing, the historical performance of yfi coin is as follows: a growth rate of 100% since the beginning of the year, and an increase of more than double in the past month; a growth rate of nearly 100% in less than a year. With the development of Yearn.Finance, the YFI price has also experienced a substantial increase: since the beginning of this year, the trading volume of the platform has exploded, but compared with other DeFi assets, the transaction amount has not increased, and in just three months, the transaction volume has tripled, even reaching hundreds of thousands of dollars.

From the table above, it can be seen that the average daily trading amount of Yearn.Finance in the past few hours is about 5 million yuan. In the past week, the cumulative trading volume on YearnFinance was about $10 billion.

Of course, if we summarize it into a niche field, it is decentralized finance-removing third-party custody services (such as banks and brokers), allowing people to deposit digital currencies into bank accounts or make deposits and withdrawals without intermediaries.

Therefore, it can be said that the decentralized world is the world of blockchain.

Below are two examples.

1. Yearn.finance is a decentralized lending market based on AAVE. The platform supports users to create and mortgage synthetic assets (such as yETH, sBTC, or renBTC) using various tokens and earn interest income. The yield is automatically executed by smart contracts, but when funds are liquidated,

Will yfii coin rebound?

Today, yfii coin has fallen again and is now close to half of its historical lowest price.

From a technical perspective, this is the biggest black swan event this year: the price of YFI soared nearly 20% in a short period of time (up to the time of writing), but then began to fall back, currently priced at about $7. And since May 11th, this asset has been oscillating at a low level until yesterday afternoon when it rebounded, currently priced at $6. So if this decline continues, is it possible for it to further rise in the future? We will wait and see.

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Why does the price of yfi coin rise so sharply (Will yfii coin rebound)?

Will yfii coin rebound?

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