Here’s why Yearn.Finance (YFI) is up 720% since July

Yearn.Finance (YFI) price trades more than 700% higher since July as the digital assets focus on DeFi continue to outperform the rest of the crypto market. Gains are adding on a daily basis, with YFI up over 35% in the last two days only. 

Fundamental analysis: DeFi trend booming

Yearn.Finance, which has become one of the most valuable DeFi coins lately, serves as a portal to different DeFi assets. The decentralized finance now holds around $8 billion worth of crypto assets and it could easily start attracting mainstream investors as well. 

One of the reasons why the YFI became so popular is that its creator, Andre Cronje, didn’t save any tokens for himself. Instead, he distributed the tokens to investors who had deposits in certain key liquidity pools contributed to his project.

At the moment, there is a total of 30,000 YFI in circulation and all of them have been distributed, but more can be created through governance. 

However, Gauntlet Network’s Tarun Chitra doubts this will happen, who is also one of the Yearn’s multisig members. So in order to acquire YFI now, users have to purchase it.

“I think the ‘no inflation’ meme is here to stay,” he said. “I think there are other ways for the system to monetize.” 

Yearn charges a 5% fee per a certain withdrawal and it serves to maintain a $500,000 treasury. Typically it has more than that figure and the excess gets distributed to YFI owners. It’s still unpredictable how much does a user earn from a vote but it’s not a very significant amount. 

Technical analysis: Astronomical ascendance

YFI price travelled almost vertically higher since the last week of July, adding more than 720% to its value and hitting an all-time high of $39,800 on the last day of August. Since, the price action corrected lower before recording more than 35% gains in the past two days. 

YFI stock daily chart (TradingView)

It’s obvious that buyers are looking to extend the overall uptrend as they potentially aim for levels above the $40k. In case you’re interested in buying YFI and riding this uptrend, the first target upside is $45,820, followed by $50,000 and $53,400.

Summary

YFI is a new hot thing in the crypto market after gaining more than 700% higher since July. The platform focus on the booming DeFi trend has been rising in a spectacular fashion, with YFI up over 35% in the last two days only. 

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