YFI price rose for five straight days as investors bought the dip in DeFi cryptocurrencies. Yearn Finance rose to $11,350, which was the highest point since May 12th of this year. It has jumped by about 172% from the lowest level this month, bringing its total market cap to over $358 million.
Yearn Finance recovery
Yearn Finance is one of the oldest blockchain projects in the decentralized finance (DeFi) industry. It was established by Andre Cronje, a leading player in the industry. Cronje is also credited for creating platforms like Wonderland and Abracadabra.
The platform simply enables people to earn returns from their cryptocurrencies. At its peak, Yearn had a total value locked (TVL) of over $6 billion, making it one of the biggest platforms.
Recently, however, the platform has lost steam as the number of people using it to grow their wealth has fallen. According to DeFi Llama, Yearn Finance has a TVL of about $660 million. It has been overtaken by other platforms like Lido, Maker, and Compound. Yearn is built on top of Ethereum, Arbitrum, and Fantom blockchains.
Yearn Finance was created to be the Amazon of the blockchain industry. After depositing funds in its platform, it scours the market to identify the best returns in other protocols like Aave, Curve, and Compound. As such, users can optimize their returns in just a few steps.
The YFI price is rising as investors predict that there will be more demand for DeFi tokens now that the industry has weathered this year’s crisis. Indeed, many DeFi platforms have been left unscathed even as other centralized platforms like Voyager Digital and Celsius filed for bankruptcy.
YFI price prediction
The four-hour chart shows that the Yearn Finance price has been in a strong bullish trend in the past few days. It has risen above the important resistance level at $8,100, which was the highest point on June 24th. Yearn has rallied above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the overbought level.
Still, with the coin extremely overbought, there is a likelihood that its price will pull back in the next few trading sessions. If this happens, it will retest the support at $8,109, which is about 30% below the current level.