Yearn Finance could sink 30%


YFI price rose for five straight days as investors bought falling DeFi cryptocurrencies. Yearn Finance rose to $11,350, which was the highest point since May 12 of this year. It jumped around 172% from the low this month, bringing its total market capitalization to over $358 million.

Financial Recovery

Aspire Finance is one of the oldest blockchain projects in the decentralized finance (DeFi) industry. It was created by Andre Cronje, a major player in the industry. Cronje is also credited with creating platforms like Wonderland and Abracadabra.

The platform simply allows 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 largest platforms.

Recently, however, the platform has faltered as the number of people using it to grow their wealth has dwindled. According to DeFi Llama, Yearn Finance has a TVL of around $660 million. It has been overtaken by other platforms like Lido, Maker and Compound. Yearn is built on Ethereum, Arbitrum and Fantom blockchains.

Yearn Finance was created to be the Amazon of the blockchain industry. After depositing funds on his platform, he scours the market to identify the best returns in other protocols like Aave, Curve, and Compound. Thus, users can optimize their returns in just a few steps.

YFI price rises as investors predict there will be more demand for DeFi tokens now that the industry has weathered this year’s slump. Indeed, many DeFi platforms have remained unscathed even as other centralized platforms like Voyager Digital and Celsius have filed for bankruptcy.

YFI Price Prediction

The four-hour chart shows that the Yearn Finance price has been on a strong uptrend over the past few days. It broke above the important resistance level at $8,100, which was the highest point on June 24th. Yearn broke above the 25- and 50-day moving averages while the Relative Strength Index (RSI) broke above the overbought level.

Still, with the coin extremely overbought, its price is likely to pull back over the next few trading sessions. If that happens, it will retest the support at $8,109, which is around 30% below the current level.

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