September 9, 2020 mark NewsBTC.com News 0
As incredible as Chainlink’s rise has been across the crypto market, it has been eclipsed by the emergence of one extremely rare coin that has since become even more expensive than Bitcoin itself: Yearn.Finance (YFI).
The ultra-scarce DeFi digital asset has been defying gravity since its debut.And although there was a massive $20,000 collapse per token from local highs, the asset has recovered over 50% while Bitcoin and Ethereum stagnate.But what’s the reason for YFI’s runaway success? DeFi Bandwagon Has YFI Beating Out Bitcoin And Ethereum With 50% Recovery
The DeFi trend has taken a wild and wacky turn , bringing back memories of the ICO boom, complete with investors being burned by the hottest new token.
Pizza and Hot Dogs fresh out of the DeFi oven have left many crypto investors taking the plunge with a bad taste in their mouths, elsewhere in the DeFi space assets have been far more rewarding.
Take Yearn.Finance for example.This sizzling hot DeFi altcoin has grown from $5,000 to just under $40,000 at the high.The peak price is currently four times as valuable as Bitcoin’s price over the last week .
Related Reading | Pizza & Hot Dogs: How Uniswap’s Profit Buffet Can Burn Crypto Investors
Bitcoin, Ethereum, and other top crypto assets have been consolidating at support in an attempt to hold strong .YFI, however, has left these powerhouses in its dust, showing off just how bullish the momentum has been.
It’s this bullish momentum that has helped YFI regain as much as 50% of its recent losses, while the two top reigning crypto-assets continue to perform poorly YFIUSDT Daily Price Chart Support and Resistance Levels | Source: TradingView Why Is The Yearn.Finance Secret To Rapid Success?
YFI’s more than 50% recovery stopped short as daily resistance but may have found support at $22,000 per token.Four daily closes above that key level gave bulls enough confidence for another push higher.
The fall to daily support also aligns with a retest of the mid-Bollinger Band, that thus far been holding.A retest of the mid-BB that holds strong often rises again towards the top of the Bollinger Bands .
YFIUSDT Daily Price Chart Bollinger Bands | Source: TradingView
If that acts as the next target, YFI could soar to retest $36,000 in the days ahead.If the buzzing DeFi token can get through there, a new all-time may be set.
As for what’s fueling YFIs enormous rally, DeFi is currently an unstoppable trend luring investors in with its appetizing buffet of profits .The token rising from $5,000 to over $30,000 so quickly has caught the attention of all crypto market participants.
Only 30,000 YFI tokens exist, giving the asset even more scarcity than Bitcoin.The low supply is also a primary reason for the high price per coin, and why the asset’s price is so extremely volatile.That same volatility, however, has made YFI clearly more attractive to crypto investors than even Bitcoin or Ethereum recently, as the asset is easily beating them out in momentum.
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