Top DeFi Coin Yearn.finance (YFI) Just Slipped By 10%
- Yearn.finance (YFI), a coin that has rallied over 1,000,000% since its listing price in July, has slowed down rapidly over recent days.
- The coin now trades for $34,000, over 22% below the all-time high just shy of $44,000.
- The coin is down 10% in the past 24 hours alone, underperforming both Bitcoin and Ethereum.
- The two cryptocurrencies are pressing higher as the Federal Reserve confirms its dovish stance on monetary policy.
- YFI’s price action is similar to that of other top altcoins — most of which have sunk in the past 24 hours.
- Yearn.finance is expected to move higher in the long term as the project continues its expansion.
Top DeFi Coins, YFI Included, Drop Amid Market Correction
Yearn.finance (YFI) and other top cryptocurrencies in the DeFi space have plunged in the past 24 hours despite strength in the Bitcoin price.
YFI alone is down 10% in the past 24 hours and over 20% below its all-time high set just days ago. This makes it one of the worst-performing crypto assets in the top 100.
Bitcoin, by contrast, is up 3% in the past 24 hours as the Federal Reserve confirms its dovish stance on monetary policy.
Altcoins may suffer further if ETH slides under $350, one prominent trader on BitMEX recently.
Commenting on the chart below, which shows that the leading cryptocurrency (which also acts as an altcoin barometer) is on the verge of losing an important support, he said:
“Super important Level for $ETH: Currently $ETH and it’s ERC20 minions seem to be leading the market, would not be surprised to see another -25% day across the board for #DeFi tokens if $ETH trades under 350.”
Chart of ETH's price action over the past few weeks with analyis by crypto trader Flood (@ThinkingUSD on Twitter). Chart from TradingView.com
Yearn.Finance Remains Fundamentally Bullish
While YFI’s short-term price future may seem to be up in the air, most agree that the project’s long-term prospects remain in a positive state.
Tyler Reynolds, an employee at Google and a close follower of the crypto space, recently noted that per his price to free cash flow analysis, YFI could reasonably trade at over $100,000.
This is based on YFI’s governance contract, which generates yields every day by users who transact on the Yearn.finance platform.
Analysts expect the project’s revenues to increase over time as the Ethereum ecosystem grows, driving more capital and higher yields into the Yearn.finance ecosystem.
This could mean that YFI’s intrinsic value will increase over time, thereby dragging the price of the coin higher.
— Tyler Reynolds (@tbr90) September 16, 2020
Featured Image from Shutterstock Price tags: yfiusd, yfibtc Charts from TradingView.com Top DeFi Coin Yearn.finance (YFI) Just Slipped By 10%