The Yearn Finance token has surprised the crypto world in recent weeks and now many believe it can reach $ 50,000
The popular governance token Yearn.Finance (YFI) is expected to reach a new all-time high of $ 50,000, say some analysts. With cryptocurrency markets still feeling the effects of Bitcoin’s fall below the $ 10,000 level, YFI has proven to be one of the cryptocurrencies that has barely been affected by the fall.
YFI appreciated more than 100% on 9 September. On the same day, Bitcoin just recovered to $ 10,211 after the bears continued to push the price below $ 10,000 in the previous five days. YFI, on the other hand, recovered 22% on 9 September and reached $ 43,966 four days later. A sale took place the next day.
Prior to this high, YFI was trading comfortably for $ 20,000, which was Bitcoin’s biggest high ever in 2017.
YFI is the governance token for Yearn.finance, which aggregates the different yields of the DeFi protocols.
Analysts expect YFI to reach $ 50,000 due to strong yield farming and the growing popularity of DeFi liquidity pools. They also attributed the increase to Yearn.finance’s new product – StableCredit USD, a guarantee system that uses the Aave protocol that allows users to borrow up to 75% of the guarantees provided.
Although $ 50,000 is the next target for YFI, some traders regretted the missed opportunity to increase their holdings in YFI. “I want a bigger dive, but at this stage, I don’t think I can do it”, said Benjamin Blunts, a trader, on Twitter.
Analysts Michael van de Poppe said YFI could probably target $ 75,000, but also maintained that $ 50,000 is a potential area of resistance. Van de Poppe said that the main bottom support area is at $ 30,000 and, if you can’t handle it (as you’ve shown in the past few days), the next one is at $ 21,000. Still, the analyst admits that any drop is unlikely, given that YFI was listed on Coinbase.