With the 10% drop, Yearn Finance (YFI) joins other DeFi projects in free fall in the last 24 hours
Yearn Finance (YFI) and other major cryptocurrencies in the DeFi space have plummeted in the past 24 hours, despite the strength of Bitcoin’s price. Yearn Finance (YFI) alone fell 10% in the last 24 hours and more than 20% below its historical record set just a few days ago. This makes it one of the worst performing crypto assets in the top 100.
Bitcoin, by contrast, has risen 3% in the past 24 hours, with the Federal Reserve confirming its “dovish” position on monetary policy.
Altcoin could suffer even more if ETH drops below $ 350, said a major BitMEX trader recently.
Commenting on the chart below, which shows that the leading cryptocurrency (which also acts as an altcoin barometer) is about to lose important support, he said:
“Superimportant level for $ ETH: currently $ ETH and its ERC20 minions appear to be leading the market, I would not be surprised to see another day of -25% across the board for #DeFi tokens if $ ETH trades below 350.”
Although YFI’s short-term future price appears to be in the air, most agree that the project’s long-term prospects remain in a positive state.
Tyler Reynolds, a Google employee and close follower of the crypto space, recently noted that, according to its price for free cash flow analysis, YFI could be traded reasonably at more than $ 100,000.
This is based on YFI’s governance contract, which generates income every day for users who transact on the Yearn.finance platform.
Analysts expect the project’s revenue to increase over time as the Ethereum ecosystem grows, directing more capital and higher yields to the Yearn.finance ecosystem.
This could mean that the intrinsic value of the YFI will increase over time, dragging the price of the currency upwards.