Yearnfinance (YFI) is up 58% in the past 72 hours after falling to $ 12,260 across multiple exchanges.
Three factors that could spur the dramatic rebound include: YFI is sold too heavily, the commitment of lead developer André Cronier to the project, and the ever-increasing use cases of YFI across the large ecosystem.
YFI has been largely oversold
Over the past month, DeFi tokens have undergone a severe correction, and as a result, many DeFi tokens have decreased in value by 40% -70%. The sale appears to be mostly driven by adjustments in Bitcoin (BTC) and Ether (ETH), but now that support for BTC has reached $ 11,000, traders are looking to see if YFI and other tokens continue to rally.
YFI / USDT daily chart. Source: TradingView.com
As Cointelegraph reported, the strong foundations of DeFi’s best projects were a hint that the market was oversold.
At the time, data showed that revenue from most DeFi protocols did indeed rise, while token prices had fallen sharply, indicating that it was likely below fair value.
A change in revenue due to price changes in DeFi’s major networks. Source: Twitter.com
For example, Yearn.finance was at the forefront of releasing version 2 of Warehouse.
Major product launches and upgrades usually lead to an increase in the base token, but overall weakness in the DeFi market drove YFI’s price down in September and October.
The total value of Yearn.finance products also exceeds $ 900 million. This indicates that approximately $ 1 billion of capital has been spent through the Yearn.finance platform.
The total cost is fixed in the annual financing. Source: Stats.finance
André Kronier assures society that he will not leave
Last week it was rumored that lead developer André Cronier was leaving project Yearn.finance after hackers were able to find out all the money from an unreleased project he was working on.
The hackers ended up recovering $ 8 million in the stolen money directly to Cronier, but many members of the crypto community were still angry with him.
In a recent statement, Crony said he would not leave Yearn.finance, despite recent rumors. He said:
“We are still here. We keep building. Nothing has changed. Anyone says otherwise. I just finished tweeting and being on social media.”
Cronier’s commitment to Yearn.finance is critical to YFI’s long-term direction, especially as it has been the inspiration for most of Yearn’s product development since its inception.
Vault V2 is about to expire
Faku, a developer at Yearn.finance, said the team has “come one step closer to Vault v2.”
On October 1, the Yearn.finance team officially confirmed that Yearn v2 Vaults is in active development. The team said:
Yearn v2 Vaults is under active development. Includes new warehouses and strategies. We are very happy about that. Additional information will be provided when available. ”
Any major advancements in Yearn Vault will likely positively affect YFI’s value. Most of the capital locked up in Yearn.finance is kept in vaults, allowing investors to turn a profit.
The combination of upcoming new product launches and DeFi’s overall recovery in the market keeps YFI supported at all times.