YFI prices have risen for five straight days as investors buy into the drop in DeFi cryptocurrencies. Yearn Finance rose to $11,350, the highest since May 12 this year. It has risen about 172% from its lowest level this month, bringing its total market capitalization to more than $358 million.
Desire for financial recovery
Yearn Finance is one of the oldest blockchain projects in the decentralized finance (DeFi) industry. It was founded by industry leader Andre Cronje. Cronje is also credited with creating platforms such as Wonderland and Abracadabra.
The platform simply enables people to earn rewards from their cryptocurrencies. At its peak, Yearn had a total value locked (TVL) of over $6 billion, making it one of the largest platforms.
Recently, however, the platform has lost momentum as the number of people using it to increase their wealth has declined. According to DeFi Llama, Yearn Finance’s TVL is around $660 million. It has been surpassed by other platforms like Lido, Maker and Compound. Yearn is built on the Ethereum, Arbitrum and Fantom blockchains.
Yearn Finance was created to be the Amazon of the blockchain industry. After depositing funds on its platform, it searches the market to determine the best returns among other protocols such as Aave, Curve, and Compound. Therefore, users can optimize their returns in just a few steps.
YFI prices are rising as investors predict that demand for DeFi tokens will increase as the industry weathers the crisis this year. In fact, even as other centralized platforms like Voyager Digital and Celsius filed for bankruptcy, many DeFi platforms were left unscathed.
YFI Price Prediction
The four-hour chart shows that the Yearn Finance price has been in a strong bullish trend over the past few days. It has risen above important resistance at $8,100, the June 24 high. Yearn bounced back above the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has risen above overbought levels.
Nonetheless, as the coin is extremely overbought, its price is likely to pull back in the next few sessions. If that happens, it will retest support at $8,109, which is about 30% below current levels.