The cryptocurrency universe was already reeling from losses over the past couple of days, and reports about Andre Cronje, a prominent DeFi developer, quitting has added to this downward pressure.
As of writing, most cryptos were trading in the red, but the decline in DeFi cryptos like yearn.finance’s YFI was more as compared to BTC and Ether. Will the YFI crypto rebound in the near term, or are the bears here to stay longer? Let’s know more.
What makes yearn.finance different?
Yearn Finance or yearn.finance claims to provide DeFi aggregation services, which may enable a crypto holder to make the best out of yield farming. As DeFi gained traction, many crypto enthusiasts seemed to be flocking to platforms that aid lending and borrowing in crypto assets. The lender earns interest, which to some might seem a better alternative to undertaking regular buying and selling of their assets.
Yearn Finance claims it can maximize the yield from farming through the aggregation of DeFi protocols like Compound and Aave. As there are a number of DeFi platforms, Yield Finance project’s aggregating services might attract users. The project is said to be using two blockchain networks — Ethereum, and Fantom.
Users of Yield Finance “vaults” can deposit their cryptos, which the protocol diverts to DeFi platforms to earn the maximum yield.
Also read: As Ethereum faces competition, what is ETH’s price prediction by 2025?
YFI token
Yearn Finance uses YFI as its governance token. The whitepaper mentions that if holders of YFI token vote favorably on a certain aspect, the proposal is admitted and implemented.
Also read: 3 cryptos to watch if you are a cryptocurrency beginner
YFI crypto’s price
YFI does not rank in top the 10 or even top 50 cryptocurrencies by market cap, but the per token price is very high. Yearn Finance is the most expensive altcoin (with no linkage to BTC), and it traded at nearly US$18,300 as of writing. The market cap was nearly US$670 million.
YFI crypto price prediction
It is notable that YFI exceeded BTC’s price in November last year, but the fall since then has been sharper. In the near term, the YFI price could be shaped by sentiments like Andre Cronje leaving DeFi, and riskier assets losing value in the wake of high inflation and geopolitical disturbances. By the end of 2022, the YFI crypto may rise to US$25,000, but for this its DeFi aggregation services might have to shine.
By 2025, the YFI crypto may reclaim its US$80,000 per token status and may even reach US$100,000. But all this could depend on how DeFi protocols help crypto holders earn better returns.
Data provided by CoinMarketCap.com
Also read: What is Everdome metaverse & DOME crypto’s price prediction?
Bottom line
The exit of DeFi developer Andre Cronje seems to have dealt a blow to the sector and related cryptos. YFI’s price in the long-term, however, could be the product of Yearn Finance’s aggregation services and the protocol’s adoption by crypto enthusiasts.
Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website.
