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YFI DeFi Token Surges 50%, Surpasses Bitcoin (BTC): Analyzing Reasons Behind YFI Pump

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Cover image via stock.adobe.com

Here's an analysis of possible reasons for YFI's price going through the roof in the past 24 hours

Tue, 08/18/2020 - 11:58
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YFI, the native governance asset of the yearn.finance decentralized financial ecosystem, has surpassed Bitcoin (BTC) in an instant after an insane 50 percent rally. What is driving it?

Revolution of "yield farmers"

YFI token rallied three days ago, on Aug. 15, from mid-$4,000 levels. At its peak, at about 08.30 AM (UTC) on Aug. 18, its price on Binance exceeded Bitcoin's (BTC) at $12,281.

YFI touches $12,200 on Binance
Image by Binance

As a result, in one month since YFI's launch on July 18, its price has gained an enormous 31,572 percent as its launch price was $31.65.

This behavior can be explained by the peculiarities of YFI token. First, this asset has unprecedented scarcity: only 30,000 YFI can exist. It was repeatedly stressed by the yearn.finance team that YFI has no utility and can be used for governance of yearn.finance products only.

That said, the recent upsurge was most likely boosted by the delayed FOMO of retail traders from Binance and UniswapV2. Market manipulations also cannot be ruled out: the combined volume of trading attributed to low-tier platforms (BKex, BiKi, MXC, IDCM, LBank etc.) is equal to the net trading volume registered on Binance, Uniswap and Balancer, according to Etherscan explorer.

King of rallies

Recent technological achievements by yearn.finance instruments can be treated as one more minor price driver: new "yield farming" strategies are being introduced and yCRV vaults started to offer an unbelievable 81 percent APR on locked YFI.

YFI is not new to the camp of assets that rallied brilliantly in August 2020. As covered by CryptoComes recently, many analysts admit that YFI's seven-day run from launch should be treated as the fastest 100x in crypto history.

👉 MUST READ YFI DeFi Asset Surged 100 Percent in One Weekrelated article image

After its first rally, prominent analyst and investor Qiao Wang claimed that the "fair" price of YFI is way more than $10,000. It looks like his guess has come true.

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