Yearn.finance (YFI) has been one of the hardest-hit crypto-assets over the past few weeks and months. From its all-time high of $44,000, the coin has declined to $14,000 as of this article’s writing. The coin remains one of the leading DeFi assets, touting a market capitalization of just under $500 million.
Some fear the asset could decline even further after an early adopter of the protocol sent a large sum of YFI to exchanges. It is unclear what this individual will do with these funds, though some assume they will be sold for stablecoins or another cryptocurrency like Ethereum or Bitcoin.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Yearn.finance Farmer Sends Large Sum to Exchanges
As noted by crypto analyst “Hsaka,” a pseudonymous individual that farmed the most YFI just sent 100 coins, worth around $1,400,000, from their wallets to Binance.
Some think this unnamed individual may proceed to dump YFI on the market, causing the asset to slide further than it already has.
Of note, this isn’t the first time this individual has done so: another address connected to the main address systematically collected, then sent hundreds of YFI over the past two to three months to Binance.
From the largest $YFI farmer 👀
Psyops or dump in prod? https://t.co/qMLem0XEg8
— Hsaka (@HsakaTrades) October 26, 2020
Coins can also be sent to exchanges for other purposes, though. For one, if contracted by an exchange, a user with a large sum of a single coin can make a market, enabling users of the exchange to trade in and out of the asset with minimal slippage.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Technicals Getting Back on Track
Despite the potential for a YFI drop as a result of the 100 coin sell-off, the altcoin’s technicals are getting back on track. One crypto-asset analyst shared the chart below, showing that the native Yearn.finance coin is expected to shoot dozens of percent higher if it manages to breach a notable resistance:
“Break through the top of this immediate resistance and we could easily see it stretch it’s wings again.”
Image Courtesy of Cold Blooded Shiller. Source: YFIUSD on TradingView.
There are other trends indicating that the coin is expected to move higher as technical and fundamentals align.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Top Yearn.finance (YFI) Farmer Sends $1,400,000 Worth of the Coin to Binance
This post was originally published on www.newsbtc.com