Yearn.finance’s native token, YFI, has been on a tear over the past few weeks. Ever since bottoming in October, the cryptocurrency has been in a steep ascent marked by strong fundamental and on-chain trends.
First and foremost, the cryptocurrency is being accumulated by top funds in the crypto-asset space. Polychain Capital, for instance, owns nearly 2% of the total supply of the Ethereum-based token. Three Arrows Capital, too, is believed to own a large amount of the cryptocurrency.
Holding YFI gives its holders the opportunity to capture some of the cash flows generated by the Yearn.finance protocol. Yearn.finance’s main product is its yVaults, which gives users the opportunity to earn a regular yield on their deposits of stablecoins and popular cryptocurrencies. Portions of those profits are sent to a treasury, where YFI stakers can earn a regular return.
The coin is also benefiting from a broader resurgence in the DeFi space, with more capital, both from a retail and institutional perspective, entering this nascent space.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Yearn.finance’s YFI Could Soon Pass $30,000
According to a crypto-asset analyst, if YFI manages to pass $29,600 in the near future, it may begin a steep ascent higher. He recently shared the chart below, showing that the $29,600 level for the DeFi coin has been absolutely pivotal over recent weeks.
It marked the highs of a rally that took place late last month and prevented a breakdown temporarily at the start of December.
If YFI manages to hold that level, the trader said, it may be unwise to short the asset.
Chart of YFI's price action over the past few weeks with an analysis by crypto trader HornHairs (@CryptoHornHairs on Twitter). Source: YFIUSD from TradingView.com
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YFI is likely to benefit from a series of partnerships that founder Andre Cronje recently announced.
The partnerships will see the Yearn.finance team join forces with other teams such as that of SushiSwap and that of Akropolis.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: YFIUSD, YFIBTC Charts from TradingView.com Yearn.finance (YFI) is About to Pass a Pivotal Bull Level
This post was originally published on www.newsbtc.com