Yearn.finance (YFI) Just Dropped 10%: Here’s What’s Driving the Move
Yearn.finance (YFI) has dropped over 10% in the past 24 hours as sellers have begun to mount pressure. The coin now trades under $30,000, a pivotal pyschological and technical support level that held on previous downtrends.
The coin seems to be moving lower due to overall weakness in the DeFi space, spurred by a number of fundamental trends.
Analyst “Theta Seek” recently shared a Twitter thread outlining why the decentralized finance ecosystem could be reaching a medium-term plateau. He cited a confluence of reasons, some of which are as follows:
Due to this weakness in DeFI, a swath of other tokens related to the space have dropped in the past few days.
Long-Term Fundamentals Still Bullish
While YFI is hurting from a wider drawdown in the DeFi market, the long-term fundamentals of the project remain bullish.
Mechanism Capital, a crypto-asset firm headed by Andrew Kang, published a framework on YFI’s valuation just recently. The research piece suggested that the bullish discounted cash flow anaylsis of Yearn.finance is in excess of $300,000:
The firm added that there is much capital entering the DeFi space that could drive YFI much higher than it is now:
Yearn.finance continues forward on a short-term time frame as well, with its developers launching innovative projects and the YFI community gaining steam.
Featured Image from Shutterstock Price tags: yfiusd, yfibtc, yfieth Charts from TradingView.com Yearn.finance (YFI) Just Plunged by Over 10%: Here's What's Driving the Move
Originally from Bitcoinist.com https://ift.tt/3hNyRfq
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