Yearn Finance’s governance token, YFI, hit a new milestone on Friday when its price topped $ 50,000 for the first time in history.
The gains were evident when Grayscale Investments, a New York-based cryptocurrency management firm, registered an LLC for a potential Yearn Finance Trust. This prompted traders to increase their bids on YFI as Grayscale plays a vital role in raising Bitcoin prices after accumulating nearly 3 percent of the flagship cryptocurrency’s active supply for the proprietary Bitcoin Trust.
The YFI bull explains
Grayscale’s core business model offers accredited investors the opportunity to gain exposure to cryptocurrency markets by buying shares in its open private trusts that hold the affected digital assets. For example, the Grayscale Bitcoin Trust (GBTC) is so far 649,130 BTC and the cost per share is around $ 48 over the counter.
The company is collecting additional crypto assets based on institutional demand. As a result, analysts typically view their buyouts as bullish on the assets involved. Given interest in starting a Yearn Finance trust, the cops believe the move would bring high-profile investments into the decentralized financial sector.
Longing for finances to end the day on record levels. Source: YFIUSD on TradingView.comYearn Finance to end the day at a record high. Source: YFIUSD on TradingView.com
YFI hit a high of $ 50,592 on Friday. The price is now comparable to that of Bitcoin, which hit a high of over $ 49,000 on the same day.
Traders expect the price to go higher. A pseudonymous analyst on Twitter said that YFI could push for a valuation of $ 150,000 against Bitcoin based on its technical metrics. Looking back, the YFI / BTC exchange rate showed signs of breaking out of a bullish channel, leaving the analyst on a strong upside.
Yearn Finance is showing positive strength versus Bitcoin, as GalaxyBTC shows. Source: YFIBTC on TradingView.com, Yearn Finance shows positive strength versus Bitcoin, as GalaxyBTC shows. Source: YFIBTC on TradingView.com
“The YFI coin supply on the exchanges has gradually declined since November 2020, where the highest coin supply on the exchanges since inception and the price has bottomed out, suggesting a surrender has occurred,” said analysts at Santiment .
“This gradual decline in the YFI is healthy and positive as there is less selling pressure on the exchanges,” they added.
