Yearn Finance’s Token Hits $50K Before Bitcoin Does: Price Analysis
Yearn Finance’s token YFI hits $50K, marking a new milestone as the price crossed over this mark for the first time ever as we are reading more in our latest cryptocurrency news.
The massive gains appeared as Grayscale Investments, the popular crypto management company registered an LLC for prospective YFI trust. This prompted the traders to bid on the coin given the company’s critical role in boosting the price of BTC upwards after accumulating about 3% of the currency’s active supply for its BTC Trust.
Grayscale’s main business model offers accredited investors the opportunity to gain more exposure in the market by purchasing shares of the open-ended private trusts that are able to hold the cryptocurrency in question. For example, the Grayscale Bitcoin Trust has 649,130 BTC to date and its share cost is about $48. The company also accumulates additional crypto assets by looking at the demand so therefore the analysts consider its buyouts as bullish strategies. As it shows interest in launching a YFI trust, the bulls believe that the move will also bring more investments from high-profile investors into the DeFi space.
Yearn finance’s token also peaked at $50,092 and its price is comparable to Bitcoin which hit $49,000 on the same day. The traders await the price to grow higher as one trader on Twitter stated that YFI will push for $150,000 based on the technical data against BTC. The pair’s exchange rate showed signs of breaking out from the bullish channel which left the analysts with a strong upside bias. YFI also shows some strength over Bitcoin as the data from GalaxyBTC shows. An analyst from Santiment wrote:
“YFI coin supply on exchanges has been gradually decreasing since November 2020 where it saw the highest Coin supply on exchanges since launch and price bottomed out, suggesting that capitulation has taken place. This gradual drop in YFI is healthy and positive as there’s less sell pressure on exchanges.”
In the meantime, Bitcoin prepares to make another surge higher as some analysts predict a move above $50K in the near-term.