Značka: Yearn Finance

Yearn.finance risks pullback after YFI price gains 100% in less than 3 weeks

Yearn.finance (YFI) looks poised for a price correction after rising five days in a row to approach $42,000. Notably, an absence of enough buying volume coupled with overbought risks is behind the bearish outlook.The YFI price rally so farYFI’s price surged by a little over 47% in five days to $41,970 as traders rotated capital out of “top-cap” cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) and looked for short-term opportunities in the altcoin market. #DeFi assets are showing some nice signs of growth to kick off 2022. $YFI, $UNI, and $AAVE are all ticking up nicely thus far with the first Monday of the year looking #bullish for several #altcoins. https://t.co/8ujolCvt5z pic.twitter.com/ASpf1dUbtn— Santiment (@santimentfeed) January 3, 2022Yearn.finance was among the beneficiary of the so-called capital migration, given its value against BTC and ETH rose almost 47% and 41.50%, respectively, in just five days. Meanwhile, at the core of traders’ sudden buying interest in the YFI markets was a token buyback program.YFI/ETH and YFI/BTC daily price performances after token buyback program announcement. Source: TradingViewOn Dec. 16, the Yearn.finance team announced that it had purchased more than $7.5 million worth of YFI tokens from the open market at an average price of $26,651 per unit. It also revealed $45 million extra cash in its treasury that it would use to continue its YFI buyback spree.Additionally, the Yearn.finance community also proposed that the YFI treasury direct a portion of the token buyback to reward YFI holders who actively participate in Yearn Governance. The proposal (full details here) is currently in its voting phase.1/8Since the cat is out of the bag here:-Yearn has started massively buying back YFI.-They are revisiting their tokenomics to do a fee distribution to holders, currently looking at veCRV model and xSushi models.-The ratios are insane. https://t.co/CzuHhbNuhx— Adam Cochran (@adamscochran) December 16, 2021

YFI’s price surged by more than 100% against the United States dollar after the token buyback announcement.YFI’s price correction risksHowever, YFI’s trading volume fell despite the rally, suggesting the low conviction among traders in its upward movement. YFI/USD daily price chart featuring price-volume divergence. Source: TradingViewTypically, a bearish divergence between price and volume leads to either correction or consolidation until conviction increases. As a result, the likelihood of YFI at least pausing its ongoing price rally is high, with its daily relative strength index also entering its overbought zone above 70, a sell signal.Related: YFI price gains 46% in just four days after Yearn.finance’s $7.5M buybackAdditionally, the Yearn.finance token’s latest price rally has brought it closer to a known inflection zone near $40,000, as shown via the Fibonacci retracement graph in the chart below.YFI/USD three-day price chart featuring Fib entry and exit levels. Source: TradingViewIn detail, the 0.618 Fib line near $40,113 has been limiting YFI’s upside intraday attempts. The same level was instrumental in stopping the token’s price rally between October and November, which later led YFI’s price to its 12-month low near $17,000.Nonetheless, if bulls manage to push YFI’s price above the 0.618 line decisively, they may also take the token out of its multi-month range defined by about $25,500 as support and $40,000 as resistance. In that scenario, YFI’s next upside target may move toward the 0.5 Fib line around $51,000.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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YFI, HXRO and AR post gains even as Bitcoin price dips to $45.5K

Bitcoin (BTC) bulls took another beating on Dec. 17 as a midday onslaught dropped the price to $45,500. The price did manage a quick bounce back to $47,000 but sweeping a new daily low could be a sign that additional downside is in store.Amid the wider market downturn, several altcoins provided weary traders with a source of refuge as token buybacks and increased network activity helped bolster their prices and provide shelter from the storm. Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets ProData from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24-hours were Yearn.finance (YFI), Hxro (HXRO) and Arweave (AR). YFI benefits from token buybacksYearn.finance is a decentralized finance (DeFi) aggregator service that utilizes automation to allow investors to maximize their profits from yield farming. Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $18,844 on Dec. 15, the price of YFI shot up 56.48% to a daily high of $29,488 on Dec. 17 as its 24-hour trading volume spiked 220% to $844 million. YFI/USDT 4-hour chart. Source: TradingViewThe sudden surge higher in YFI comes as the project revealed that it has been buying back tokens since November after the community voted to improve the tokenomics for YFI. To date, the protocol has purchased 282.4 YFI at an average price of $26,651 and has indicated that further buybacks will be conducted in the future using funds from the project’s $45 million treasury. Hxro features on the TD Ameritrade NetworkHxro is a cryptocurrency options trading protocol that operates on the Ethereum (ETH) network and offers users access to popular cryptos including BTC, Ether, Dogecoin (DOGE) and Solana (SOL). VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for HXRO on Dec. 14, prior to the recent price rise. The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.VORTECS™ Score (green) vs. HXRO price. Source: Cointelegraph Markets ProAs seen in the chart above, the VORTECS™ Score for HXRO elevated into the green zone on Dec. 14 and reached a high of 77 around 45 hours before the price increased 13.2% over the next day. The boost in HXRO price comes after the co-founder of Dan Gunsberg was featured on the TD Ameritrade Network’s Market on Close podcast discussing the future of Bitcoin and the evolution of the wider cryptocurrency ecosystem. Related: New survey reveals 83% of millennial millionaires now own cryptoArweave sets a new daily transaction recordArweave is a decentralized storage network designed to be the first truly permanent information storage network that is backed by a sustainable endowment. VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for AR on Dec. 14, prior to the recent price rise. VORTECS™ Score (green) vs. AR price. Source: Cointelegraph Markets ProAs seen in the chart above, the VORTECS™ Score for AR climbed into the dark green zone on Dec. 14 and hit a high of 77 around sixteen hours before the price increased 40.78% over the next two days. The move higher in the price of AR comes as the transaction count on the protocol’s Bundlr Network hit a new all-time high of 2.19 million transactions which marked a 50x increase in the maximum daily transactions from less than a year ago. The overall cryptocurrency market cap now stands at $2.192 trillion and Bitcoin’s dominance rate is 40.6%.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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YFI price gains 46% in just four days after Yearn Finance's $7.5M buyback

Yearn Finance (YFI) emerged as one of the best performers in the crypto market this week, rallying by over 46% in just four days to reach a two-week high above $29,100.YFI/USD daily price chart featuring its four-day bull run. Source: TradingViewThe gains surfaced primarily as Yearn Finance revealed that it has been buying back YFI en masse since November in response to a community vote to improve the YFI token’s economics. The decentralized asset management platform purchased 282.40 YFI at an average price of $26,651 per token — a total of over $7.50 million.Furthermore, Yearn Finance noted that it has more than $45 million saved in its Treasury and has “stronger than ever” earnings. As a result, it would — in the future — could deploy its income to buy back more YFI tokens.Now that the Treasury has more than $45 million saved up and with earnings stronger than ever, expect much more aggressive buybacks. What will you do anon?2/— yearn.finance (@iearnfinance) December 16, 2021Adam Cochran, partner with activist venture fund Cinneamhain Ventures, noted that Yearn Finance makes about $100 million per year in just fees collected from Vaults, its flagship smart savings account service that maximizes the value accrual of deposited digital assets.The analyst further highlighted that Yearn had attracted more than $5 billion in total value locked (TVL) against a market capitalization of $781 million. That being said, the Yearn Finance protocol earns one of the highest fees per TVL, giving it enough liquidity to sustain its token buyback strategy in the future.The total value locked inside Yearn Finance vaults. Source: DeFi LlamaYFI undervaluedCochran further compared Yearn Finance’s profit-to-sales (P/S) and profit-to-earnings (P/E) ratios with another “payout-based” protocol Curve, highlighting that YFI remained undervalued compared to Curve’s staking token, CRV.In detail, the P/S ratio indicates that how much investors are willing to pay for a company’s stock based on its sales per share. The P/E ratio shows investors’ decision to buy a stock based on the company’s past or future earnings. In both cases, a lower reading indicates an undervalued stock.”Their P/S ratio is 3.6x and their P/E is 7.9x,” wrote Cochran about Yearn Finance, adding: “Those numbers for other payout-based protocols like Curve are 71.9x and 143x, respectively. So around times the multiple valuations for someone who has fees on.”7/8Outside of holding $ETH, $YFI is actually my top pick for all of 2022.I’m stupidly long on Yearn both in terms of my capital but also investing my time as I expect to spend a lot of time building here.— Adam Cochran (@adamscochran) December 16, 2021

YFI to $40K next?While Yearn Finance’s decision to buy back over $7.50 million worth of YFI helped boost its prices, the cryptocurrency also received an additional upside boost from a historical accumulation range.The area between $18,500 and $20,000 has been attracting buyers on each YFI price dip since November 2020. It also held up against bears in September 2020, leading to a price rebound toward $40,000.YFI/USD three-day price chart featuring Fakeout range. Source: TradingViewIf YFI holds the $18,500-$20,000 range as support, and further rises above $24,580, or the 0.786 Fib line of the Fibonacci retracement graph in the chart above, its next upside target will be $40,000, a level coinciding with the 0.618 Fib line.Related: As Yearn.Finance’s yield vaults grow, ‘crop’ projects define boundariesPopular crypto trader Cuban noted that YFI’s fully-diluted valuation (FDV) is under $1 billion, which is “criminal considering the potential and the team behind.” He added:”Macro crypto wise, I believe we have a big Q1 coming up fundamentally and a lot of people gonna be left on the sidelines after de-risking EOY.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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