Yearn.finance (YFI) has been making headlines throughout the past few weeks, with the DeFi protocol going from being relatively unknown just a couple of months ago to now having the fourth-highest total value locked (TVL) in the entire ecosystem.
This growth has had major implications for the YFI governance token’s price, which has been rocketing higher in recent weeks.
The token just set fresh all-time highs earlier today, with it currently being worth well-over 3 BTC per YFI.
Analysts are now noting that the crypto may soon enter price discovery, as Yearn.finance futures were just added to Binance. Naturally, demand for short positions may be incredibly high due to investors thinking the crypto is overvalued.
As such, this may act as fuel for a massive short squeeze that sends the token rallying significantly higher in the days and weeks ahead.
Yearn.finance Governance Token Price Reaches New Highs as Investors Flood in
At the time of writing, the Yearn.finance governance token is trading up over 25% at its current price of $39,500. This marks a massive upswing from recent lows of $29,000 that were set earlier today when bears attempted to spark a selloff.
It also marks a notable climb from lows of $26,000 that were set just a couple of days ago when bears gained control over it following its rejection at $38,000.
YFI has since shrugged off this selling pressure and exploded higher, with a combination of massive publicity, a strong community, and incredibly strong fundamentals, all providing a boost to its underlying strength.
It is important to bear in mind that some investors are now deeming Yearn.finance an “index bet on DeFi” due to the magnitude and diversity of the pools it offers.
YFI May Enter Full-Blown Price Discovery Following Binance Futures Listing
Yesterday, Binance Futures announced that they are adding support for YFI with a maximum margin capability of 50x. Currently, the vast majority of traders are short on the token, which may provide fuel for an extension of its uptrend.
One analyst spoke about this in a recent tweet, saying:
“You already know everyone and their mom will want to short this. And it’s one of the most fundamentally bullish defi shitcoins. With the risk of putting my rep on the line: I bet this goes so…hard in price discovery.”
Unless the entire DeFi sector sees a massive influx of selling pressure, there is a strong possibility that Yearn.finance (YFI) will continue plowing higher, driven by liquidations of short positions.
Featured image from Unsplash. Pricing data via TradingView.
from NewsBTC https://ift.tt/2YQdGD9
