3 reasons why yearn.finance’s YFI token price reached a new high of $18,000
YFI, the native token of the Decentralized Finance giant (DeFi) yearn.finance, has reached a new all-time high. Over the last 12 hours, the asset has grown by 30% from $14,017 to $18,169 and entered a new phase of price discovery.
Yearn.finance’s YFI token price chart over the last two weeks
The expression price discovery refers to the scenario in which an asset touches a historical maximum and the markets look for a new peak. YFI entered price discovery for the first time in 8 days, after exceeding its previous peak of $16,666.
A hint of a new collaboration, Aave’s listing and strong technical factors
There are three likely determining factors that have caused YFI to soar to a new historical high: a potential new collaboration, the listing on Aave and strong technical aspects.
On August 28, the YFI token was listed on Aave (LEND), the largest DeFi protocol in the global market, with over $1.52 billion in total locked-in value.
As already reported by Cointelegraph, Aave received the approval of the UK Financial Conduct Authority, an event that further consolidated its dominance in the DeFi market. Jordan Lazaro Gustave, Aave’s COO, explained to Cointelegraph:
„Aave will also introduce credit delegation, where user A can delegate his credit line to user B, who can borrow against it. This process will be made possible by a legal agreement made through OpenLaw. For example, a credit delegate could be a user who wants to accumulate more credit, and possible debtors could be companies, NGOs, governments, institutions, etc.“.
Even if yearn.finance is one of the main protocols of DeFi, with almost a billion dollars in blocked value, the listing on Aave could give further impetus to YFI.
In addition to the new listing, yearn.finance developer Andre Cronje announced the Bitcoin Profit collaboration with Sam Bankman-Fried, CEO of FTX.
FTX, one of the most important crypto derivatives exchanges, has established several partnerships in recent weeks. He financed the launch of a decentralized exchange (DEX) called Serum and acquired Blockfolio.
A potential collaboration between FTX and the developer of yearn.finance aligns with the exchange activity in the DeFi and DEX market.
„I guess it’s no longer a secret, but just to lower expectations a bit, we are working on a long roadmap so don’t expect anything anytime soon. Something very interesting will come in the future“.
Moreover, yearn.finance has a lower valuation than other major DeFi protocols with a billion dollars in blocked value. For example, Synthetix is valued at over 600 million dollars, although it has less locked value than yearn.finance.