However, the following weeks witnessed huge community involvement to solve the reserves issue. Andre Cronje, the creator of the Yearn.finance protocol, even shared his frustration by writing a blog titled, “ Building in DeFi Sucks.” The Yearn.finance group had no reserves set aside for its core contributors that limited it from gaining any upside exposure. Its main problem heading into the year was funding deficits. In retrospect, Yearn had a rocky beginning in 2021. But looking closely, what worked in the favor of the Yearn.finance token - at least in the current quarter - is its ability to cast aside a flurry of its major issues. Technically, YFI served as a hedge as the rest of the cryptocurrency market returned from its overbought levels. For instance, Dogecoin remained a scene-stealer for most of the first and second quarters, rising by more than 19,000% to eventually outshine other large-cap altcoins. The token surged by almost 160% compared to its altcoin peers’ thousands of percentages worth of upside gains. Yearn.finance’s YFI has been comparatively weaker so far in 2021. Each fell within the range of 9%–12%, again due to traders’ inclination to withdraw profits after the tokens’ supersonic price rallies in the previous sessions. Meanwhile, the biggest losers on a 24-hour adjusted timeframe were Dogecoin ( DOGE), XRP, Polkadot’s DOT and Litecoin ( LTC). Its strong positive correlation with other top digital assets also pushed their prices lower.įor instance, Ether ( ETH), the second-largest cryptocurrency by market capitalization, plunged back below $4,000 on profit-taking sentiment. At first, Bitcoin continued to show weakness after failing to log a breakout above a psychological resistance level of $60,000. The massive upside moves in the Yearn.finance token market appeared as its top rivals underperformed severely. Meanwhile, at its intraday peak, the pair’s bid was 1.247 BTC, up 58%.
Tuesday morning, the YFI/BTC exchange rate was near its five-month high of 1.192 BTC. The token performed equally well against Bitcoin ( BTC), the flagship cryptocurrency whose own uptrend slowed down after hitting a milestone high of roughly $65,000 last month. Nevertheless, the drop appeared marginal compared to the prevailing uptrend, hinting that YFI could continue its upward momentum following a short-term consolidation period. The pair quickly retraced lower as traders decided to realize their profits, hitting roughly $67,067 as of 7:36 am UTC. The YFI/USD exchange rate added $6,258, or 10.02%, to reach $68,748 ahead of the London opening bell. A lackluster cryptocurrency market did little in offsetting Yearn.finance’s bullish bias as the price of its governance token, YFI, reached new record highs in United States dollars on Tuesday - just shy of $70,000.