This year, Yearn.finance has launched its own governance token, YFI, which has grown at an astonishing rate to its $43K peak. Its success has spawned multiple forks, such as DFI.money and YFValue.The token has dominated headlines in the past couple of months. However, since these recent ATHs, both the project’s TVL [total value locked] and the native token’s value has plummeted. The TVL currently stood at $594 million, a little less than half of the figures slashed since its peak.
This was primarily due to the significant capitulation which drove the coin to new lows as most DeFi coins suffered significant corrections in recent weeks. The mishap with Yearn.Finance, Founder, Andre Cronje’s secret Eminence [EMN] project further added to the woes.
However, this trend was showing reversal patterns. Over the past three days, YFI was up by more than 42%. The latest uptrend resumed after Ethereum’s value surged on Friday which propelled not only several altcoins to post gains but also catapulted DeFi tokens to climb closer to their respective targets.
YFI rebounded from its local lows of $12,000 to its press time of $17,108 as it headed to breach yet another crucial resistance. Additionally, YFI was also deep in the oversold territory as depicted by the RSI indicator in the daily chart. On the brighter note, RSI created an oversold reading followed by a higher low that matched correspondingly lower lows in the price. This was indicative of rising bullish momentum, and a break above oversold territory could be used to trigger a new long position in the coming days.
According to the latest Skew charts, the DeFi darling had a “pretty big turn around” session. In terms of aggregated daily volume on Huobi, YFI had started to resume an uptrend after weeks of dull and stagnant price action.
DeFi darling YFI is having a pretty big turnaround session, up 35% in last 24h pic.twitter.com/ru745uP55J
— skew (@skewdotcom) October 9, 2020
Meanwhile, Yearn was under active development which is slated to incorporate new vaults and strategies. Significant progress on this front is likely to bolster the price action of its governance token.