Over the weekend YFI, the native token of Yearn.finance, reached a new all-time high at $43,966 on Binance exchange. This occurred as the crypto market was still reeling from Bitcoin’s (BTC) sharp 17.5% correction which saw its price drop as low as $9,800 on some exchanges.
As Bitcoin price slowly recovered, YFI price increased by over 100% since Sept. 9 and many analysts now believe the token will make a run at the $50K mark soon.
The daily chart of Yearn.finance (YFI). Source: TradingView.com
What’s behind YFI’s surge?
The confluence of strong technicals, new products, yield farming and the growing popularity of DeFi liquidity pools likely fueled YFI’s surge.
Prior to the rally, the price of YFI was relatively stable above $20,000, which is close to its macro support level at $19,500. After a relatively lengthy consolidation phase, YFI started an explosive rally.
Yearn.finance has also launched new products, one of which is called StableCredit USD. Lisa JY Tan, a researcher at Economics Design, explained that StableCredit USD is a new collateral system that uses Aave. Tan said:
“Using MakerDAO’s model of multi-collateral in the system, instead of just single asset collateral. You can put whatever asset you want as collaterals. Using Aave’s lending protocol so you can borrow up to 75% of the collaterals you provided.”
The prospect of Yearn.finance’s existing products, such as yVaults and Yinsure.finance, combined with new product launches are contributing to the optimism around YFI.
Technical analysts have said that when YFI surpassed $34,650, it already established a new bullish market structure.
One pseudonymous trader known as “Benjamin Blunts” said before the rally above $40,000 that YFI would likely reach new highs near $50,000. The trader said:
“YFI closing the daily above $34,650 is very significant in my opinion, 47 mins to go. But if we do, I think we’re going to all-time highs again and 50k next. I wanted a bigger dip to add but at…