The value of Yearn Finance’s YFI token surprised us all when it nearly quadrupled the value of Bitcoin (BTC) in just a few months, but now, with more than 75% of its value lost, this token continues to face a relentless decline.
Several analysts and experts point out that the value of the token DeFi, which gained great popularity by surpassing the value of Bitcoin By almost 250%, it will suffer a new decrease in its price that could take it close to $7.500 USD. YFI was worth close to $45.000 USD per unit in mid-September, but the immense selling pressure it faces, a divided community and poor performance in its vaults, are some of the factors that are causing this token to lose much of its value, currently positioned near $9.500 USD per unit and showing signs of continuing the downward trend.
Source: CoinGecko
In the month of October alone this token lost nearly 65% of its value, although its developer, Andrew Cronje, continues to present proposals seeking to motivate and encourage its growth. Analysts suggest that the value of the token will reach $7.500 USD after it lost the support of $10.000 USD in less than 24 hours.
It may interest you: Ethereum Vaults Launched: How Did Yearn Finance Become So Big on Ethereum?
Changes and new proposals
The overwhelming loss of liquidity suffered by Yearn Finance, one of the decentralized finance (DeFi) protocols that quickly gained popularity after its launch in July, thanks to its incredible performance, is leading its developer to change several of its strategies, as they have become unsustainable. A clear example of this is its YETH vault, which recently collapsed generating less than 0,5% annual return, when it initially offered a 100% return.
On the other hand, the platform is presenting an improvement proposal to increase the rewards of its investors, in order to attract a greater number of interested parties to invest within this protocol and increase its liquidity. The Yearn Finance governance proposal seeks to redistribute the rewards of the DeFi protocol and allocate them to the purchase of YFI tokens within the markets.
Other developments by Andre Cronje
Meanwhile, Cronje launched a new DeFi protocol, dubbed Keep3r Network, whose KP3R token exceeded 3.600% growth in just a few hours. However, after its announcement, this token reached $360 USD per unit, but as of the date of this publication its value is $152 USD, as shown by the platform CoinGecko.
On the other hand, Cronje, the acclaimed developer of Yearn Finance and Keep3r Network, is also disdained by many in the crypto community, due to the hasty announcement of the protocol. Eminence, which was not completed and was the victim of a hack that caused the loss of 15 million dollars to its investors, who decided to deposit their investments there without fully understanding the project.
Finally, while the value of this and several other DeFi tokens plummets, the value of Bitcoin strengthens and remains stable. At press time, the cryptocurrency market leader has a value of $13.860 USD per unit.
Continue reading: A look at the evolution of Decentralized Finance (DeFi)
