3 key reasons why Yearn Finance (YFI) reached USD 12,800

 

Yearn Finance (YFI) was launched only one month ago and since then the blocked value of the platform has amounted to $611 million.

In the last three days, the price of YFI rose to $12,800, an increase of almost 330% since the price bottomed out at $3,005 on August 13.

Three key factors appear to be behind YFI’s recent rebound: the release of yinsure.finance, advertising driven by industry executives, and the continued explosive growth of the decentralized financial sector.

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Launch of Yinsure.finance
On August 17, the Yearn Finance development team announced the launch of a tokenized insurance platform called yinsure.finance. Through insured vaults and claims management, it creates an insurance service over the DeFi protocol. The developers said:

„In the coming weeks we will systematically launch yinsure.finance, a prototype of a new type of tokenized insurance. This post is a draft detailing the architecture and how a decentralized insurance mechanism can be created.

Venture capitalists suggested earlier this month that insurance could become the next big category in DeFi’s space.

Fred Ehrsam, the co-founder of the crypto Paradigm fund, said chain insurance to cover protocols and DAOs has the potential to evolve into a large market. Ehrsam said:

„Kryptomoney insurance – chain insurance that covers protocols and CAD – has the potential to be the next big financial release at DeFi. The size of the market could be huge and the initial wedge is credible… Whoever solves it can create one of DeFi’s fundamental building blocks, supporting billions in value today, and unlocking wider use by increasing the amount of capital that users, investors and traders are willing to commit to the system.

Yearn Finance’s entry into a relatively new chain insurance market appears to positively affect sentiment around YFI.

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Industry executives are excited about YFI
The price of YFI decreased substantially when Yam, an experimental protocol of DeFi, was attacked by a bug. Since then, YFI has recovered quickly, gaining popularity among leading industry executives.

Recently, BitMEX CEO Arthur Hayes has been exploring various DeFi protocols such as Yam and Based, and Hayes enthusiastically tweeted:

„My metamask and I are busy this morning. Yearn, b*tches. Come on, YFI to the fucking moon!“

The growth of the DeFi sector is accelerating
The total blocked value in the entire DeFi ecosystem exceeded $6.4 billion on August 17 and Maker, Aave and Curve Finance exceeded $1 billion in total blocked value.

As mentioned above, the overall expansion of the DeFi market has brought the total blocked value in Yearn Finance to $600 million. The large amount of capital reserved on Yearn Finance’s platform has been a great catalyst for YFI.

The confluence of a new product launch, the expansion of the DeFi market and the rapid growth of Yearn Finance’s user base is apparently pushing the price of YFI upwards.

Veröffentlicht in Blog