When Andre Cronje launched Yearn Finance (YFI), the DeFi craze was in full swing. The two events combined to send the sector into a complete frenzy. Uniswap’s UNI airdrop and governance token YFI broke all predictable resistance and reached $30,000.
At the time, Bitcoin was trading at around $10,000. Now, after a downtrend, YFI seems ready to reach new highs. YFI is trading at $51.386 on the 24-hour chart with a gain of 15.4%. During the week, YFI rose 15.9%.
Data from DeFi Pulse indicates a very optimistic outlook for DeFi. Continuing its upward trend since February 2021, the total locked value of the DeFi ecosystem has reached an all-time high of $57.9 billion. The top three protocols, Compound, Maker, and Aave alone hold over $20 billion.
During this DeFi season, trader Sean Nance said that YFI could “soon” go up to $270,000 per token. According to the trader, the YFI market at that price will take it away from the top 10 cryptocurrencies, implying further upward movement. Nance said:
I soon had 270k on YFI, a pretty reasonable goal. I’m not sure if you all are ready for what’s coming to the market.
Yearn Finance aims to improve.
Nance said YFI recommended investors buy more YFI and YFII by setting support levels at $34.170 and $20.335. In support of this thesis, investor Daniel Cheung said Yearn Finance’s Total Value Locked reached a new ATH today at YFI prices, amounting to $3 billion.
“YFI is huge,” Cheung said, adding that Yearn Finance was “undervalued” with talk calling for recognition in the sector. Current Yearn Finance growth may be among the highest in DeFi. Therefore, Cheng expects YFI to increase in value even further. He added:
V2’s $1.5 billion TVL alone would result in $30 million in management fees. Add in performance fees for all coffers and Yearn’s treasury farming revenue, and I wouldn’t be surprised if running revenue exceeds $100 million. The market is starting to appreciate undervalued protocols with excellent fundamentals (…)
The Yearn Finance community appears to be very active with its governance model. Attorney Gabriel Shapiro has been researching new operational governance models with user “Tracheopteryx”.
Via his Twitter handle, Shapiro described the proposal as “an attempt to create a philosophy of governance” rooted in real-life situations, based on what the lawyer described as “realpolitik.” Shapiro Added:
(…) When applied to longing, we call this philosophy “bounded delegation.” The primary role of YFI holders is as a system to help decentralize and fine-tune the parameters of the legitimate exercise of power within the community.
With a large number of partnerships, an active community from which to gain more strength, and a strong foundation, YFI has a ticket to the moon to take off in the coming months.