Yearn Finances governance token YFI took a massive fall on the charts as the DeFi hype died down in early September, falling from close to $40K to below $8K. However, things were quick to turn around for YFI in November, with the token able to register massive gains since, enabling it to rise by over 261 percent to its press time trading price of $26,985.
According to Santiment, a few emerging factors seem to be quite encouraging for YFI and its bullish exploits. For starters, earlier in the week, it was announced that YFI is now being accepted as collateral on MakerDAO and token holders can deposit their YFI to open a collateralized debt position (CDP) and use it to mint DAI. The newsletter noted,
The acceptance of YFI on MakerDAOs system is an important milestone for the Yearn ecosystem as it opens up the possibility that YFI can be used to mint DAI in upcoming v2 yVaults that utilize YFI as the base asset.
This development had a very significant effect on the price of the token, propelling an 84 percent surge on the price charts. What is also interesting to note here is that along with the announcement, a dramatic dip in coin supply on exchanges for YFI was observed, a metric change that concurs with the overall bullish sentiment for YFI and implies that token holders are now confident in the price and are willing to hodl it to a great degree.
Interestingly, over the past week, as per Santiments data, YFI also recorded a growing correlation with the price of Bitcoin, with its price moving in sync with the king ...
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