Yearn.finance’s native token, YFI, is expected to outperform by 2021 due to fundamental and technical trends.
A leading crypto asset analyst recently announced that YFI’s recent price action looks very similar to Ethereum’s prior to the cryptocurrency’s big bull run in 2017. This fractal comparison suggests that Yearn.finance’s native token will see an extreme surge in the coming year.
There are also fundamental trends that are supposed to increase the cryptocurrency. Namely, Yearn developers will release an upgrade to a core product, while project founder Andre Cronje has pioneered partnerships with other top DeFi protocols.
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YFI is set to outperform in 2021, Key Fractal shows
According to a crypto trader, YFI’s recent price movement appears to be very similar to Ethereum’s in late 2016. Both charts have similar technical formations as well as similar fundamental theses:
“Get the feeling that $ YFI will pull a $ ETH in late 2016 and build insane pressure in the shape of an ascending triangle and get into pricing in late December to early January while the real bull run in 2021 (2017 for ETH). “
Should the Yearn.finance token follow the path taken by ETH, YFI will do an excellent job in 2021.
Chart of ETH's macro price chart from mid-2016 to mid-2017 with analysis by crypto trader Crypto HornHairs (@CryptoHornHairs on Twitter). Source: ETHUSD from TradingView.com
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Basics Extremely bullish
Yearn.finance fundamentals are bullish and improve YFI’s outlook.
Developers are currently in the process of introducing Yearn.finance’s v2 safes. Safes are the main product of the protocol, which allows users to get a regular and relatively safe return on their deposits of assets like stablecoins and Ethereum.
According to As a Yearn developer’s suggestion, the v2 vaults contain the following improvements:
- Allow a vault to have multiple strategies at the same time
- Streamline the development cycle of new strategies using a standard API
- Streamline the vault QA / security process to ensure the highest quality code
- Make sure the vaults are tested to handle different types of risk / return / volatility thresholds of the strategy
- Make it easier and safer for integrators to use vaults in their projects
Many expect that the introduction of this new Yearn product will accelerate YFI’s growth as it should bring more capital to Yearn and increase dividends paid to YFI holders.
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Featured Image from Shutterstock Price tags: YFIUSD, YFIETH, YFIBTC Charts from TradingView.com Ethereum Fractal Predicts Yearn.finance (YFI) Will Have a Big 2021