Yearn.Finance is rising rapidly as it aims to recover the losses experienced over the month of December. In fact, its climb was so strong, it left behind some major altcoins.
Yearn.Finance ahead of Ethereum and Solana
YFI appears to be gaining in importance as it has grown over 43.46% in the past 72 hours and continues on this path. On the contrary, the current leader in ETH altcoins was down 3.38% with SOL at -1.57%, at the time of writing.
A lot of this has to do with the recent proposal made by Yearn to change its tokenomics. Of the options given, the community mostly voted for xYFI.
This proposal suggests the creation of a YFI staking vault where excess cash income would go. In addition, Yearn began to aggressively buy back YFI on the open market in accordance with the buyback program.
At the time of this report, Yearn had purchased over 282.4 YFI at the average price of $26.6k which brings the total value to $7.5 million With over $5.5 billion in TVL, popular analyst Adam Cochran even described YFI as his top pick for next year and said that 2022 is going to be YFI’s year.
And he may not be the only one in this case. The last month has seen a significant increase in the number of addresses with a balance on the network. Although the broader market affected the price movement of altcoin, it was unable to sustain it for long.
Average balance had been receding for the last 30 days but the same jumped by $4k in the last 24 hours and now remains at $20.5k.
This uptrend has also helped YFI see shorter closeouts that are higher than long sell-offs over 8 months, with volumes increasing 480% in the past 48 hours.
Plus the consistent rise of HODLers observed since July shows that investors themselves are becoming more serious as time passes. The rise in LTHs from 1.7% to 15% is a positive sign that could, in the future, help YFI maintain prices, during a bearish trend observed recently.
