Yearn Finance (YFI) was released only a month ago and since then The locked down value of the platform was $ 611 million.
In the past three days The YFI price rose to $ 12,800This is an increase of nearly 330% since the price bottomed at $ 3,005 on August 13.
Three key factors appear to be behind YFI’s recent rally: the publication of yinsure.finance, the public relations work driven by industry executives, and the continued explosive growth of the decentralized financial sector.
YFI / USDT 4 hour chart. Source: TradingView.com
Start of Yinsure.finance
On August 17th, the Yearn Finance development team announced the launch of a tokenized insurance platform called yinsure.finance. Through insured safes and claims management, Create an Insurance Service for the DeFi Protocol. The developers said:
“In the coming weeks we will systematically launch yinsure.finance, a prototype of a new type of token insurance. This contribution is a draft that describes the architecture and the creation of a decentralized insurance mechanism.”
Venture capital investors suggested earlier this month that insurance could become the next big category in the DeFi space.
Fred honestly, the co-founder of the crypto fund paradigmsaid chain insurance for Covering protocols and DAOs has the potential to become a large market. Honestly said:
“Cryptocurrency insurance – on-chain insurance for protocols and DAOs – has the potential to be the next big financial premiere in DeFi. The market size could be huge and the initial wedge is believable … who solves it, can. Create one.” the building blocks of DeFi, supporting today’s billion dollar value and unlocking wider usage by increasing the amount of capital users, investors and traders are willing to invest in the system. “
Yearn Finance’s entry into a relatively new chain insurance market seems to have a positive influence on the mood around YFI.
Industry executives are excited about YFI
The price of YFI fell significantly when Yam, an experimental DeFi protocol, was attacked by a bug. Since then, YFI has recovered quickly, Gaining popularity among prominent industry executives.
Recently the CEO of BitMEX, Arthur Hayeshas investigated various DeFi protocols such as Yam and Based and There are tweeted with enthusiasm::
“Me and my metamask are busy this morning. Longing, damn it. Come on, YFI to the damn moon!”
The growth of the DeFi sector is accelerating
The total value of the entire DeFi ecosystem exceeded $ 6.4 trillion on August 17th and Manufacturer, Aave and Curve financing Exceeded over 1 billion in total blocked value.
As already mentioned, The general expansion of the DeFi market has resulted in the total value set in Yearn Finance reaching $ 600 millions. The large amount of capital reserved on the Yearn Finance platform has been a great catalyst for YFI.
The coincidence of a new product launch, the expansion of the DeFi market, and the rapid growth of Yearn Finance’s user base seem to be raising the price of YFI.