Yearn Finance (YFI) Price Ripe for Another Bullish Breakout
The Yearn Finance price drifted upwards after the developers announced major changes to the platform. YFI, its token, was trading at $5,800, which was a few points below this week’s high of $5,975. The token has jumped by over 20% from its lowest point in December. Similarly, Curve DAO’s CRV token has soared to the highest point since December 12.
Yearn Finance news
The YFI crypto price jumped sharply after the developers announced changes to how the network will work going forward. Their goal is to open up the network to more users as they work towards full decentralization. As part of this transition, all users will be able to create their own vaults, which they can use to attract capital and earn yields.
In the past, Yearn Finance’s yield farmers were limited to about 27 vaults that were created by its developers and partners. With the new system, Yearn will charge vault creators a 10% fee for their vaults. These fees will then be distributed to Yearn DAO members. Presently, most of these funds will go to the company.
Total assets falling
The announcement came at a time when Yearn Finance has seen its level of activity plunge. In the past few years, the total value locked (TVL) in Yearn has crashed from over $6 billion to less than $400 million. This decline happened as divisions among the community intensified. These divisions led to the creation of DFI.Money, a DeFi-farming aggregator.
Therefore, the developers hope that the Permissionless Vault Factory will bring in more users to the network. They also believe that the 10% fee will help to boost its finances in 2023 and going forward. Initially, users will be able to make vaults for liquidity provide tokens of Curve Finance. Curve is a leading DeFi platform that makes over $100k in revenue every day.
Yearn Finance price forecast
The four-hour chart shows that the YFI price has done well in the past few days. As it rose, the token moved above the 25-day and 50-day moving averages. It also moved slightly below the 38.2% Fibonacci Retracement level. It is also slightly below the important resistance point at $5,975, the highest point this week. The token also rose slightly above the crypto-optimized Ichimoku cloud.
Therefore, Yearn Finance price will likely continue rising as buyers target the next key resistance point at $6,200. A drop below the support at $5,655 will invalidate the bullish view.