Yearn.finance (YFI) has begun to outperform despite weakness in small-cap altcoins. The leading cryptocurrency has rocketed higher 25% from the daily lows of $7,500 and now trades for $9,500 per coin. In the past 24 hours, YFI has gained 12.5%, outperforming a majority of the crypto-assets in the top 100 by market capitalization.
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Yearn.finance (YFI) Explodes Higher
YFI’s ongoing move higher seems to be predicated on a short squeeze, on-chain data shows.
Crypto-asset analysts have noted that an on-chain YFI short holder, who obtained his position through Aave, has begun to buy back YFI to avoid liquidation. At the lows, his position was worth over $2.4 million, equivalent to around 300 coins at the time.
A short squeeze is likely taking place on centralized exchanges that support the Yearn.finance coin. YFI rallying 25% in the span of three hours was likely an unpleasant move for those that were actively trying to drag the price of the coin lower.
Chart of YFI's price action over the past day from TradingView.com (YFIUSD).
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The Y-Token Rally
The rally in the value of Yearn.finance (YFI) has spread to other Y-tokens—copycats of the coin launched to try and capture some of its marketing hype.
YFL, YFDAI, YFII, and a number of Y-tokens have seen rapid appreciation over the past few hours, bouncing strongly from their daily lows.
This comes in spite of bearish moves in altcoins, which are being compressed as all capital and attention get focused on Bitcoin. Analysts think this will continue as long as BTC’s price action is skewed strongly to the upside.
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Featured Image from Shutterstock Price tags: YFIUSD, YFIBTC, YFIETH Charts from TradingView.com Yearn.finance (YFI) Explodes 25% In Three Hours as Short Squeeze Begins