Huge Chunk of Addresses Are In Loss
According to the latest charts by crypto intelligence platform, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) at the current price level of $11,465, 86.6% of the addresses with a balance in YFI are out of the money. This essentially meant that the holders are at a loss and 86.6% holders would make a loss if they were to sell the position today.
It is important to note that YFI was initially worth at $0 at the time of launch. However, within 24 hours of its launch, the token set its peak at $45,000 on he 12th of September. One and a half month later, the token was down by over 74% to its press time price. The bulls run was easier to explain. It was mid Q3 that the DeFi hysteria was at its peak and investor capital came rushing in. As the hype died down, the token’s price climbed down to much more reasonable range.
Why the Steep Correction?
But for the massive downfall of YFI token, there are various factors at play here. One of themost prominent driver was the fact that less value was being captured by the YFI token due to decreased yields on Curve. Jason Choi, Research Manager of Spartan Capital, had earlier explained that Yearn Finance was dependent on the stablecoin pool on the Curve platform. Hence, Yearn Finance keeping the vast majority of the capital in the yCRV vault seriously undermined the upward trend of YFI.
Additionally, there has been steady decline in the popularity of yield farming protocols of late, due to scams, excessive hype, and market manipulation appeared to have stunted its expansion.
Not to forget, that the controversy of Eminence Finance, which was an unreleased project being built by Yearn’s Andre Cronje that drained of $15 million. The damage that was done by this news has so far failed to fade.
The post Over 86% of Yearn Finance’s YFI Addresses Are Currently In Loss appeared first on Coingape.