The YFII price has rebounded sharply in the past few days as investors buy the coin’s dip. The token is trading at $1,674, which is about 400% above the lowest level during the weekend. This price is still about 85% below its highest point on record. According to CoinGecko, DFI has a market cap of over $42 million.
What is DFI.money and why is it rising?
DFI is a blockchain project that is in the Decentralized Finance (DeFi) space. It is a leading platform that simply allows people to deposit their funds and then they can earn interest. It is a fork of Yearn Finance, one of the biggest blockchains in the world.
The concept behind DFI.Money is that it aggregates various protocols like Compound, dYdx, Aave, and DDEX protocols and finds the one with the highest interest. Therefore, as an investor, you will simply add funds to the network, and then it will farm around and find the one with the highest yield.
After finding that asset, it then returns a proof-of-stake known as yToken, which users can send back at any time and withdraw their tokens and interest. YFII is the governance token for the DFI network.
Like other DeFi tokens, DFI.money has had a difficult period in the past few months as investors worry about the state of the industry. As a result, the total value locked in the industry has fallen from more than $250 billion to less than $75 billion. According to DeFi Llama, DFI has a total value locked of less than $100k, making it a relatively tiny platform.
It is unclear why the YFII price is surging. Since there is no new news about the coin, there is a possibility that investors are pumping the coin.
YFII price prediction
The four-hour chart shows that the YFII price went parabolic on Friday. As it rose, the coin managed to move above the important resistance level at $1,470, which was the highest point on May 14th. It has moved above all moving averages while the Relative Strength Index (RSI) has jumped to the overbought level.
Therefore, in my view, I believe that the coin will retreat soon. If this happens, the next key support level to watch is at $660, which was the highest point on June 16th.
This post first appeared on: Coinjournal