What’s Going on With YFI Price !!
The past week had been very volatile for the whole crypto space as Bitcoin was on its way to touch $14000. It seems that the other cryptos and DeFi tokens have scrambled but some DeFi tokens like YFI Price are on the verge to touch the rock bottom price.
At this downtrend, is it good to ‘buy at dip’?
Well, it’s really very immature if we consider only its previous bull rally to predict the upcoming trend. But yes, many reports round the market point out a strong bearish trend for the token which could pull back to visit below $7000.
At present, it is important to sit calm and witness the YFI Price swing in the coming days. In fact, the forks YFII and YFL are also following the same trend. Moreover, the new invention of Andre Cronje, KP3R also declined significantly.
Today, at the press time, YFI price stands at $8761.79 with a huge dip of 9.46 percent. Considering KP3R token, the price is $132.12 with a scary and heavy plunge of 37.59 percent.
What and Where It Went Wrong?
It’s not just a couple of months have passed, YFI had touched its peak above $40,000 and now below $9000 levels. Nearly 75 percent straight decline which is historical. The scammy tokens or the dummy projects just get scrapped within no time, but YFI did not do so.
However, the current steep pullback which has hounded many have accumulated reasons. Some of them are listed below,
Bitcoin’s growing dominance
In a recent couple of weeks, Bitcoin has regained its momentum. With getting rejected multiple times at $10,000 and $12000, the Bitcoin price successfully soared to touch $14000.
Moreover, BTC dominance has touched above 64 percent compared to the other cryptos in the market. Hence, the market sentiments were very much active in only Bitcoin trading.
Whales departed with their profits
As we all know, YFI is a governance token and was rewarded to its platform users. Hence the users who purchased initially held a large amount of YFI tokens as the YFI price was below $100.
But when the price surged, these holders turned into whales and the probably they might have let-off their holdings after gaining enormous profits.
Lack of Leadership
Soon after the token started gaining the momentum, Andre Cronje, the brain behind yearn finance, surrendered his hold on the token. He transferred all the rights to the people on the platform.
Therefore, the lack of leadership might have been one of the main reasons that the YFI token is slowly losing out the grip.
Collectively, many analysts have predicted, November month to be very bloody for YFI and also hope for a strong comeback. It would happen with a strong and any positive movement within the market.