DeFi Token YFI Spikes 76% As BTC, ETH Makes Double-Digit Profits

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YFI surges over 76% as BTC, and ETH makes double digit gains.
As crypto has gone mega-bullish, the perpetual swaps are nearing zero still.

Decentralized Finance (DeFi) token Yearn.Finance (YFI) surges over 76% as Bitcoin (BTC), and Ethereum (ETH) makes double-digit gains.

Yearn.finance is an aggregator service for DeFi investors, utilizing automation to allow them to increase profits from yield farming. According to CoinGecko, the YFI price is at $44,369, at the time of writing.

Moreover, so far in 2021 both Uniswap and Yearn have made triple-digit percentage profits. However, the volatility in the market has sapped some of their returns. For example, in early May, Uniswap up more than 700% before a precipitous fall.

CEO of investment firm Ether Capital Brian Mosoff said,

“DeFi tokens, like most altcoins, are lower market capitalized, possess lower liquidity and thus have higher volatility…with these types of assets being hit harder than blue-chip crypto, such as bitcoin and ether. But as things seem to be rebounding the lower liquidity leads to a faster bid up on price.”

According to CoinMarketCap, Bitcoin, the world’s largest crypto by market cap, is trading around $37,220.42. Added to this, Ethereum, the second-largest crypto by market cap trades around $2,445, at the time of writing.

BTC Perpetual Swaps Funding (Source: Skew)

Further, as crypto has gone mega-bullish, the funding rates to leverage up in the Bitcoin market, known as perpetual swaps, are nearing zero still. However, this shows that the recent spot market pop is not the result of traders borrowing crypto to leverage up long till now.

Source: https://coinquora.com/defi-token-yfi-spikes-76-as-btc-eth-makes-double-digit-profits/

Time Stamp: May 25, 2021