DeFi “Blue Chip” YFI Stages Remarkable Bull Run (Up 240% in November)
Last Updated on 20 November 2020 by CryptoTips.eu
The growing interest of worldwide business media in all things crypto has several causes and various effects. Causes range from Covid-19 (the pandemic meant that investors looked for inflation hedges) over China (which launched its own Digital Yuan earlier this year, meaning others had to follow) and of course FOMO whilst the effects are mostly seen in newspapers and websites around the world. Bitcoin is the talk of the town once again, although this time it’s different from 2017 altogether.
The talk of the hype has been replaced by knowing global investors and billionaires who speak of a smart hedge. In between the lines, you can even understand that global bankers consider demanding regulation for coins like Ethereum and Tether as they grow too big, but that Bitcoin will probably manage to escape. Interesting reads altogether.
Another effect of the growing interest of investors is their need for diversification. Although Bitcoin’s price rise from $10k to $18k has happened without major corrections thus far, it is widely assumed that volatility will return. In order to protect against this, classic investor portfolios will therefore probably buy into multiple crypto coins. This leaves us with the question: which one?
Quick update on $YFI— Chase_NL (@Chase_NL) November 19, 2020
I closed out 60% of my long at this swing high, think it's a good place to take some profit. I'll let the rest target 30K~ area if it wants to keep running. pic.twitter.com/0ctgxpeWhf
The PayPal announcement made clear that several of the top 10 coins would be allowed for worldwide trading at this point (think of Litecoin which is rallying ever since), but as experienced crypto readers, we guess that you are looking for the next opportunity already.
One of the solutions could be found in the DeFi sector and more precisely in one of the so-called Blue chips (Blue Chips stand for safer investments and were a term introduced in the 1980s). In the DeFi sector, the Blue Chips are, according to cryptosphere commentators, considered to be YFI, SNX, AAVE and UNI.
Even though the recent highs last experienced are still a tad off for Andre Cronje’s Yearn Finance (at 5 months old, still a new crypto coin), interest from investors has renewed ever since the developers group released a manifesto that made clear that the development group wanted to create a truly decentralized system.
Whereas at the time of our last article Yearn Finance had just flippened the Bitcoin price, it has since gathered steam and aims for $30k again.
End of August Binance launched their own DEFI Composite Index which allows you to see and invest the top DeFi coins. This month only, the index has seen a gain of almost 100%.
Is a DeFi resurgence in the cards before Christmas? Let us know what you think in the comments below.