• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Changelly
  • Price table

Crypto News PRO

From the world all news

  • Home
  • News

Yearn Finance Launches Ethereum Vaults; Here’s Why Its Bullish for ETH

Written by:
Aeon Flux
Published on:
1 September 2020
Thoughts:
No comments yet

Yearn Finance is now allowing people to stake their Ethereum holdings to earn higher yields via its new product yETH.

The vault, which went live on Monday following a community vote, expects to attract a large amount of ETH tokens, with many observers noting that the migration would leave the Ethereum market with a supply-side liquidity shock. They are already counting on a bullish response from the ETH traders based on supply-demand economics.

Alex Saunders tweeted earlier Monday that he sees the demand for ETH tokens go high in the coming days. The Nugget News founder called the launch of yETH a “bullish” event, adding:

“Anyone who owns ETH can earn the best yield automatically by HODLing yETH. It could also mean other protocols find it harder to compete with Ethereum when offering staking rewards.”

Ethereum Boom Ahead?

In retrospect, Yearn Finance is a protocol that finds the best available yields available on the tokens one holds. It requires users to deposit their coins into their system, for which they return a native cryptocurrency. In the case of Ethereum, that token is yETH.

As traders–who are looking to put their ETH holdings to use–decide to deposit them with Yearn Finance, they would automatically remove a portion of ETH supply from the market. Meanwhile, rising demand for the Ethereum cryptocurrency for its application across payments, DeFi, and stablecoin sector, would most likely push its prices higher.

“ETH vaults typically draw in the most liquidity,” stated one analyst. “YFI has been a monster liquidity vacuum without them, imagine the addition… This will accelerate things far beyond current TVL.”

Another daytrader commented:

“The sheer amount of ETH is going to get locked up in [Yearn Finance] yETH vault. I feel [it] will be astronomical – not only bullish for $yfi but the juggernaut $eth itself. I’m long both and I’m f***** excited.”

No trader gave an exact price target following the yETH-led Ethereum boom.

ETH/USD Down

The Yearn Finance did not leave a sudden impact on spot ETH/USD markets. The pair was trading 0.43 percent lower at $426 as of 1100 GMT.

ethereum, ethusd, ethbtc, cryptocurrency, yfiethereum, ethusd, ethbtc, cryptocurrency, yfi

Ethereum price trades lower despite the Yearn Finance news. Source: TradingView.com

One chart watcher noted that traders might start moving their Bitcoin capital into the Ethereum market after the yETH launch. Meanwhile, analyst Michaël van de Poppe said that ETH/USD would remain bullish as long as the pair holds itself above the $370-mark.

So far, Ethereum has surged 226 percent in 2020 following the Federal Reserve’s trillions of dollars worth of capital injection into the US economy. The second-largest cryptocurrency is now eyeing a break above $450, which many believe would have it touch the $500-mark.

Tags: cryptocurrencyethbtcethereumethusdyfi

Categories: Bitcoin, Ethereum, News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search in the news

Translate:

Earn up to 5% every 10 days with Aeon Flux Coins

Categories

  • Bitcoin (2,396)
  • Ethereum (1,612)
  • News (4,989)

Recent Posts

  • The World is Quickly Adopting Crypto: What this Means for Your Business 1 May 2022
  • The DeFi Wars: Why transparency defines the future of finance 1 May 2022
  • Homo Economicus and the Rational Expectations Theory 1 May 2022
  • Exploring the Foundation of the Fantom Blockchain 30 April 2022
  • Interview with Oleg Kotliarov, CEO at Attarius Network 29 April 2022

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020

© 2015-2020 Crypto News PRO
All Rights Reserved. Powered by IWG Agenzia Web