The Bitcoin course holds the limit of the 1 trillion market capitalization, while future investments of at least one company become more likely. The Ethereum course is meanwhile benefiting from DeFi growth and the prospects for summer 2021. Yearn Finance, on the other hand, lets go of the dogs and shoots USD 100,000 thanks to WOOFY.
What a wild time we can experience when we keep an overview of the markets. A wide variety of cryptocurrencies are pumping left and right and everywhere for sometimes more and sometimes less understandable reasons, while Bitcoin (BTC) continues to run in a price range between approx. 53,475 and 58,352 USD.
At the same time, Ethereum is benefiting greatly from the capital rotation away from BTC and towards ETH. Added to this is the growth in the DeFi sector, even with transaction fees exploding again. The prospects for “Optimism” and EIP-1559 in the summer of 2021 are also fueling the market. Yearn Finance (YFI) on the other hand lets go of WOOFY and, thanks to enough hype, flies towards the 100,000 USD.
Let’s start right away with the number 1 cryptocurrency sorted by market capitalization. Or more thematically: the only cryptocurrency with a market capitalization of more than USD 1 trillion. And a lot of the Bitcoin course currently revolves around this number. Because this magical limit can be found on the charts at around USD 53,475 and forms a critical support zone for the Bitcoin price.
The other critical zone is resistance at a former all-time high ($ 58,352). And it is precisely these two price marks that roughly mark the current (and renewed) price range at BTC. Why present and again? If we take a closer look at the above chart, we see that this price zone was basically only left for a short time.
What we see with this price range is possibly just a heavy accumulation. An accumulation that can already have around 2.8 million BTC in volume. That calls smart money on the scene. For example, the software developer Palantir, who now a) announced the acceptance of BTC as a means of payment and b) is considering a direct investment.
Now comes the acceptance of Bitcoin as a means of payment and the statement that an investment in BTC is “definitely on the table.” So no promise, but already much more substance than rumors about Facebook, Walmart, etc.
Ethereum (ETH) neither has large companies looking to invest, nor a supposed accumulation zone. But this is not absolutely necessary, as the Ethereum course has impressively shown for some time. In return, ETH has the rapidly growing DeFi sector plus summer narratives behind it. Namely the 2nd layer solution “Optimism” and the “London Hardfork”
While the Ethereum price is storming to new all-time highs and has been showing almost 500% performance since the beginning of the year, many users naturally ask themselves: “How long can this go on?” Well, for a while or not. Sometimes there are only weak signals for a possible price reversal. On the other hand, there are signals of exploding transaction costs.
Transaction fees on the Ethereum network have recently exploded from under 100 Gwei to over 300 Gwei. And these are only basic costs because the complexity of the transactions plays a major role in the calculation of the fees. Of course, this does not please the users, which on the other hand does not seem to harm the network using either. At least not yet.
Things have calmed down around Yearn Finance (YFI). Or it had become quieter, because the YFI course literally exploded on May 10, 2021, and has since performed a whopping 78%. The new all-time high is, therefore, USD 95,000, just below USD 100,000. But why is that? Well, on the one hand on strong accumulation over around 33 days, on the other hand on a strong first quarter of 2021.
The real main reason, however, is WOOFY, a new dog token from Yearn Finance with a clever design and certainly desired effects on the price of YFI. But one after another. In the first quarter of 2021, Yearn Finance had sales of just under $ 5 million. That is a 30 percent increase compared to 2020 as a whole.
Source: DeFi Pulse
Add to this a massive increase in the total amount of USD in cryptocurrencies (TVL) in Yearn Finance. And the ecosystem around YFI is not included in this. Since the beginning of the year, it has gone from approx. USD 460 million TVL to USD 4.358 billion TVL. That is tremendous growth.
The current price growth is also due to the fact that Yearn Finance is taking advantage of the hype surrounding dog tokens. WOOFY is the name of the newest asset, a token that can be swapped to and from YFI (the only “benefit”, by the way). The ratio is 1 to 1 million.
It is hardly worth mentioning that the hype surrounding DOGE, SHIB, and other dog tokens meant that WOOFY felt massive buying pressure. This in turn was reflected in the YFI price. The sustainability of the recent increase in the YFI course remains to be seen.
Apart from the increases due to various hypes, it should be noted that we continue to see the Bitcoin price in an accumulation movement. An accumulation below $ 60,000, the breakout of which could well target $ 75,000 as the first stop. The Ethereum price is meanwhile still in price discovery and will stay there until the market is too heavily overbought (overheated).
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