To an outsider, the current situation of the crypto market might seem strange. Well, for the first time in a long time the eyes of most users are not on the price of Bitcoin, despite its latest developments. It’s the decentralized finance sector (DeFi), which has experienced its biggest boom in the last three months. This leads crypto analyst Scott Melker to suggest in today’s Tweet that a rally is coming in the price of Ethereum.
YFI triples Bitcoin in value
The next Ethereum rally
For many a blessing, for others a tragedy, the rise of decentralized finance continues. In the last three months, the DeFi projects of the crypto world, with Chainlink at the forefront, have increased in value exponentially. Yearn.finance (YFI) is the most striking case of all, since in just 20 days it has gone from a price of 6,273 dollars to the 33,159 dollars it currently quotes.
This spectacular increase in the value of YFI has had unexpected consequences in the crypto market. Especially in Ethereum, the main Blockchain for the creation of smart contracts at present. And therefore, one of the pillars of decentralized finance.
Because, by allowing yearn.finance its users to perform Ethereum staking within their block chain. This means that users can store their ETHs in a smart contract within YFI and make a profit from it. YFI has substantially increased the demand for Ethereum, now that more people want to have ETH to take advantage of this opportunity in yearn.finance.
„$ETH should continue to rise. $YFI (Yearn Finance) allows investors to stagger their Ethereum into vaults and earn returns. The more people do this, the more the supply of Ethereum will be reduced and the more demand will be created. This is extremely simple.
So, if Scott Melker’s analysis is right, we could be on the verge of a new rally in the price of Ethereum. As demand for cryptomone increases due to the effects of DeFi, and the opportunities they offer for ETH users.