Yearn Finance is an exciting new cryptocurrency that only launched in 2020, making it one of the youngest in the sector as we head into 2022. Although Yearn Finance is a newcomer to the crypto market it has made a huge splash with its entry into the trading arena. Yearn Finance was only released in July 2020 but by the following month, the price of Yearn Finance had skyrocketed.
Now that the era of decentralized finance (Defi) has begun and trust in central banks is reducing, new coins are pulling large investments. When a new coin hits the market there is a race to assess whether the crypto coin is worth investing in. Yearn Finance has been making the portfolios of many investors, having risen to $40,000 in August 2020, only one month after release.
Like many of the popular cryptocurrencies that are being circulated, Yearn Finance is decentralised. The Defi sector has expanded rapidly over the last decade and Yearn Finance has joined in, facilitating cryptocurrency exchanges and other peer-to-peer transactions.
However, while the token of Yearn Finance is YFI, a decentralised crypto coin, the protocol mainly exchanges the more centralised stable coins. Yearn Finance is sometimes known as yEarn in the Defi sector and boosts cryptocurrency investment profits by making trades between Defi protocols.
The stable coin angle is an interesting one, as Yearn Finance deals with crypto coins which are linked to fiat currencies, commodities and assets such as gold and other precious metals. Stable coins do this to reduce the volatile trading patterns of the decentralized cryptocurrency, but they sacrifice their decentralization.
YFI has maintained its decentralized protocol as a crypto coin. This means that the Yearn Finance system profits from the stablecoin arena but can still provide support and a platform for its native coin YFI. This allows Yearn Finance to be a player in both the Defi and stablecoin sectors, giving wider scope for scalability and expansion.
These are some of the reasons why investors are interested in Yearn Finance as we move forward into 2022. There are lots of areas to consider if you are wanting to add YFI to your portfolio in 2022 to profit from this new high-value crypto coin.
Why Yearn Finance is Different
Yearn Finance has taken a simplified approach to its protocol and platform. Founder Andre Cronje is looking to release control of the protocol, which would allow greater decentralization by moving away from a central organisational core.
The platform is designed to focus on the basic concept of liquidity, where those who provide liquidity to the system are rewarded with YFI tokens. This one simple method of receiving YFI is used rather than the mining coins or the pre-mined mass release strategies sometimes used elsewhere in the crypto market. The company has declined to do any such mass sales to try to force initial profit from the coin’s release and have committed to this straightforward alternative process.
The only initial way of earning YFI tokens is by providing liquidity on the system and then staking the tokens on their contract system. This simplicity may be why the price of YFI has increased so quickly and why it has been getting so much interest from investors.
Read Also: Could Yearn.Finance be a Millionaire-Maker Coin?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Projections For Yearn Finance
Yearn Finance is not pushing a particular agenda, which many of the larger coins do; claiming to be revolutionaries of the global Defi take over. Despite this, it is still expanding and moving forward and creating scalable potential.
The areas which are being expanded into currently are designed to pair Yearn Finance, or yEarn, with other financial areas. There are several of these added features in the testnet phase currently.
Stable coin trades which are leveraged will come under ytrade and small scale smart contract loans will be covered by iborrow. There will also be yliquidate to provide automated services for those providing liquidity.
These expansions are demonstrating a lot of promise around Yearn Finance which should support the protocol’s continued success going forward.
Yearn Finance’s Major Merges
Across the cryptocurrency market forks are constantly occurring, when one cryptocurrency is split into offshoot coins or protocols. However, there are also frequent mergers occurring as platforms join to provide better, more concentrated services and to create more stable cryptocurrencies.
Yearn Finance has been involved with both forks and mergers. And it has already merged with Pickle Finance, which was initially created as a fork of Yearn Finance’s early system. This has expanded the platforms lending potential and stablecoin trading facilities, benefiting users and investors alike.
The merge has been projected to have a significant impact on the Yearn Finance system’s rates of profitability moving forward, which is a key factor for both new and existing investors.
Pickle has also suffered security breaches and it is thought that the merger will benefit their security going forward, which is a large concern for all cryptocurrency users.
Yearn Finance is spreading into other areas of the Defi industry to encourage greater stability. In the November after their launch, Yearn Finance made plans to absorb Cover; the Defi loss insurance provider as well as the Akropolis Protocol and the SushiSwap cryptocurrency exchange.
By making these expansions, Yearn Finance is securing its place in the Defi industry and increasing the platform’s ability to continue to support the YFI coin. This is good news for Yearn Finance users, but also YFI investors who rely on the Yearn Finance platform for their YFI transactions.
Check Out: Is Yearn Finance A Good Investment And Should I Invest in YFI?
Trading YFI To USD
After getting off to an impressive start after its mid-2020 launch, YFI had managed to outperform many more longstanding crypto coins. There were initial worries that the early rise to $40,000 would be short-lived for YFI, however, the crypto coin has performed well. YFI has been robust against the market in its initial year and has proved itself a high-value altcoin.
During the 2021 crypto surge, YFI outperformed expectations. The young cryptocurrency has hit a massive all-time high of $95,000, making it one of the highest value crypto coins on the market. Despite the sharp correction during the end of May 2021, YFI has persisted in being a high-value coin. The shift with followed the market-wide bull run of early 2021 saw a steady decline in the YFI price. However, this was promisingly gentle compared to some of the harsh drops seen in the crypto market at the time.
YFI sustained a promising coin value, despite the bearish downturn across the market. Other than the occasional dip, YFI remained above the $30,000 mark during the difficult trading conditions during June and July 2021. The recovery has been promising as an upward trajectory has already been seen throughout August 2021.
Although YFI has a long way to go to recover the highs seen in the second quarter, the recent incline is positive going forward. The return to $40,000 was an important step for YFI as the coin moves away from the downturn previously seen and sets out on a trajectory of recovery.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Will Yearn Finance Rebound From The Last Correction?
The correction following the May peak was substantial and has resulted in a large step down in coin price. After being knocked down to $32,000 investors have voiced concerns about the rates of recovery moving into 2022. This was not helped by the bearish climate which had spread across the crypto market during the summer of 2021.
The $10,000 recovery over August 2021 has reassured investors that the movement back towards the $95,000 high point is underway. The $10,000 per month increase is not guaranteed as sideways trading is likely to take hold for periods during 2022.
However, now that an upward trend has been reestablished, the opportunity for substantial surges to move the YFI price upward in quick steps has been reopened. This leaves YFI in a positive position moving forward, particularly for new investors. Those who have invested during the later stages of the previous surge are likely to have to wait out 2022 to see profits.
Predictions For Yearn Finance In 2022 And The Future
As per our Yearn Finance price prediction 2022, the coin might be able to touch the $100,000 price mark on the upside, while on the downside, it might fall up to $65,500. As per our YFI price prediction & forecast update, the currency price might trade around $95,000 by the end of 2022.
Experts are highlighting YFI as a positive investment, both in the next year and longer-term. Analysts are predicting at least a 260% increase in investments made in 2021 by 2024. These are given the recent downturn, which makes long term predictions more uncertain while the new trading pattern is still emerging.
However, experts are predicting a definitive increase over the next two years, although the speed of the increase is up for debate. There are indications that the $50,000 mark will be hit by the first quarter of 2022, which should set YFI up for a positive trading cycle during the rest of that year.
Although the cycles will be subject to the volatile cryptocurrency market, price predictions are stating that between 2022 and the beginning of 2024 $100,000 is the projected coin price. This would be a substantial return on investments made at the current price of $35,792 at the time of writing.
There is an expected dip between 2023 and 2024 during which analysts are not expecting yearn Finance YFI to make great headway past $100,000 as it may drop to $80,000 for some time. However, the following recovery is expected to take YFI to around $115,000 by the end of 2025.
These predictions are supporting Yearn Finance as a good investment for 2022 as a long term and short term investment. For shorter-term investments, more attention should be paid to the volatile daily trading cycles as these can greatly affect the amount of fiat currency received during exchange.
Don't Miss: Yearn Finance Price Predictions
Yearn Finance Trading Forecast for 2022
The outlook is good for Yearn Finance in 2022 as those who invest while the price is at a substantial drop from peak position stand to profit from the post-correction period. Now that the downward trajectory has corrected itself, following the bearish trading cycles seen in June and July, the outlook and predictions are greatly improved.
This is also boosted by Yearn Finance’s recent expansion and system improvements. Their latest announcement outlines the current milestones:
‘In this week's Yearn newsletter
- YIP-63: Fund Builder-First Legal Activism DAO Passed
- Alchemix Migrates to Yearn v2
- YFI Added To Compound Finance
- Swap Between Yearn Vaults In One Transaction’
@iearnfinance, Twitter account of Yearn Finance
These system additions and new YFI trading options should boost coin prices as well as accessibility for investors.
Some analysts have voiced concerns that the downturn would continue throughout the final quarter of 2021 into 2022, however, this now seems unlikely. Experts feel that the YFI trading patterns are on a sustained upwards trend, which is more prone to sideways trading than substantial drops.
This is outside of large serges, which are followed by characteristic corrections, but the overall momentum is pushing the YFI price up as we move into 2022. Those who invest in this early stage of the upswing are most likely to see substantial returns before the end of 2021 and into the first quarter of the next year.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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FAQs
Who is behind Yearn Finance?
Yearn Finance was set up by Andre Cronje, a software developer and supporter of decentralized finance. He is a self-termed decentralized financial architect and current head of the Yearn Finance enterprise.
What is Yearn Finance?
Yearn Finance is a platform for completing smart contract transactions to trade and purchase stable coins and fiat currencies. They also facilitate profit switching to earn rewards for lending providers.
The native coin which fuels the system is YFI which is a cryptocurrency that can be used on the Yearn Finance platform as well as being acquired as an investment unit. Users can also generate profit by swapping between different crypto coins on the Yearn Finance platform.
How does Yearn Finance compare to the market?
Yearn Finance is an underdog of the cryptocurrency market as it only ranks at number 92 in terms of market capitalization currently due to its market cap of just under $1.3B. However, despite this smaller market cap, the YFI cryptocurrency is performing extremely well in terms of coin value.
The current coin price is sitting around the $40,000 mark at the time of writing and despite being down from its all-time high of $95,00 it is the fourth highest in value. This puts YFI in a value bracket that is only exceeded by Bitcoin and some of the Bitcoin offshoot currencies.
This is extremely good news for those looking to focus on trading with USD, rather than high percentage returns on cheap altcoins.
Should I invest in Yearn Finance in 2022?
Yearn finance is a good investment in 2022, and possibly an even better investment for those who buy in during the last quarter of 2021. This is due to the current price drop and the early stage of recovery.
The predictions are signalling that the YFI price will continue to recover as it pushes back up towards the brief $95,000 high. Despite the drop YFI has managed to achieve an 82% increase in price this year, even despite the market-wide slump throughout May, June and July 2021.
Is Yearn Finance still going to go up?
Despite the high coin value, Yearn Finance is expected to rise. Although the day to day trading cycles are extremely volatile and create positive and negative moments, the overall trajectory is upward for YFI.
The next six months are expected to be a period of recovery for Yearn Finance where the value climbs again following the harsh correction seen in May 2021.
What will YFI prices rise to in 2022?
The Yearn Finance YFI price is expected to rise from the current value. It is unclear if YFI will exceed the previous highs to hit the $100,000 mark, but it is expected to start off the year near at around $50,000.
If a pattern of surges emerges in the first and second quarters then it is possible for Yearn Finance YFI to exceed $100,000. However, the more conservative estimates are expecting to end the year between $60,000 and $80,000.
Some experts are currently placing the higher estimates for Yearn Finance at $109,000 to $120,000 by the final quarter of 2022 and moving into 2023.