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Yearn.finance (YFI) has been one of the hardest hit crypto assets in recent weeks and months. From its all-time high of $ 44,000, the coin has dropped to $ 14,000 at the time of this writing. Coin remains a major DeFi asset, touting a market cap of just under $ 500 million.
Some fear that the asset could decline further after an early adopter of the protocol sent a large sum of YFI to exchanges. It is unclear what this individual will do with these funds, although some assume they will be sold for stablecoin or another cryptocurrency such as Ethereum or Bitcoin.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near Bottom
Yearn.finance Farmer sends large sums to exchanges
Such as noticed from crypto analyst “Hsaka”, a pseudonymous individual who has grown the most YFIs has just sent 100 coins, worth approximately $ 1,400,000, from their wallets to Binance.
Some think that this unnamed individual may proceed to dump YFI on the market, causing the asset to slide more than it already has.
Of note, this is not the first time this individual has done this: another address linked to the main address systematically collected has then sent hundreds of YFIs over the past two or three months to Binance.
From the largest $ YFI farmer 👀
Psyops or dump in prod? https://t.co/qMLem0XEg8
– Hsaka (@HsakaTrades) October 26, 2020
However, coins can also be sent to exchanges for other purposes. For one, when contracted from an exchange, a user with a large sum of a single currency can make a market, allowing the users of the exchange to trade in and out of the asset with minimal slippage.
Related reading: Tyler Winklevoss: A “tsunami” of capital is coming for Bitcoin
Technicians returning to the track
Despite the potential drop in YFI following the sell off of 100 coins, altcoin technicians are getting back on track. A cryptocurrency analyst shared the chart below, showing that the native currency Yearn.finance should shoot tens of percent more if it manages to breach a notable resistance:
“Break the top of this immediate resistance and we could easily see him stretch his wings again.”
Image Courtesy of Cold Blooded Shiller. Source: YFIUSD on TradingView.
There are other trends indicating that the coin is expected to move higher with the technical and fundamental alignment.
Related reading: 3 Bitcoin chain trends show a macro bull market is in turmoil
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Top Yearn.finance (YFI) Farmer Sends $1,400,000 Worth of the Coin to Binance
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