Yearn Finance Rolls Out Ethereum Staking: Could this be Bullish for ETH?
YFI, the native token of DeFi protocol Yearn Finance, has seen explosive growth since its launch.
The token has so far surged by 8900%, taking its value from just under $1000 a couple of months ago to form local highs of nearly $40K this past weekend.
This parabolic momentum, which saw YFI surpass BTC in terms of value, is mostly attributable to a massive influx of various digital assets into the protocol's multiple staking pools.
The total value locked (TVL) within Yearn Finance is approaching $1 billion, confirming the platform as one of the largest DeFi protocols.
The prospects of earning high returns from Yearn's yield farming services have contributed to the platform's growth, which is attracting massive inflows of capital.
At the time of writing this article, YFIUSDT is trading at $38, 694, marking a slight correction from a local top formed just above $39K in yesterday's sessions.
The ongoing YFI price uptick has impressed crypto analyst and CEO of Bitmex Arthur Hayes, who tweeted that the token looks set to climb as high as $100K.Yearn Finance Rolls Out ETH Staking
On August 31, Yearn Finance rolled out ETH vault that allows users to stake their ETH holdings to earn high returns via its new product yETH. The vault went live a few hours ago after a community vote.
The new product will likely attract a vast amount of ETH tokens from the market, creating a higher demand for the second largest crypto.
Explaining how the yETH product could impact liquidity in ETH markets, one trader tweeted:
"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."
Alex Saunders, the founder of Nugget news, reiterated that the yETH vault is bullish for ETH. He noted that the movement of ETH into Yearn Finance pools would likely cause a supply-side liquidity deficit in the ETH market.
Simultaneously, increasing demand for ETH tokens for use across growing DeFi, and stablecoin platforms will push the ETH price higher.ETH Price Breaks Above Stubborn Resistance
Meanwhile, ETH has gained bullish momentum above the $406 resistance. The top altcoin has reached highs of $435.2 at press time, with bulls seemingly aiming to test $445.
Given that the ETH vault went live on the Yearn Finance protocol earlier today, there is a high probability of a bullish breakout in the ETH price.
That said, many traders are waiting for a clear break of the $445 resistance barrier before confirming a bullish pattern for the ETHUSD pair.
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