Yearn Finance peaked during the high of the 2021 bull run in May and fell to market corrections subsequently. The cryptocurrency also saw a brief upside move during November but where altcoins broke their ATH amidst bullish pressures in November, YFI token could not move near its ATH. It did fall prey to bearish pressures in the market as the crypto market delved into a strong sentiment of fear and panic. However, the recent price movements show that the cryptocurrency has effectively reversed its upwards trend and is gaining. At the time of writing, Yearn Finance stands at a price level of $25,920 with an upside move of more than 20% during the past twenty-four hours. The daily trading volume has also increased by more than 100%.
The buy-back program
Yearn Finance is an aggregator platform for decentralized finance. It automates the processes for crypto investors allowing them to benefit from high yields in the crypto market through yield-farming. The network aims to make investing in DeFi simple and accessible. The token is currently skyrocketing because of a buy-back program that has been launched by the network. The team revealed yesterday that they have purchased $7,526,343 worth of YFI – totaling to 282.4 tokens and 0.77% of the total supply. The network furthered that the current buyback throughout the month is more than the combined buyback of the previous year. This aggressive buy-back strategy has fueled the momentum for Yearn Finance and as supply become restricted in the market, the demand will automatically rise; hence, increasing the price of the token.
Moreover, the aggressive buy-back strategy is expected to become even more aggressive as hinted by the team. Yearn Finance also tweeted that the treasury is stronger than ever with more than $45 million in savings – a major chunk of which is expected to be utilized on buyback. The network is also working on a number of initiatives including a revised tokenomics for the cryptocurrency.
Yearn Finance – future outlook
The buyback is expected to continue propelling Yearn Finance upwards, especially if the strategy is continued with the current aggressive stance. The network also has strong fundamentals which will aid the uptrend. According to the estimates of Digital Coin Price, the cryptocurrency is expected to be operating at a price level of $40,636 by the end of the current year while the five-year projection places it at a staggeringly high price of $96,040.
