Yearn Finance (YFI) emerged as one of the best in the cryptocurrency market this week, rising more than 46% in just four days to reach a two -week maximum of USD 29,100.
Profits will surge mainly during Yearn Finance revealed has been buying YFI en masse since November in response to a community vote to improve the economy of the YFI token. The decentralized assets management platform bought 282.40 YFI at an average price of USD 26,651 per token, a total of more than USD 7.50 million.
In addition, Yearn Finance reported that it has more than USD 45 million in its Treasury and has “stronger profits than ever”. As a result, you could, in the future, display your entries to redeem more YFI tokens.
Now that the Treasury has more than $ 45 million saved up and with earnings stronger than ever, expect much more aggressive buybacks. What will you do anon?
– yearn.finance (@iearnfinance) December 16, 2021
Now that the Treasury has more than USD 45 million lost and with stronger profits than ever, expect to buy much more aggressively. What are you going to do now?
Adam Cochran, partner of activist risk fund Cinneamhain Ventures, signaled that Yearn Finance earns around USD 100 million per year in rates collected by Vaults alone, its smart windfall accounting service that maximizes the accumulation of value of digital assets deposited.
The analyst pointed out that Yearn had gained more than USD 5 million in total blocked value (TVL) against a market capitalization of USD 781 million. I said this, the Yearn Finance protocol offers one of the highest rates for TVL, which gives it enough liquid to maintain its strategy of buying tokens in the future.
Cochran compared Yearn Finance’s profit-sales (P/S) and profit-earnings (P/E) relationship with another “payments-based” protocol curve, noting that YFI remained inflated in comparison to the staking token of Curve, CRV.
Specifically, the P/S relationship indicates how much is available to pay investors for the actions of a company in connection with its sales by action. The P/E relationship represents the decision of the investors to buy an action as a result of the past or future profits of the company. In both cases, a lower reading indicates an invasive action.
“Its P/S relationship is 3.6xy its P/E is 7.9x”, Cochran wrote on Yearn Finance, and added:
“Those numbers for other payment -based protocols like Curve are 71.9xy 143x, respectively. So, sometimes the multiple values are repeated for someone who has rates.”
I’m stupidly long on Yearn both in terms of my capital but also investing my time as I expect to spend a lot of time building here.
– Adam Cochran (@adamscochran) December 16, 2021
Will YFI reach USD 40,000 after that?
While Yearn Finance’s decision to raise more than USD 7.50 million in YFI helped drive up its prices, cryptomoneda has also received an additional boost to the rise of a historical accumulation rate.
The area between USD 18,500 and USD 20,000 has left buyers in each YFI price drop since November 2020. It is also facing taxpayers in September 2020, which has led to a price rebate of up to USD 40,000.
If YFI maintains the range of USD 18,500 to USD 20,000 as support, and rises above USD 24,580, the 0.786 Fib line of the Fibonacci retrace chart in the previous chart, its next target to rise will be USD 40,000 , a level that coincides with the line of 0.618 Fib.
The popular Cuban cryptocurrency trader he signaled that the completely diluted valuation (FDV) of YFI is below USD 1 million, which is “criminal considering the potential and the team behind”. Added:
“As for macro cryptocurrencies, I think we’re basically having a great first quarter and a lot of people will be left on the margins after eliminating the EOY risk.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and commercial movement involves a risk, you must conduct your own research to make a decision.
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