Yearn Finance new v2 vaults might hold the key to kickstart YFI price rally to $90,000


  • Yearn Finance announced the launch of new v2 yVaults with relatively higher yields.
  • YFI price is trading under $40,000 after remaining lull during the recent bull run.
  • However, multiple on-chain metrics hint at a massive growth for the DeFi coin shortly.

Yearn Finance’s launch of new v2 yVaults could catalyze the sleeping DeFi giant into a bull rally.

A fresh start with V2 yVaults

Yearn Finance announced the new v2 yVaults were live and that users could migrate their holdings with a single click.

Reportedly, the newly launched vaults are more advanced and provide investors with higher returns. Four out of five top pools on Yearn Finance have already migrated to the new vaults, showing investors’ interest. 

Additionally, the stablecoin Dai was the top asset with over $106 million tokens locked in the v2 vaults. As for the governance token, $72 million worth of YFI were deposited into the new pools.

This step from Yearn Finance comes after the recent exploit on the v1 yDAI pool that cost the project $2.8 million in losses. Although the exploit was patched soon after the hack, the recent update could be a step toward making the vaults more secure to prevent future issues.

A higher yield offering will likely attract users, thereby increasing the yield aggregator’s total value locked (TVL). This adoption and TVL, in turn, adds fundamental value to the project and could ripple-out into the YFI price.

Yearn Finance price could rally as whales begin accumulation

Yearn Finance price has been forming higher highs and higher lows as it trends inside an ascending parallel channel. However, YFI’s recent upswing seems to be rejected by the psychological level at $40,000, indicating a revisit to the parallel channel’s lower trendline.

YFI/USDT 1-day chart

YFI/USDT 1-day chart

While this is bearish in the short-term, on-chain metrics hint at a “buy opportunity.”

The number of addresses holding between 1,000 to 10,000 YFI has increased by 25%, indicating that whales are interested in the DeFi token at the current price levels. 

A similar surge in the number of whales triggered a 45% upswing in Yearn Finance price back in early February. If history was to repeat itself, similar price action could be expected.

Yearn Finance holder distribution chart

Yearn Finance holder distribution chart

Portraying a similar picture is Santiment’s MVRV model, which reveals that Yearn Finance is in a “buy zone.” Overvalued altcoins tend to have a spike in the MVRV metric, and anything below the zero-line suggests that the asset is undervalued.

If Yearn Finance price manages to bounce from the channel’s lower trendline, a quick upswing to $40,000 is likely. A decisive close above this psychological level would likely trigger a FOMO among investors who could propel the governance token’s price higher.

In such a case, a 126% upswing to the 141.4% Fibonacci retracement level at $90,000 seems likely. But for this to happen, YFI bulls need to breach past the previous all-time high at $52,800.

Yearn Finance MVRV 30-day chart

Yearn Finance MVRV 30-day chart

On the other hand, it could be fatal for the Yearn Finance price if sellers push it below the channel’s lower trendline at $32,000. If this were to happen, YFI could drop 15% towards the 50% Fibonacci retracement level at $27,500.

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