Yearn finance (YFI) Price Plummets 45% in Hours Following 160% Monthly Rally: Is the Crash Set to Continue?
Crypto News – On November 18, Yearn.finance (YFI) experienced an unexpected and dramatic drop in price, plummeting by 45% within a matter of hours. This significant price decline, from $14,500 to $8,300, drew considerable attention within the cryptocurrency market. Yearn.finance is a prominent player in the decentralized finance (DeFi) ecosystem, and such a steep selloff prompted speculations regarding potential underlying issues.
YFI had surged impressively, gaining over 160% in value during the month of November, reaching a peak of $15,591. However, in just 24 hours, the price tumbled to $8,421, resulting in a loss of over $250 million in market capitalization, which dropped from $525 million to $275 million. Although there has been a slight recovery in market cap, investor confidence has been shaken due to the abrupt decline.
Concerns have arisen among some observers who suspect insider involvement or an exit scam, as nearly half of the total YFI supply is concentrated in just 10 wallets, including those associated with cryptocurrency exchanges.
According to data from Coinglass, YFI witnessed liquidations exceeding $5 million within the past 24 hours. At one point, YFI contract positions had reached as high as $162 million, but currently, positions on major platforms have dwindled. Moreover, there has been a notable increase in YFI open interest (OI), indicating a growing number of traders taking short positions on YFI.
In the broader cryptocurrency market, major altcoins are also experiencing downward pressure, with Bitcoin slowly regaining its dominance. The total market capitalization has seen a decline of nearly $25 billion over a span of two days. Analysts anticipate further pullbacks before a potential resurgence in capital inflow into altcoins.
Prominent altcoins like Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA) have all recorded approximately a 3% decrease in value over the last 24 hours. DeFi tokens, in particular, have been adversely affected, contributing to a reduction in the overall global market capitalization.