DeFi Benefiting from Renewed Risk Appetite, YFI Enjoying a 30% Turnaround
There have been rumors floating on the Crypto Twitter that the creator of the DeFi darling YFI, Andre Cronje, has “permanently left the lead of development and possibly the project after reports he fell in depression.”
Some even say, “the YFI Team is trying to mitigate the situation with a cover-up.”
However, CL, who works on the design at Yearn.Finance refuted these rumors with a simple “he did not quit.”
im on the team and he did not quit
— CL (@CL207) October 8, 2020
Cronje hasn’t been active on his Twitter either; his last tweet was on Sept. 29, right after the Eminence.Finance debacle which rug pulled $16 million.
This isn’t the first time the market is talking about Cronje’s exit from the project. In early August, in an interview, he talked about quitting but after a clear mind reaffirmed the crypto community that he isn’t going anywhere any time soon, at least, “until there is nothing left to build.”
“This space won't get rid of me,” he added.
Before that, back at the end of February, the “toxic community” of DeFi had pushed him to make a similar decision, but he said he learned his lesson.
Unlike the last time when his quitting crashed the YFI price by 22%, the positive momentum in the market has YFI jumping following the correction, of course.
In mid-September, YFI hit its all-time high at above $44,000, surpassing 1 BTC the previous month and hitting BTC’s ATH before bitcoin.
But before Sept. was over, YFI crashed more than 54%, as the DeFi frenzy started to cool off. The pullback after a wild rally has been expected. But the DeFi correction didn’t stop there.
And yesterday, it went down as low as under $12,300, another about 40% drop and took all the DeFi down with it.
“Volume indicates that may have been the YFI bottom, and the DeFi bottom by extension,” said trader and economist Alex Kruger.
The trader also added for further confidence in this DeFi bottom; we need stocks not to go on full risk-off mode and “Cronje to behave like a grown-up – Bet he'll come out of his cave within weeks, release a new product, make YFI pop 30-50% in days, and have his sycophants like his boots.”
And today, we have finally started uptrending that YFI surging above $15,000. With a jump in price, other metrics are growing too.
$YFI's perpetual swaps open interest is increasing along with the price. This trend suggests a bullish pattern, as more participants are entering the market.
Today, the dollar amount in outstanding contracts reached its highest number ever, with $27.9 million. pic.twitter.com/LjZHwTWBLX
— intotheblock (@intotheblock) October 9, 2020
YFI, however, is not the only one propelled by Bitcoin’s positive move yesterday, small-cap, DeFi related assets are the ones benefiting from the renewed risk appetite.
YFII is leading with 65% gains along with with the likes of bxrz (28%), UMA (27%), AKRO (25%), RUNE (23%), SUSHI (21%), UNI (20%), CRV (17%), and LEND (13%).
“Despite the re-pricing of various tokens that dominate DeFi ecosystem, the actual amount locked remained relatively sticky and largely unchanged,” said Denis Vinokourov of Bequant. “Pointing to profit taking, as opposed to capital flight related flow,” he added.