Bitcoin, by contrast, is up 3% in the past 24 hours as the Federal Reserve confirms its dovish stance on monetary policy.
Altcoins may suffer further if ETH slides under $350, one prominent trader on BitMEX recently.
Commenting on the chart below, which shows that the leading cryptocurrency (which also acts as an altcoin barometer) is on the verge of losing an important support, he said:
“Super important Level for $ETH: Currently $ETH and it’s ERC20 minions seem to be leading the market, would not be surprised to see another -25% day across the board for #DeFi tokens if $ETH trades under 350.”
While YFI’s short-term price future may seem to be up in the air, most agree that the project’s long-term prospects remain in a positive state.
Tyler Reynolds, an employee at Google and a close follower of the crypto space, recently noted that per his price to free cash flow analysis, YFI could reasonably trade at over $100,000.
This is based on YFI’s governance contract, which generates yields every day by users who transact on the Yearn.finance platform.
Analysts expect the project’s revenues to increase over time as the Ethereum ecosystem grows, driving more capital and higher yields into the Yearn.finance ecosystem.
This could mean that YFI’s intrinsic value will increase over time, thereby dragging the price of the coin higher.
— Tyler Reynolds (@tbr90) September 16, 2020
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