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Yearn.finance (YFI) fell to four digits—but are whales accumulating?

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The price of YFI, the native token behind the decentralized finance (DeFi) giant Yearn.finance dropped to double-digits. It has started to recover as the market sentiment around Yearn.finance started to show signs of improvement.

On October 30, the price of YFI dropped to as low as $9,631 on Binance. The DeFi space saw a marketwide pullback, causing many major tokens to plunge.

yfi yearn finance
The price of Yearn.Finance throughout its history. Source: YFIUSDT on TradingView.com

But in the medium term, there are positive factors that could buoy the sentiment around YFI. They are the potential reaccumulation of whales, new product launches, and post-capitulation recovery.

Whales might start to reaccumulate YFI

Earlier this week, a pseudonymous DeFi investor known as “Future Fund” said Sam Bankman-Fried is the biggest holder of YFI.

Bankman-Fried, who is better known as SBF, is the head of Alameda Research and the CEO of FTX. The investor wrote:

“For everyone that’s mad at SBF for shorting YFI. He is also now the largest holder of YFI at a total of nearly 1800 YFI.”

On October 11, SBF confirmed on social media that he placed a net 200 YFI short. At the current price of $11,000, that is equivalent to $2.2 million. But, a reported 1,800 YFI position is equivalent to $19.8 million, which far exceeds the initial short position.

The reported spot holding could indicate that some whales might be showing signs of reaccumulation.

But, some investors questioned whether reading too far into the trades of whales, like SBF, is important.

“Maybe, just maybe, we are reading too much on all the trades done by Alameda, who has a MARKET NEUTRAL mandate and is an arbitrage-focused trading shop,” a pseudonymous private fund manager said.

A new Yearn.finance product launch

According to “banteg,” a developer at Yearn.finance, the protocol is considering enabling buyback on the v2 vaults. He said:

“Can confirm that buying back YFI is how v2 is currently being structured. Treasury automation needs much more work though.”

Due to the limited supply of YFI, a buyback feature as a part of the v2 vaults could strengthen the value proposition of Yearn.finance over the longer term.

Post-capitulation recovery

Since its peak on September 12, the price of YFI plunged by more than 77%. The price trend demonstrates a capitulation-like phase, where it crashed strongly in a short period.

Santiment, an on-chain market analysis firm, said YFI is showing signs of bullish divergence following the correction. It wrote:

“It appears that YFI is showing some signs of some bullish divergences, based on our research. An increase in whale activity is a good sign, and there appears to be an uptick in active addresses as well.”

Whether Yearn.finance would recover in the near term primarily depends on the overall sentiment around DeFi. So far, the DeFi market is lagging behind Bitcoin, alongside Ethereum.

yearn.finance, currently ranked #46 by market cap, is down 7.7% over the past 24 hours. YFI has a market cap of $312.41M with a 24 hour volume of $237.54M.

yearn.finance Price Chart

YFIUSD Chart by TradingView

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Source: https://cryptoslate.com/yearn-finance-yfi-fell-to-four-digits-but-are-whales-accumulating/

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Uniswap Retroactive Proxy Contract Airdrop Proposal Receives 28 Million Votes

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Community voting is on for Uniswap’s new governance proposal. The same will see users receive more than 5 million UNI tokens via a proxy contract. As of now, more than 28 million votes have gone in favor of the airdrop. Around 1.3 million votes are against the proposal.

Voting Begins For Uniswap’s Second UNI Airdrop

The voting process is on for passing Uniswap’s Phase 1 of Retroactive UNI Governance Token Distribution. The proposal, if successfully passed, will see 12,619 wallet addresses receive 400 UNI tokens each. However, for the successful receipt of the tokens, they must have interacted with the DEX through a third party or a proxy contract.

As per the numbers shared in the description on the official Uniswap website:

Specifically, this proposal transfers 5,047,600 UNI to a new MerkleDistributor contract, which will then allow for 400 UNI to be claimed by each of the 12,619 accounts held by users of the following projects:

Project Accounts % of total
Argent 3418 27.09%
DeFi Saver 890 7.05%
Dharma 2833 22.45%
eidoo 301 2.39%
FURUCOMBO 57 0.45%
MEW 4278 33.90%
Monolith 19 0.15%
Nuo 740 5.86%
Opyn 79 0.63%
rebalance 4 0.03%

Currently, the airdrop proposal has received upwards of 28 million votes. And around 1.3 million are against the helicopter-like distribution of Uniswap’s governance tokens. Voting will end on October 31 at 8 AM UTC. A quorum of 40 million votes is necessary to pass the proposal.

Dharma Protocol Proposed The Proposal Because…

Back in September, its users were left out of the initial airdrop. According to the Dharma team,

the way the retroactive airdrop was architected seemed to make a slight oversight in the snapshotting process — only addresses which directly called the Uniswap contracts were considered to be users.

Also, increased programmatic bot proliferation might have resulted in one user having multiple addresses. As per the description:

The Phase determination was made based on how easy it is to programmatically hook a trading bot into them, as this is a proxy for what portion of these cohorts risk representing multiple addresses per end-user. Phase 1 is the less programmatically accessible cohort, indicating a lower likelihood of multiple addresses per end-user.

If Phase 1 Passes, There Will Be Phase 2

On the successful passing of the first phase, Dharma has pledged to put in place a second UNI governance token distribution proposal. But they have also discretely mentioned their agreement to the final result (success or failure) of both voting processes.

If either Phase fails, we will accept that as the final determination of the Uniswap community. Should both Phases pass, we will not vote in favor of any further retroactive airdops.

Has this proposal gone down well with other members of the community? Well, some like Jeff Dorman, CIO of the investment management firm Arca have presented a bullish case for UNI (as opposed to those who think the proposal will actually devalue the token’s price).

In a detailed Tweet thread, Jeff called Uniswap’s governance token a ‘pass-thru token.’

UNI is being misrepresented as a “governance” token, and the market has shown that governance has no value. But in reality, UNI is a pass-thru token — where revenues will be passed thru to token holders. $UNI holders are about to earn a very large revenue stream in Feb 2021.
Will Jeff’s views hold true, and will we see the current phase of the UNI airdrop proposal win a majority? That remains to be seen.
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Source: https://cryptopotato.com/uniswap-retroactive-proxy-contract-airdrop-proposal-receives-28-million-votes/

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BREAKING: Bitcoin Just Broke To Its Highest Price Since Jan-2018

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Bitcoin is having a good year despite the coronavirus panics and the nervousness of the markets.

After reaching an annual high of about $13863 on Oct. 28, the world’s largest cryptocurrency by market capitalization underwent a sharp correction of almost $1000 before rebounding and stabilizing at $13281.

From that point on, it began a stable recovery process, with small daily growths, closing on Friday near $13680.

Today October 31st, Bitcoin managed to break that record, reaching $14,100 (Bitstamp) at the time of writing. This represents a 5% growth in the last 24 hours.

Bitcoin’s Ascend to New Highs

Bitcoin has been on a bullish streak since March, when the crash in the financial markets erased all the gains it had made throughout the year, taking the token to the lowest level since April 2019.

For those swing and position traders, things are looking pretty rosy. The cryptocurrency has respected the bullish channel that was formed since March. If the trend continues, the most robust support in the channel could be near $11,500 with significant resistance above $14,500, a level not experienced since early 2018, when the BTC bearish run began after the 2017 bubble burst.

btcusd_oct31
BTC/USD. Source: TradingVIew

From a technical standpoint, Bitcoin is in an overbought zone. The RSI is above 70 points, so caution is advised in the face of a possible later sell-off. Market sentiment and announcements from large financial institutions are currently serving as support to continue pushing up prices.

For example, MicroStrategy recently raised its investment in Bitcoin to $450 million. Square bought $50 million in Bitcoin, and PayPal added support for purchasing cryptocurrency. This has undoubtedly helped boost investors’ confidence who are tired of almost 2 years of struggling.

The MACD doesn’t give a clear signal to traders. Still, it does point to a continuation of the uptrend in the short term – although the closeness between the “short” and “long” lines shows that a normal correction can occur at any time.

Respecting Short-Term Boundaries

In the short term, Bitcoin has respected the Fibonacci retracements: The corrections have not broken below the $12,900 support, and both the RSI and MACD point to a possible price correction after the recovery.

The proximity of the U.S. presidential election could also play a key role in Bitcoin’s behavior in the coming weeks. There is a general belief that an eventual victory for Trump could lift investors’ optimism. At the same time, Biden could cause nervousness and a possible fall in the stock markets.

Bitcoin could follow these trends, although there are reports that, in general terms, the crypto is decoupling itself from any other traditional financial market. However, an eventual change of president in the United States is an event big enough to consider before making any investment.

If things stay within ordinary, Bitcoin could touch its ATH halfway through next year. Never before has Bitcoin’s price been above $10,000 for so long, and this is a sign of strength.

The bullish run of the past few months could also be considered the most apparent upward trend since the 2017 bubble. In fact, this movement looks more natural and mature than the one of 3 years ago.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/breaking-bitcoin-just-broke-to-its-highest-price-since-jan-2018/

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