DFI.Money (YFII) price took a dive by 70% on the 25th of May, its biggest drop this year. It has led YFII investors to speculate if more plunge is yet to come or if the luck of the crypto just might reverse.
Binance is not too confident about the latter. The cryptocurrency exchange is displaying a warning to those investing in YFII that reads, “the price of this token is subject to high volatility”. Whoever wants to invest in this crypto now has to accept this message and the associated risks before proceeding.
The reason behind YFII Crash
There are many cryptos that have receded from their previous highs to new lows this year. It is a sharp contract from 2021 when many tokens saw many x pumps. In YFII’s case, investors observed the price rising by 400% by the end of August 2021. It then took a general retracing trajectory, and since then, the coin’s price has been going down – hitting lows in May 2022 even before the crash.
The steepest dive that the YFII price took this year was on the 25th of May when it plunged from $1213 to $396 – an approximately 70% decrease in value.
The bulk of this crash took place within one hour, as the price bounced back to $940. However, it has been three days since the incident, and the value has taken another dive—the current price of YFII at $546.
Binance Futures delisted YFII
This dive is not the only time DFI.Money has been in the news. In April this year, Binance announced that it would delist YFII/USDT margined contract. The news sent the crypto market into a tailspin – resulting in the YFII price wrenching down more than half – going from $2,300 to $1,189.
These negative decisions come in the face of the promise that the DFI money team made to the investors – a high annual percentage yield (API). Claiming that YFII investors might be the victim of rug pull, there are those who believe that developers have abandoned the project.
As far as the cause behind the crash goes, it is still unclear. The price has varied wildly since the initial plunge, going as far as bouncing back by 300% at one point – retaining the interest of some buyers.
DFI.Money Technical Analysis
YFII broke through the key support it had been retaining for months at the beginning of May 2022 – crossing the $1,500 region and continually dropping to $860 before going up again.
The bounce caused YFII to encounter a new resistance level and fail to break through it. Failing to find support caused a shooting star candle to form on the daily chart as the YFII price could not cross $1,500 on the 15th of May.
YFII’s inability to cross the threshold and the bearish candle alerted the crypto crowd of possible new lows. It was then that the steepest plunge of this year happened as YFII went from $1,200 to $330 within an hour. It then recovered shortly afterwards – probably because of the shorting positions of some investors or buyers stepping in to buy the dip. On 26th May 2022, DFI.Money became one of the biggest crypto gainers of the day.
Buyers should keep in mind that investing DeFi coins is risky during a time of high market volatility.
That being said, volatility and the crypto market are a pairing that has existed since the introduction of blockchain. Some investors are still going to step back to observe the reason behind the crash. Right now, however, all we have are speculations that have given voice to questions. Was volatility a way to remove the less daring, or is there some merit to the rug pull rumors?
DFI.Money Explained
DFI.Money is a DeFi platform forked from Yearn.Finance: a platform on which users can deposit and stake their ERC-20 tokens and earn daily interest.
The DFI. Money Platform builds products on leveraged trading. Governing this platform is YFII, an ERC-20 token that optimizes the yields deposited on DFI.Money.
Read More
DeFi Coin – Our Recommended DeFi Project for 2022
- Listed on Pancakeswap, Bitmart (DEFC/USDT)
- Automatic Liquidity Pools for Crypto Swaps
- Launched a Decentralized Exchange – DeFiSwap.io
- Rewards for Holders, Staking, Yield Farming Pool
- Token Burn
