Yearn Finance (YFI) price dives 45% in hours– what happened?

2:49 pm
November 19, 2023

Yearn Finance (YFI) has experienced a staggering 45% price plunge within a few hours, dropping below $9,000 on November 18. This sudden decline was attributed to allegations of market manipulation, leading to a negative sentiment in the market and a significant increase in liquidations. The YFI token, which had recently reached highs of $15,548, witnessed a quick reversal in fortunes. The governance token of Yearn Finance, YFI had been experiencing a resurgence in the crypto market, with its price surge linked to profit-taking.

**Yearn Finance (YFI) price dives 45% in hours– what happened?**

Yearn Finance (YFI) saw a drastic drop of more than 45% to below $9,000 on November 18, wiping out all the gains made the previous week. The decline occurred amid allegations of market manipulation, including claims made by the dYdX team. The YFI token’s price, which was around $9,260 on Sunday morning, plummeted from highs of $15,548 to lows of $8,918 on Saturday, erasing all the gains it had made in the past month (Coin Journal).

**What Led to the Nosedive in YFI Price?**

The steep decline in Yearn Finance’s price was driven by negative sentiment in the market and allegations of potential market manipulation. Significant amounts of YFI were deposited to exchanges, and on-chain data revealed a large sell-off by a whale as prices plummeted. The dYdX team also highlighted alleged market manipulation, stating that they had used $9 million from their v3 insurance fund to address liquidation gaps in the YFI market (Coin Journal). Antonio Juliano, the founder of dYdX, expressed that the steep market decline was a targeted attack against dYdX, involving market manipulation of the entire YFI market and they were investigating alongside several partners to bring transparency to the issue.

The FUD surrounding YFI’s price increase in liquidations, with a total of $4.55 million being liquidated in 24 hours, and longs accounting for over $3.07 million (Coin Journal).

**What is Yearn Finance?**

YFI is the governance token of Yearn Finance, a leading yield farming protocol in the decentralized finance (DeFi) ecosystem. The platform offers a suite of products including lending aggregation, yield generation, and insurance, integrated by top DeFi players such as Aave, dYdX, and Compound. The token’s price surge is likely to have been influenced by profit-taking and a resurgence in the overall crypto market. As of writing, YFI has reduced its weekly gains to just over 2%, with a 30-day performance down to +85% (Coin Journal).


**Q: Is Yearn Finance (YFI) a good investment following the price plunge?**
A: The decision to invest in YFI or any cryptocurrency is subject to individual risk appetite and thorough market research. It is advisable to consult with a financial advisor before making any investment decisions.

**Q: Are there any regulatory measures being taken in response to the alleged market manipulation in the YFI market?**
A: Regulatory responses to market manipulation allegations in the YFI market have not been specified. It is crucial to monitor updates from regulatory authorities and the Yearn Finance team regarding this matter.

**Q: What measures has Yearn Finance taken to address the market manipulation claims?**
A: Yearn Finance has not publicly disclosed specific measures taken in response to the market manipulation claims. It is essential to stay updated with official announcements from Yearn Finance for any developments in this regard.


More in this category ...

4:39 am December 7, 2023

Six tips for an exceptional customer service strategy

2:09 am December 7, 2023

Data Monetization Strategies: Unleashing the Potential of Your Data Assets

1:00 am December 7, 2023

Successful Beta Service launch of SOMESING, ‘My Hand-Carry Studio Karaoke App’

Featured image for “Successful Beta Service launch of SOMESING, ‘My Hand-Carry Studio Karaoke App’”
12:16 am December 7, 2023

Coinbase unveils global, instant money transfers via popular messaging and social platforms

6:39 pm December 6, 2023

Decentralized Identity Management: The Power of Blockchain in Government

5:03 pm December 6, 2023

BitMEX Collaborates with PowerTrade to Introduce New Crypto Products for Traders

4:59 pm December 6, 2023

Reskilling your workforce in the time of AI

1:02 pm December 6, 2023

Assemblyman Proposes Bill to Regulate Digital Assets as Securities

Featured image for “Assemblyman Proposes Bill to Regulate Digital Assets as Securities”
9:45 am December 6, 2023

ORDI worth hits new all-time top as Bitcoin touches $42k

5:18 am December 6, 2023

Societe Generale Launches Inaugural Digital Green Bond on Ethereum Blockchain

2:33 am December 6, 2023

Bitcoin skyrockets to $44,000 as bulls brush bears apart

1:06 am December 6, 2023

DWF Labs Invests Additional $1.25M in FLOKI to Support the Ecosystem

Featured image for “DWF Labs Invests Additional $1.25M in FLOKI to Support the Ecosystem”
7:12 pm December 5, 2023

TokenFi (TOKEN) worth is up 48% as of late: Here’s why

5:38 pm December 5, 2023

Retailers can faucet into generative Computational Intelligence to beef up reinforce for patrons and staff

1:08 pm December 5, 2023

Record-Breaking Inflows in Crypto Investment Products Echo 2021 Bull Run

Featured image for “Record-Breaking Inflows in Crypto Investment Products Echo 2021 Bull Run”
12:36 pm December 5, 2023

Big Data and Analytics: Driving Efficiency in the Digital Supply Chain

11:58 am December 5, 2023

Jellyverse secures $2 million seed round to build DeFi 3.0

5:42 am December 5, 2023

A guide to efficient Oracle implementation

5:06 am December 5, 2023

From Fiat to Crypto: Exploring the Role of Regulated Exchanges in Digital Asset Adoption

4:44 am December 5, 2023

Top crypto picks to buy at rising market before it’s too late

1:10 am December 5, 2023

Core Scientific explains its latest bankruptcy plan ahead of court date

Featured image for “Core Scientific explains its latest bankruptcy plan ahead of court date”
9:36 pm December 4, 2023

Enhancing Privacy with Zero-Knowledge Proofs: The Power of Privacy-Focused Blockchains

9:29 pm December 4, 2023

Riot purchases BTC miners worth $290M from MicroBT

6:03 pm December 4, 2023

The Importance of Supply Chain Optimization in Today’s Business Environment

2:16 pm December 4, 2023

Standard Chartered Zodia integrates Ripple-owned Metaco’s crypto storage services

2:06 pm December 4, 2023

Web 3.0: The Internet of Value and Smart Contracts

1:13 pm December 4, 2023

Crypto Executives Predict Bull Run for Bitcoin in 2024, Others Disagree

Featured image for “Crypto Executives Predict Bull Run for Bitcoin in 2024, Others Disagree”
6:35 am December 4, 2023

Comparing Traditional and Decentralized Storage: What You Need to Know

6:23 am December 4, 2023

Empowering Security Analysts: Strategies to Maximize Productivity and Efficiency

1:12 am December 4, 2023

Bitcoin tops $40K for first time in 19 months, Matrixport tips $125K in 2024

Featured image for “Bitcoin tops $40K for first time in 19 months, Matrixport tips $125K in 2024”