YFI - $30k but where's the fireworks?

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Dec 3, 2020

Assets covered: Yearn.Finance (YFI)

Metrics used: Social Volume, Network Profit Loss, Historical Balance, Coin Supply on Exchanges, Daily Active Deposits

Summary: YFI broke the $30,000 mark but no euphoria to be seen.

YFI have since gone +7.41% since our last post and broken the $30,000 mark.

YFI performance since last post - Sanbase

As we inch upwards making new local ATHs, let's take a quick look at what the metrics are telling us.

Notable events since last insight:

The YFI effect

Before we dive into the metrics, it's worthwhile to note that YFI merger announcements are the new Coinbase listing effect, with the corresponding projects seeing nice gains following the announcement.

YFI related projects - Sanbase

Here's a list of projects that are associated with YFI in one form or another (Merger, Partnership, Rumoured) and how they are performing.

Social volume

Social volume - Sanbase

Social volume is considerable lower than the last rally prior to 20th Nov. Which is rather surprising. You'd think think the crowd would be excited for breaking the $30,000 barrier.

Looks like folks are remaining rather cautious (since it didn't close above $30,000) and nothing too crazy at the moment, leaving more room to move upwards.

Coin supply on Exchanges and Daily Deposit Addresses (DAD)

Coin supply on exchanges saw a spike on Nov 20 which coincided well with the dump that lasted till Nov 26th with the price going from $28,900s to sub $20,000 before bouncing.

Since then Coin supply on exchanges continues to trend downtrends, which is good as this alleviates sell pressure.

Daily active deposits reveals that quite a number of depositors are taking the opportunity to offload their bags at each local top. The latest push above $30,000 was no exception, seeing similar spikes as well.

However, Coin supply on exchanges is showing that there's no major deposit so DAD likely represents smaller YFI holders that wouldn't make much dent to the price (unlike what we saw in Nov 20).

Network Profit Loss (NPL)

Network Profit Loss - Sanbase

While there were some spikes recently, it's still nothing too wild like what we have seen in the past major runup where everyones was pretty much in crazy profits. We continue to see profit taking at each local top (as observed in DAD earlier), signalling a much more healthy rally.

That said, it's probably worthwhile to monitor the NPL as the price continues upwards for any of those crazy spikes. Here's a nice insight on how we leveraged on the power of Network Profit Loss.

Top holders and Historical balance

How the Top 10 was in last post:

YFI Top 10 holders previously - Etherscan

The Top 10 now:

YFI Top 10 holders now - Etherscan

YFI gov staking continues its downward trend, seeing YFI holder heading out to find a much better use for it elsewhere. Not surprised if a good amount of them ends up as collateral on Maker to mint more DAI since the $20M debt ceiling was approved.

YFI governance - Sanbase

Meanwhile AAVE YFI Lending pool is slowly trending upwards but utilization rate at 24.73% still remains 1.53% lower than before (in last insight).

AAVE YFI lending pool - Sanbase
YFI utilization - AAVE

YFI was recently borrowed as observed from the lending pool outflow today, indicating that someone's pretty confident that YFI will not hold the $30,000 mark.

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Dec 3, 2020

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Assets from this insight

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$ 33050.54

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