For the first time in the decade-long history of the asset class, an altcoin has surpassed the price of bitcoin.
On August 20, YFI, the native governance token of the Yearn.Finance’s DeFi protocol achieved this unprecedented feat by climbing all the way up to $14,878.
Yearn.Finance is a new DeFi protocol launched in July 2020. It launched without a pre-mine and claimed to be the first Ethereum-based protocol that grants token holders total control over the network.
Continue reading for more on the crypto community’s reaction to YFI’s rapid spike, along with other big stories and market updates from the day.
YFI Passes Bitcoin as the Most Expensive Crypto Asset
Over the past month, YFI has spiked nearly 32,000%. Its exponential growth can be largely attributed to the fact that the total supply of the token has been capped at only 30,000.
While many analysts and industry insiders anticipate a pullback in price, there are also those who think YFI will continue to grow in the foreseeable future. According to them, YFI’s total supply has nearly been fully minted, with more than 29,960 tokens currently in circulation.
However, YFI price action is quite intriguing given that its developers themselves have described it as,
“a completely valueless 0 supply token.”
Bitcoin Continues Bleeding After Failed Breakout [Analysis]
On August 17, the bitcoin price broke out from the $11,950 area, which had been acting as resistance since the August 2 high. However, higher prices could not be sustained. BTC has been decreasing since, falling back below the $11,950 level, which is now expected to act as resistance.
The closest support area is found near $11,150, coinciding with the 50-day moving average (MA). Technical indicators are bearish. There is a bearish divergence on the RSI, and the short-term MACD has crossed into negative territory.
- Bitcoin has fallen below the $11,950 level, which should act as resistance.
- Long-term technical indicators are bearish, but short-term signals suggest a bounce is likely.
- The price is possibly in sub-wave 4 of a five-wave formation.
Proposal to Cut Ethereum’s Annual Inflation Rate Met With Miner Criticism
Ethereum miners are expectedly outraged by a recent Ethereum Improvement Proposal (EIP) that suggested the block rewards should be reduced to only 0.5 ETH.
The proponents of this proposed move argue that by doing so, the community will be effectively lowering the annual inflation rate while helping Ether retain its purchasing power.
Unlike the Bitcoin network, changes in issuance rate are not scheduled by Ethereum’s network rules. There is no Ethereum halving to control the rate of inflation.
Bitcoin Dominance Rate Struggles to Stay Above 60%
At the beginning of August, the Bitcoin dominance rate fell below the long-term 62.80% support area and validated it as resistance. After that, however, it dropped back down to reach a local low of 59.9%.
Both the RSI and MACD have been forming bullish divergences, and the latter has turned positive. This is a sign that the rate is likely to move back towards the 62.80% area once more.
These Two Altcoins are Aiming for a Strong Rebound
BeInCrypto technical analyst Valdrin puts the spotlight on two relatively lesser-known altcoins that seem primed for a strong rebound: NOIA and Cartesi (CTSI)
The NOIA price has been increasing since May 3, topping out at 2,000% when it reached a high of 1,249 satoshis on August 16. However, there is considerable bearish divergence building in both the RSI and MACD, a sign that the price has likely reached, or is close to reaching a top.
CTSI, meanwhile, appears bullish so long as the price remains above 760 satoshis.
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