Analysts are predicting the launch of Yearn Finance’s yETH product could push ethereum into a new bull run, taking the crypto-asset’s price higher than its current value of $480.
yETH, which is being voted on by Yearn Finance token holders, is a new product that will automatically find the highest yielding decentralized finance protocol for ETH deposits. Yield farming has become one of the biggest crypto crazes in 2020, with the majority of decentralized projects centered on ethereum’s network.
Most analysts agree the new Yearn Finance protocol, which involves “vaults” seeking out the greatest farming returns, will drive up the demand for ETH. However, others have pointed out that the shifting focus towards DeFi projects could take away from ether being used for staking once ETH 2.0 launches.
NuggestNews founder and CEO Alex Saunders called Yearn Finance vaults exciting and a potential catalyst for ethereum, despite the impact on available supply.
Saunders said the streamlining of yield farming returns could lead to a reduction in competition, with other DeFi protocols unable to attract a similar level of investment.
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