The quality of madness has always been associated with the cryptocurrency market in general and decentralized finance in particular due to the strange and often illogical movements of some digital currencies.

The recent surge in some of the DeFi coins has led to some unusual results.

Where the digital currency YFI was one of the digital currencies that caused a sensation, especially after its price rose above the price of bitcoin and even reached three times the price of bitcoin.

And the hype around the digital currency YFI was not only about the price of the currency exceeding the level of Bitcoin, but also with its returns and profits, which reached more than 11,000% in one week after its launch.

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And the rise of the digital currency YFI coincided with what the decentralized finance market witnessed in that period of record rises for many digital currencies in the same specialty.

But the continuation of the situation is impossible and behind each rise and fall, the digital currency YFI came under selling pressure that led the currency to drop to the level of $10,160 after hitting a peak at $45,000.

A large portion of YFI cryptocurrency addresses are at a loss:

According to the latest charts provided by the “intotheblock” platform to track cryptocurrency, which provides an index that tracks the addresses held in the currency and how it is performing.

He suffers from a severe fall.

price more than a dollar It’s down 17% over the last 7 days.

At the current price of $11,465.3, 86.6% of titles with YFI credit are sold out. pic.twitter.com/h90f8xhCsh

– intotheblock (intotheblock) October 29, 2020

This indicator showed that at the current price level of $10,169, 86.6% of the YFI-holding addresses are out of profit.

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Meaning that 86.6% of currency holders will incur a loss if they sell according to their positions today.

It is important to note that the YFI cryptocurrency was initially worth $0 at the time of launch.

Shortly after that, on September 12, the price of the digital currency reached $45,000.

After a month and a half of peaking, the coin is down more than 74% at the time of this article’s publication.

According to the indicators of decentralized finance currencies, it is not limited to the digital currency YFI, but many decentralized finance currencies have witnessed the same scenario as the YFI currency.

Why such a sharp correction?

As for the massive collapse of the YFI cryptocurrency, there are various factors that caused it.

Among the most important and prominent drivers that caused the collapse of the cryptocurrency YFI was its acquisition of lower value due to lower returns on the Curve platform.

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Jason Choi, director of research at Spartan Capital, explained earlier that the Year Finance project is based on the Curve stablecoin pool.

Hence, Year Finance holding the vast majority of capital in yCRV vault seriously undermined YFI’s upward trend.

In addition, there has been a steady decline in the popularity of “yield farming” protocols lately, due to fraud, excessive noise and market manipulation that seem to have hindered its expansion.

Without forgetting what happened to the “Eminence Finance” project, which is behind the same founder of the “Yearn Finance” project, and perhaps it is also one of the factors that led to the decline of the digital currency YFI.

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The founder of the Yearn Finance project is facing a lawsuit … What is the impact of this on the price of the digital currency YFI?

Someone on Twitter made $1M in YFI and then disappeared…Details here