The price of the second largest cryptocurrency could continue moving higher. However, the reason behind this price increase would not be due to a new update or a network upgrade. Indeed, analysts believe that the decentralized finance (DeFi) market could play a very important role to increase ETH demand through a yETH vault.
Yearn Finance yETH Vault Could Help Increase ETH Demand
The demand for the ETH cryptocurrency could continue growing in the coming days and weeks. The main reasons behind this increase would be Yearn Finance’s yETH vault that could attract a large number of ETH deposits.
Yearn Finance is one of the most popular DeFi protocols that is running and offering solutions to users all over the world. In recent months, the price of the YFI digital asset skyrocketed and surpassed $35,000 per coin.
According to the crypto analyst Anthony Sassano, the co-founder of ETHhub, explained that the yETH vault from Yearn Finance would definitely be a “black hole for ETH.”
On the matter, the analyst wrote:
“The yETH vault from Yearn Finance is going to be a black hole for ETH. That is, once ETH goes in, it is going to be very hard for it to come out. Now think about what this does to the price of ETH.”
The yETH vault from @iearnfinance is going to be a black hole for ETH.
That is, once ETH goes in, it is going to be very hard for it to come out.
Now think about what this does to the price of ETH.
— Anthony Sassano | sassal.eth ⛽ 🏴 (@sassal0x) August 31, 2020
He went on saying that the vault would help increase the number of ETH buyers that want to get exposure to the vaults offered by Yearn Finance. Furthermore, Sassano mentioned that he bets there are many ETH holders that want to defer management to someone else.
Another crypto expert, Alex Saunders, the CEO of Nugget News Australia, informed that the yETH vault product that could be offered by Yearn Finance would be a strong catalyst for Ethereum. Saunders explained that anyone that owns ETH can earn high yields just by holding ETH.
Now it is time to wait for the official release of yETH and see how bullish it can be for Ethereum and the entire crypto market. This could be a good way for ETH holders to start earning some money on their funds by using a DeFi protocol that is revolutionizing the entire crypto market.
Despite that, there are some risks that users are exposed to. It will certainly be very important to analyze the situation before making any decision related to whether to invest or not using the solutions provided by Yearn Finance.