Crypto whales are known not only for being the biggest players in the crypto world, but also for knowing how to take advantage of market opportunities better than anyone else, and this seems to be what they are doing with DeFi. Decentralized finance is a considerable phenomenon, and crypto whales know it, and that’s why here we bring you a brief analysis about it.
Decentralized finance (DeFi) grows, as does crypto whale interest in it
As many of you know, decentralized finance (DeFi) began by mimicking the normal financial world, but the way in which it can be leveraged has greatly expanded. For example, we have Yearn Finance (YFI) which has made headlines for the price increase it has had recently, even surpassing Bitcoin.
Yearn.Finance appears to have been a key change in the market. It is effectively an automatic advisor for performance in a smart contract. There are several protocols that provide return on the capital that is lent.
These performances vary from protocol to protocol. What YFI does is automate and optimize loans so that interested parties can get the most value for their capital without having to research each protocol.
Likewise, Yearn Finance’s advantage over Bitcoin is that it has a token supply of only 30k, making it even scarcer than BTC. Hence, $ YFI is being considered the toughest money the world has ever known.
It is valid to say that at this moment a mini revolution in DeFi is brewing thanks to yearn.finance. The reason is that it gives retail investors the opportunity to participate in more lucrative performance opportunities.
In addition to this, we have what has been called the “Weird DeFi” or “Rare DeFi”, which are those that have emerged from memecoins. Many of these are based on the Ethereum blockchain, thus indirectly increasing people’s interest in learning more about ETH.
All of this boom we see in a growing interest from crypto whales, and it’s what Whale Alert has been reporting recently.
Are whales more interested in decentralized finance?
Recently, Whale Alert reported some movements that indicate that Ethereum whales are on the rise, while this cryptocurrency surpassed US $ 400. This week two unknown crypto whales separately moved 189,735 Ethereum coins worth approximately 80.88 million dollars.
The recent whale movements were triggered by the phenomenon of DeFi tokens using the ERC-20 protocol to facilitate transactions. Also, we must remember that Ethereum 2.0, the protocol update, will launch its final testnet this month.
Also, a week ago two Ethereum whales moved 53,455 ETH, as DeFi tokens gained more popularity. This amount was transferred from the Kraken Exchange to an unknown wallet and vice versa.
The YFI case
Directly or indirectly, it seems that crypto whales do pay attention to what is happening with DeFi in general. In a more explicit sense, we can analyze your activity with YFI in the last hours to see if the interest is real.
From August 31 to the time of this publication, there have been ten transactions with YFI. Of these, six have been from unknown wallets to exchanges, indicating that the whales are currently taking advantage of the growing sales benefits resulting from the boom in the price of this cryptocurrency in recent days.
Thus, crypto whales have introduced 505 YFIs in different exchanges among which Binance stands out. Subsequently, the whales that have decided to accumulate have also carried YFI tokens from exchanges such as Binance to unknown wallets. The accumulated sum is equal to 480 YFI, moved by four movements.
In this way, the total mobilized in recent days is 985 YFI, which translates into USD 31,478,048.85. This according to the YFI price published on CoinMarketCap ($ 31,957.41). This, in conjunction with ETH movements confirms to us that crypto whales are keeping abreast of the benefits of trading DeFi-related tokens.
Although at this time the interest in this sector is evident, we must remember that you must always operate with care. For example, in the case of YFI, various outlets have reported that the most significant threat to yearn.finance is what the business world calls a “point man risk.”
Right now, many people trust the initiatives of its creator, Andre Cronje. If for some reason Cronje decides to leave this project with DeFi, the market is likely to lose faith in yearn.finance, plummeting prices.
Investors with large amounts of capital will continue to make more money than smaller fish. Namely, crypto whales. But this is not to say that small investors are not doing well by taking an interest in DeFi.