Yearn Finance whales move close to $60m in double transactions, decoding ‘why’

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YearnFinance whales move close to $60m in double transactions, decoding 'why'

, on 8 February, there were two similar whale transactions involving Yearn Finance . A total of 3,869 YFI, worth about $29.8 million, were transferred between a known proxy and an address in two different transactions.

As a result, there was a noticeable uptick in the transaction volume indicator. Additionally, the volume levels seen were the highest since November.While the immediate cause of this whale move is unknown, numerous hypotheses could help explain the massive move. First, whales may be rebalancing their cryptocurrency holdings by trading different coins and maximizing profits.

Second, when they believe the price has peaked, they may sell off huge quantities of their stock to cash in on their gains. Third, we could seeFinally, it may serve as a way to control the token’s liquidity by adding or subtracting from an exchange’s holdings.According to the Netflow metric on Glassnode, the asset has also seen a respectable amount of outflow. More than nine YFI left the exchange on 8 February, as measured by Netflow.

This may not be an accurate representation of the total volume of transactions logged by Santiment, but it did indicate the existence of a token outflow.The daily period chart demonstrated that YFI had begun to trade sideways since its January rise. But it has managed to keep its support between $7,100 and $6,900.

It was trading at about $7,500 at the time of writing and had lost more than 2% of its value. In addition, the Relative Strength Index indicated that although the trend was still bullish, it was waning.

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