YFI increases by 50% thanks to the Binance effect
Within the crypto market the so-called „Coinbase Effect“ is already well known. A boost in the price of any crypto currency that is listed by the exchange, thanks to the show of confidence that represents that a company as well positioned as this one trusts in a currency to trade it. Something that the currencies listed by Binance are also starting to experience, now that YFI is increasing 50% thanks to the „Binance Effect“ as Changpeng Zhao comments in the Tweet of the day.
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The Binance Effect on YFI
Every day that passes, Binance seems to improve his situation even more. Launching more products and services, with which it has created a solid enough infrastructure to consolidate itself as the most important company in the whole crypto world. Thanks to the quality of the service it provides to its users, as well as the innovation it leads in the crypto market.
Therefore, it should come as no surprise that there are signs of what could be called a „Binance Effect“. An increase in the price of any crypto currency that starts to be traded on the exchange. Because of the confidence this would convey to users about the newly listed virtual currency.
This would be just what Yearn.finance (YFI) has been experiencing in the last few hours. When it announced that it would be listing on the exchange, it increased its price by 50%. An event that is even more surprising as YFI is only the governance token of the DeFi yEarn project. So at the time of its creation it was thought to be worth 0 dollars.
„The price of the DeFi YFI token explodes after it is listed by Binance“.
However, the crypto market’s appetite for Decentralized Finance projects was enough to increase the price of YFI from $4.12 to the current $6.69 in less than 24 hours. In what seems to be a sign of Binance’s great influence on the crypto market, as Changpeng Zhao’s tweet seems to suggest.