Despite a market plunge in cryptocurrency, the native token of decentralized finance protocol Yearn Finance, YFI, has managed to increase by 7% as investors are looking to take advantage of the upcoming liquid staking derivatives (LSD) rollout.
Over the past 48-hours, YFI has surged by 22.61% against its bitcoin(BTC) trading pair and 18.87% against tether (USDT), according to Cryptowatch data. This has brought the current trading price of YFI to $10,770 with a 24-hour trading volume topping $252 million across all exchanges.
The optimism among YFI traders was last week’s announcement that Yearn Finance was moving into liquid staking derivatives. The LSDs are a type of token that provides investors with exposure to an underlying asset while receiving staking rewards as a part of Ethereum’s proof-of-stake network.
“Get exposure to a basket of LSDs in one token,” Yearn Finance said in a tweet. “Spread your risk. Receive boosted yields.”
Liquid staking derivatives have been gaining attention as a way for cryptocurrency holders to earn interest on their assets while also keeping them in the network to help with staking. The liquidity of these derivatives makes them more accessible to the wider market, increasing the adoption of decentralized finance protocols.
While the cryptocurrency market has been experiencing a downward trend, with Bitcoin and Ethereum down 4.44% and 4.58% respectively, YFI has managed to stand strong with its upward trend. This is a positive sign for the DeFi protocol, which has been experiencing rapid growth in the past few months.
Yearn Finance’s founder, Andre Cronje, has been actively working on the project and has gained a reputation as one of the most innovative developers in the cryptocurrency space. The community’s excitement over the upcoming liquid staking derivatives has been growing, and the recent surge in YFI’s trading price is a reflection of this.