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Aave is on the rise! YFI price approaches $20,000, breaking Bitcoin's 2017 all-time high record.

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Aave is on the rise! YFI price approaches $20,000, breaking Bitcoin

Yesterday (28th), after the decentralized finance protocol Aave, currently with the highest total value locked in the network, announced its support for Yearn.finance's governance token YFI, the price of YFI surged all the way, even surpassing the historical high of 19,891 set by Bitcoin on November 17, 2017.

Price Approaching $20,000

Looking back over the past few months, Yearn.finance is undoubtedly one of the most successful protocols in the decentralized finance (DeFi) space. According to data from DeFi Pulse, the protocol's Total Value Locked (TVL) is currently approaching $1 billion. At the time of writing, the project is the fifth largest DeFi protocol on Ethereum, following Curve Finance, Maker, Aave, and Balancer.

Yesterday (28th), the decentralized lending protocol Aave (LEND) announced support for YFI, meaning YFI holders can use the token as collateral to borrow other digital assets on the platform. As Aave is currently the largest DeFi protocol across the network (with a TVL exceeding $1.52 billion), its support for YFI implies more use cases and consensus value for YFI. This is exciting news for the entire Yearn.finance ecosystem, with $56 million worth of YFI already locked in the Aave platform.

Following this announcement, YFI surged, rising approximately 30% in the past 24 hours, with Binance exchange quoting a price approaching $20,000, reaching $19,981. This surpasses Bitcoin's historical high of $19,891 set on November 17, 2017.

Infinite Development Potential

The rapid rise of Yearn.finance tokens in recent weeks has astonished all investors in the market. However, Yearn.finance is still a relatively early-stage project, actively seeking opportunities for collaboration and development space with other platforms. According to previous reports, a conversation between Yearn.finance founder Andre Cronje and FTX founder Sam Bankman-Fried on the 28th revealed their partnership, with Andre Cronje stating in a tweet:

"It seems the secret is out, so time for some expectations management. We are working on a long-term plan, so nothing will be out in the short term. But there will be some very exciting stuff coming in the future."

On the other hand, Mariano Conti, a community member of the decentralized stablecoin protocol MakerDAO, revealed on Twitter today that MakerDAO and Yearn.finance will hold a meeting regarding the details of the new product yETH vault. This not only indicates that the two parties will collaborate on this product but also suggests that MakerDAO may soon support YFI as collateral for DAI.

Is $20,000 the peak for YFI, or will it continue towards the next target of $30,000?