[Yearn Finance (YFI) price plummeted due to suspected market manipulation]
On November 19, the price of Yearn Finance (YFI) was slightly above $9,260. The YFI token fell sharply by 45% from a high of $15,548 on November 13, hitting a low of $8,918, erasing gains from the past week. However, YFI/USD is still up more than 170% in the past month.
The YFI price plunge was driven by a shift in market sentiment coupled with accusations of market manipulation. On-chain data platform
Lookonchain discovered a large investor selling heavily during price drops. In addition, the dYd× team pointed out suspected market manipulation behavior, and they used a $9 million v3 insurance fund to cover the liquidation gap in the YFI market. Founder of dYdX
Antonio Juliano stated on social media that this was market manipulation targeting dYdx and the entire YFI market.
On November 18, panic over YFI prices led to an increase in liquidation quotas. According to Coinglass data, a total of 24 hours of liquidation occurred.
4.55 million US dollars, of which more than 3.07 million US dollars were liquidated in long positions.
Yearn Finance is a leading yield mining protocol in the decentralized finance (DeFi) industry, providing services such as loan aggregation, yield generation and insurance. The YFI token has risen significantly in recent weeks as the crypto market has recovered, reaching a high of $15,548, its highest level since May 2022. at present
YFI has posted weekly gains of just over 2%, with a 30-day performance of +85%.