The BIFI price has crawled back as yield-optimizing blockchain projects bounce back. Beefy Finance’s token is trading at $0.0082, which is a few points above the intraday low of $0.0077. The current price is about 92% below the highest level in 2021. As a result, its total market cap has crashed to more than $37 million.
Yield optimizer token jumps
Beefy Finance is a leading player in the decentralized finance (DeFi) industry. Its business model is that it offers a multi-chain yield optimizer that allows users to earn compound interest on their crypto holdings.
By comparing yields of various platforms, Beefy then selects the coin with the biggest yield. It simply maximizes returns from various liquidity pools and automated market-making projects. Beefy is compatible with the leading blockchains like Fantom, BNB Chain, Polygon, Avalanche, and Arbitrum among others.
According to DeFi Llama, the total value locked in Beefy Finance has been in a downward trend. It has crashed from an all-time high of over $1.22 billion to the current $259 million. This decline is in line with that of other DeFi protocols.
BIFI is the governance token for Beefy Finance. The BIFI token has jumped in the past few hours as other yield optimizers rebound. For example, YFII price has jumped by more than 300% in the past two days. Similarly, Yearn Finance has also jumped. Other DeFi tokens like Uniswap and AAVE have also rallied.
This performance is mostly because of the overall rebound of cryptocurrencies and US equities. The Dow Jones index has rallied by more than 3%. Another reason is that investors are simply buying the dip after the coin crashed hard in the past few months.
BIFI price prediction
The four-hour chart shows that the BIFI price has been in a strong bearish trend in the past few months. The sell-off accelerated after the coin moved below the important support level at $0.0133, which was the lowest level in May. It has also crashed below the 25-day and 50-day moving averages.
Therefore, Beefy Finance price will likely continue falling as bears target the next key support level at $0.0070. A move above the resistance at $0.01 will invalidate the bearish view.