With most of the top coins in the DeFi sector undergoing quick bull runs, a crypto fund has just bought $2 million worth of Yearn.Finance token.
With the DeFi market going rogue and the bears subsequently taking over in previous weeks, it has since undergone a sporadic turnaround to make massive surges. As it stands now, DeFi tokens hold the record of the most performing digital asset in the market after posting gains well above 100% after massive decline runs.
Looking at the on-chain data, one can attribute the recent surge experienced in the sector to institutional investors’ influx into the industry.
Institutional investors are flocking into the Ethereum based DeFi sector
To further buttress the case of the surge being due to the influx of large scale investors, recent activity in the sector has just captured headlines. An address that is believed to belong to a company with affiliation to Polychain Capital has purchased a massive amount of Yearn.Finance token.
According to analysts, Nansen, the blockchain-based firm in question, is why the YFI token jumped this past week. Its affiliated firm, Polychain Capital, is a crypto fund venture founded by former Coinbase employee Olaf Carlson-Wee.
The transaction that took place saw the company receive close to 140.8 YFI yesterday morning, worth $2.1 million when the transaction was made. The transaction was said to have originated from a wallet on Binance, a renowned exchange that has offered support for the YFI token since it came into the market.
Also read:Presently, Binance offers one of the best liquidity markets when it comes to the native token of Yearn.Finance, YFI. The new purchase is coming off the back of a previous investment made by the firm last three weeks.
YFI experiences massive growth in the last 24 hours
Alex Svanevik, the CEO of Nansen, announced that the firm purchased 329 YFI tokens, which was worth $4.6 million at the purchase time. Nansen is a funds management firm that uses various propriety measures to figure out how different tokens in the Ethereum ecosystem interact with funds, firms, and individuals in the DeFi sector.
What is unclear now is if this transaction was made by Polychain Capital and the total amount that was paid for the YFI tokens. The firm has been on the lookout for users who wished to short sell their YFI holdings.
Other proofs have shown that institutional investors have now entered the DeFi market, hence the whole sector’s surge experienced. After Nansen made the transaction, there were reports that its trading sector, Jump Trading, made an investment of around $4 million into Compound.
Presently, the firm has a holding of $70 million worth of major altcoins in the DeFi sector and $30 million in SERUM token. Yearn.Finance has moved to 32 in the coin market cap standing as the coin has witnessed a growth of close to 23.18% in the last 24 hours.
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