The last couple of weeks have been in Bitcoin's realm relatively level as the price has stayed within the range of $38,000 to $41,500 for the most part. I always get a little hesitant when Bitcoin stagnates because of the weight it has on the crypto world. However, this has not affected the yield of my DAI stablecoins at all! Going back to roughly the 26th of July DAI has yielded a beautiful 11%+ which is double what it had been at for the last couple of months prior. While volatility has been really really beneficial for stablecoins seeing DAI maintain its high yield was a little shocking to see!
What has changed though that has helped keep the value up? The last few days in particular it has been Ethereum. With the successful launch of the London Hardfork Ethereum has taken off and the value is booming. Since the 26th Ether is up a whopping 27% and has not shown signs of going down. With the gas fees hopefully better controlled the Network (fingers crossed) will not be as crazy bad as it was beforehand. This is a huge boost to stablecoins as a bunch of them operate on the Ethereum Network so being able to move them at reasonable costs is huge.
Adding to it the number two crypto making the moves that it is this has really done a great job at providing a nice floor for the yield. With the way Harvest also operates with the COMP and IDLE they earn these prices have also been going up so more $$$ or DAI is hitting a farmers account! I have slowly been moving more and more of my money out of my savings account and into Harvest and DeFi in general because of how much better the rates are. This is definitely not something that is for everyone and I would always tell you to do what you are most comfortable with and I have built up the trust in the platform to do so.
My bank was paying an "amazing" yield of 0.5% while on Harvest I'm making over 10% in DAI with an additional 1% in FARM rewards. That is why for me being a single guy in my 20's I was able to take more of a risk. When the yields retreated down to under 7% I was starting to get pretty nervous but luckily the market has recovered. This really has shown me looking over the charts that while Bitcoin is huge for stablecoin yield Ethereum is also a big player in keeping up the yields. I cannot wait for Bitcoin to knock back down the door at $45,000 and see how that affects the yield!
