A recent trend indicates that significant cryptocurrency holders, known as whales, are preparing for a potential rise in altcoin values. These whales are creating strong buy walls to meet the expected demand for altcoins. Meanwhile, the decentralized finance (DeFi) sector is witnessing a revival, with active DeFi loans surpassing $13.3 billion, a peak unseen since 2022.
What Are Crypto Whales Doing?
Ki Young Ju, founder of CryptoQuant, suggests that crypto whales are positioning themselves ahead of an anticipated altcoin rally. His analysis focuses on the one-year cumulative buy/sell bid volume difference for altcoins, which measures the gap between buy and sell limit orders. This metric shows that whales favor limit orders to prevent slippage, indicating a rise in buy limit orders among large investors and institutions, forming solid buy walls for future altcoin demand.
Furthermore, the increase in this metric suggests that these powerful investors are making strategic moves, utilizing limit orders to sidestep potential market volatility. This behavior underscores their confidence in the imminent growth of the altcoin market.
How Is Morpho Labs Innovating?
Morpho Labs, a decentralized finance protocol, has secured $50 million in a recent funding round led by Ribbit Capital, with contributions from a16z Crypto, Coinbase Ventures, Variant, Pantera Capital, and Kraken Ventures. This funding will support their new permissionless lending protocol, Morpho Blue, which empowers organizations to create and manage markets autonomously. Morpho Labs had previously raised $23.6 million in multiple rounds, including an $18 million Series B led by a16z and Variant in 2022.
The newly acquired funds will be allocated to enhancing Morpho Blue, which offers customizable vaults with specific risk management parameters. This step signifies a major advancement in their operational framework and aims to bolster their market position.
Which Memecoin Projects Are Declining?
TradingView data reveals that most of the top 100 cryptocurrencies by market cap experienced significant declines last week. Notably, the Layer-2 network Base’s memecoin Brett (BRETT) saw the largest decline, dropping over 55%, followed by Dogwifhat (WIF) on the Solana network, which fell by over 54%.
The decline in these memecoin projects highlights the volatility and risk associated with such investments, emphasizing the importance of strategic positioning by larger investors.
Investor Insights
– Whales are employing limit orders to build strong buy walls, suggesting they foresee significant demand for altcoins.
– Morpho Labs’ $50 million funding will enhance its permissionless lending protocol, offering customizable risk management options.
– Significant declines in memecoin projects underline the volatility in the crypto market.
These developments reflect a dynamic and evolving cryptocurrency landscape, where strategic positioning and innovative protocols play crucial roles in shaping market movements.