Moonwell, a rapidly growing platform for lending services, has been making waves with a stellar performance in both its lending offerings and token price.
Over the last week, Moonwell’s native token, WELL, has experienced an impressive surge of over 100%, capturing the attention of the cryptocurrency community, as reported by CoinMarketCap.
Assessment of Moonwell’s Price Action and Potential
The current price action of Moonwell is bullish, with the WELL token trading above the $0.05 mark. Since August 20th, the WELL/USDT pair has been climbing steadily, signaling a strong recovery from the market crash lows.
Sustaining this upward momentum, WELL aims to breach and consolidate above the crucial $0.05 level. If successful, this breakthrough could propel the token towards the $0.08 threshold, potentially resulting in gains surpassing 63%.
The increasing market cap of Moonwell indicates a growing interest, with the potential for achieving a new all-time high (ATH) if WELL meets its target.
Technical indicators like the Bollinger Bands suggest heightened momentum, while the MACD, in a bullish crossover, signals substantial volume support for further upward price movement, possibly leading to a breach of the $0.08 mark.
Positive growth metrics from on-chain analytics and stakeholder reports further underpin WELL’s ascent.
Total Value Locked (TVL) and Loan Activity
Moonwell’s transition to the Base blockchain has triggered a surge in Total Value Locked (TVL) and the volume of loans borrowed, indicating heightened user participation.
The current TVL stands at $263.36 million, with $143 million in loans. Moreover, active loans have recorded a 56% monthly growth rate, alongside a 72% increase in TVL, equivalent to an additional $102 million locked.
Data from Token Terminal corroborates this growth trend, emphasizing the increase in fees generated by Moonwell’s protocol as evidence of its sustainable expansion.
WELL Trading Volume and Deposits
The trading volume for WELL has demonstrated a consistent upward trajectory, with a notable 204% surge in the past month, corresponding to roughly $70 million.
Net deposits display a similar uptrend, rising by 63% to reach a total of $229 million. The market cap has also witnessed a 41% increase in the last 30 days, reinforcing Moonwell’s promising growth potential.
For investors eyeing short-term profits and long-term value appreciation, Moonwell’s price action offers a compelling opportunity.
A further boost in Moonwell’s staking rewards and liquidity could be anticipated if Bitcoin and Ethereum sustain their bullish trends, propelling the token’s value upwards.
With a favorable outlook, Moonwell’s WELL token seems poised to continue its upward trajectory, potentially achieving new highs in the upcoming months.