Points
- Crypto whales are positioning for the next altcoin rally through strong buy walls.
- DeFi （Decentralized Finance） loans have increased to levels not seen since 2022.
- Key metrics indicate a revival in DeFi activity.
- Morpho Labs secures $50 million for on-chain lending.
- Terra blockchain halts operations amid a suspected exploit.
Welcome to Finance Redefined, your weekly dose of essential decentralized finance insights — a newsletter crafted to bring you the most significant developments from the past week.
Whales Positioning for Altcoin Rally
This week brought renewed crypto interest from large holders, or whales, who are positioning themselves for the next potential altcoin rally through “strong buy walls” for future altcoin demand.
CryptoQuant Founder’s Analysis
CryptoQuant founder Ki Young Ju believes that crypto whales are positioning themselves in anticipation of the next altcoin rally as traders hotly debate when altseason will begin.
Ju’s analysis centered around the one-year cumulative buy/sell quote volume difference for altcoins, a metric that measures the differential between buy and sell limit orders using a one-year timespan.
The analyst explained that whales prefer limit orders to avoid slippage, and the rising level of the metric suggests an increasing number of buy-limit orders among large crypto investors and institutions, representing “strong buy walls” of future demand for altcoins.
DeFi Revival: Active Loans and TVL
The decentralized finance （DeFi） space is also experiencing a revival, as active DeFi loans have risen to above $13.3 billion, a level not seen since 2022.
Crypto market analytics platform Token Terminal proclaimed that “DeFi is waking up again” in a July 31 post on X.
It backed up this claim with charts and statistics, one of which was for active loans, which have returned to levels not seen since early 2022, at around $13.3 billion.
Morpho Labs Secures Funding
Decentralized finance protocol Morpho Labs has raised $50 million in funding following a recent revamp of its business.
The round was led by Ribbit Capital with participation from a16z Crypto, Coinbase Ventures, Variant, Pantera Capital, Kraken Ventures, and other investors. Morpho Labs had previously raised $23.6 million across multiple funding rounds, including an $18 million Series B funding round from a16z and Variant in 2022.
The funds will be used to support the recently launched Morpho Blue, a permissionless lending protocol that allows entities to create and manage their own markets without needing prior approval from any central authority. The solution also offers vaults that can be tailored with specific risk management parameters.
Terra Blockchain Halts Operations
The Terra blockchain has announced that it will be temporarily halted at block height 11430400, and user transactions will no longer be processed during the downtime.
According to Terra’s official X post, the team will work with Terra （Phoenix-1） validators to apply an emergency patch after the suspension to “remediate a suspected exploit.”
An X post by Cyvers Alerts revealed that the exploit resulted in the theft of approximately 60 million Astroport （ASTRO） tokens, 3.5 million USD Coin （USDC） tokens, 500,000 Tether （USDT） tokens, and 2.7 Bitcoin （BTC）.
Overview of DeFi Market
The majority of the 100 largest cryptocurrencies by market cap have ended the week in the red, according to data from Cointelegraph Markets Pro and TradingView.
Out of the top 100, Base-native meme token Brett （BRETT） saw the biggest decline of over 55% on the weekly chart, followed by Solana-based memecoin Dogwifhat （WIF）, which fell over 54%.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights, and education regarding this dynamically advancing space.
解説
-
Whales: Large holders of cryptocurrency who can significantly influence the market with their buying or selling actions.
-
Altcoin Rally: A period when alternative cryptocurrencies （altcoins） experience significant price increases, often following or coinciding with Bitcoin’s price movements.
-
DeFi （Decentralized Finance）: A blockchain-based form of finance that does not rely on central financial intermediaries such as banks. Instead, it uses smart contracts on blockchains.
-
Buy Walls: Large buy orders at a certain price level that can prevent the price from falling
-
Buy Walls: Large buy orders at a certain price level that can prevent the price from falling below that level, creating support for the asset.
-
Active Loans: Loans that are currently in effect and have not yet been repaid. In the context of DeFi, this refers to the total value of loans outstanding on DeFi platforms.
-
Total Value Locked （TVL）: The total value of assets locked in DeFi protocols, serving as a measure of the overall health and usage of the DeFi ecosystem.
-
Permissionless Lending Protocol: A type of lending platform that does not require users to seek permission or approval from a central authority to participate. Users can lend or borrow assets directly on the blockchain.
The resurgence in DeFi activity and the strategic positioning of crypto whales indicate a potential for growth and increased market participation in the coming months. As the DeFi space continues to evolve, understanding these key concepts and market dynamics will be crucial for investors and participants looking to navigate this rapidly changing landscape.