$MORPHO reached a Total Value Locked (TVL) of $11.78 billion, becoming the second largest lender. This development came as most DeFi protocols were struggling following a broader industry disruption caused by the KelpDAO hack.
The hack left Aave Protocol, which DeFi TVL says leads the credit industry, with $200 million in bad debt, while $MORPHO‘s exposure was just $1 million in two isolated markets.
As a result, users began migrating to other protocols such as SparkLend, which they considered more secure. Such observations suggested that $MORPHO could outgrow Aave, although the certainty of when was indefinite.
$MORPHO And $AAVE leading the credit sector
Morpho [$MORPHO] came second, with just under half $AAVE‘s TVL, which was $27 billion.
Are $ETH-denominated TVL tripled year-on-year (year-over-year) to approximately 2.9 million $ETH. This meant that $MORPHOThe company’s dominance in this sector was 16.82%.
In addition, active loans grew to $4 billion, which was about a third of that amount $AAVE at $11.75 billion. The annual cost of the second largest credit protocol was $175 million, a fraction of that $AAVE$938 million.
While $MORPHOAave’s dominance was far below that of Aave [$AAVE]growth indicated a shifting preference due to safety concerns.
Institutional involvement
$MORPHO also began to receive institutional involvement. For example, loans originating from Coinbase totaled $2.17 billion in USDC, half of all active loans.
In addition, Apollo Global, a company with $940 billion in assets under management, announced its support. The partnership aimed to expand credit infrastructure.
In line with that, Apollo Global pledged to acquire 90 million $MORPHO for the next 48 months, directly or through its subsidiaries. This move suggested significant accumulation, putting more capital into the altcoin.
Concept $MORPHOThe upward trend since April
The altcoin has been climbing higher on the charts since the beginning of April. Since then, most DeFi tokens have fallen in value as the hacks occurred in early April. That’s why the altcoin is up 100% year-to-date (YTD).
$MORPHO moved higher above a rising trendline support. The MACD bars showed that selling pressure had almost subsided as the altcoin traded at support.
The altcoin was also in line with $AAVEas indicated by a correlation coefficient (CC) of 0.81.
Staying above the support could push the altcoin back to $2.40 or higher. Conversely, a break below would slow the uptrend as it could indicate a shift in market structure.
All things considered, the altcoin was still far from taking over $AAVE in this sector, but that could change abruptly if this sector continues to face safety problems.
Final summary
- $MORPHO‘s TVL rises to $11.78 billion, becoming the second largest credit protocol.
- $MORPHO Since early April, the price has been on an upward trend, and the charts reflected the strength of the chain.