Here’s why Morpho price just surged to an all-time high

Morpho price rose for the third consecutive day and hit its all-time high, making it one of the best-performing DeFi tokens this year. 

Morpho (MORPHO) surged to a record high of $4.2, giving it a market valuation of more than $702 million. Its fully diluted valuation climbed to $4.1 billion.

TThis rally occurred amid rising inflows into its ecosystem. Data shows that the total value locked in its platform increased to $3.85 billion, a significant jump from $49.2 million in 2022.

Of its assets, $2 billion are locked in the Ethereum (ETH) chain, while the rest are in Base, the layer-2 network launched by Coinbase. 

This growth trajectory has positioned Morpho as a highly profitable player in the decentralized finance industry. According to TokenTerminal, Morpho generated $87 million in fees over the last 12 months, making it more profitable than notable DeFi platforms like JustLend and Pendle.

Morpho’s price also rose following Coinbase’s announcement that it would begin offering crypto loans for American customers. Users will be able to borrow USD Coin (USDC) against Bitcoin (BTC) on the platform within seconds. This announcement is significant, as Coinbase is the largest exchange in the United States with millions of users.

The news led to increased demand for the Morpho token, as investors anticipate further gains as its technology becomes more mainstream. The biggest buyer in the last 24 hours spent $1.84 million on Morpho tokens. Additionally, over 15 users collectively purchased MORPHO tokens worth more than $176,000 in the same period.

Morpho price analysis

The 4-hour chart shows that the Morpho price has gone parabolic in recent days. This surge pushed it above the key resistance level at $3.6850, which was its highest swing on Jan. 5. Breaking above this level invalidated the double-top chart pattern that had been forming.

Morpho has also formed a bullish flag chart pattern and moved above the 50-period moving average. Additionally, it has reached the overshoot point of the Murrey Math Lines.

While the bullish flag is a positive sign, there is a risk that the coin could pull back and retest the support level at $3.6850. This pattern, known as a break-and-retest, is a popular continuation signal.