Moonwell price continued its strong surge, reaching its highest level since 2022 as its ecosystem growth accelerated. It soared to a high of $0.1085, bringing its market cap to over $293 million. WELL has jumped by over 2,000% from its lowest point this year.
Growing DeFi platform
Moonwell, a blockchain network launched in 2022 on the Polkadot ecosystem, has continued to do well this year after expanding to other chains. It moved to Base, which has now become its biggest network, Optimism, Moonbeam, and Moonriver.
According to its website, the network has accumulated over $683 million in assets. The total supplied market value has jumped to $473 million, while the borrow value has soared to $209 million.
Additional data shows that Moonwell’s flagship vaults have accumulated over $100 million in assets. These vaults are mostly made up of Ethereum, USD Coin, and EURC, and they have a deposit APY of 11.3%, 13.7%, and 22.8%, respectively.
Moonwell token also jumped as the WELL token holders continued voting on a new proposal that will reduce the safety module cooldown period to 7 days from the previous 10 days. Most members, or 96.4% of them, have voted in favor of the proposal.
Moonwell’s surge also coincided with the strong performance in the crypto industry as Bitcoin jumped to $71,000 for the first time in months. Other cryptocurrencies like Ethereum and Solana also soared, with the crypto fear and greed index rose to the greed area of 61.
Moonwell’s challenge is that the network is not generating substantial sums of money in fees. It made $800k in fees this month, an increase from $702k in the previous month.
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Moonwell price analysis
The daily chart shows that the WELL token has been in a spectacular bull run in the past few months. It crossed the important resistance point at $0.0723, its highest point in March, and the upper side of the cup and handle pattern.
Moonwell also formed a golden cross pattern, a popular bullish sign, earlier this month. This pattern is characterized by the crossover of the 200-day and 50-day moving averages.
Meanwhile, the Relative Strength Index and the MACD have continued rising. Therefore, the path of the least resistance for the Moonwell price is bullish, with the next point to watch being at $0.15. However, before this happens, the token will likely retreat and retest the key support point at $0.072.
