Morpho (MORPHO) Hits All-Time High of $4.2 Amid Rising Inflows Into Its Ecosystem

Morpho (MORPHO) price hit a record high on Wednesday, continuing its strong rally for the third consecutive day. The token surged to a new all-time high of $4.2. At this price, MORPHO has a market valuation of over $702 million and a fully diluted valuation of $4.1 billion.

This rally comes as inflows into the Morpho ecosystem continue to rise sharply. According to data from DefiLlama, the total value locked (TVL) on the platform now stands at $3.85 billion, up significantly from $49.2 million in 2022.

Of the assets locked in the platform, over $2 billion are on the Ethereum (ETH) chain, while the remaining assets are on Base, a layer-2 network launched by Coinbase (NASDAQ:COIN). This strong growth has also made Morpho one of the most profitable protocols in the decentralized finance (DeFi) space.

According to data from TokenTerminal, Morpho generated $87 million in fees over the last 12 months. This places it ahead of other notable DeFi platforms like JustLend and Pendle in terms of profitability.

Morpho price also rose following an announcement by Coinbase that it will begin offering crypto loans to its American customers. This announcement comes after months of anticipation and will allow users to borrow USD Coin (USDC) against their Bitcoin (BTC) holdings on the platform within seconds.

This announcement is significant because Coinbase is the largest cryptocurrency exchange in the United States, with millions of users. The news also drove demand for the Morpho token, with the biggest buyer in the last 24 hours spending $1.84 million on the token.

In total, over 15 users collectively purchased MORPHO tokens worth more than $176,000 in the same period. Morpho price analysis: 4-hour chart

On the 4-hour chart, we can see that the Morpho price has gone parabolic in recent days. This move pushed it above a key resistance level at $3.6850, which marks its highest swing high on 5 January. Breaking above this level invalidated the double-top chart pattern that was forming.

The coin also formed a bullish flag chart pattern and moved above the 50-period moving average on the 4-hour chart. Additionally, it 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.