Today I’m going to be talking about my favorite project in the borrowing and lending sector and honestly one of my favorite projects in the entirety of crypto right now — and that project is Morpho. I’m laying out my thesis on why I’m so bullish on it, why I believe it’s the best borrowing and lending project, and one of the best DeFi projects alongside its fellow Base project Aerod Drrome.
Morpho is one of the biggest names in the borrowing and lending space. If you look at the top lending protocols in terms of fully diluted valuations, Morpho is sitting in the number two position with 1.83 billion. They raised 69 million from VCs including Coinbase Ventures, Andreessen Horowitz, Panta Capital and many others. The project is on Base, tying perfectly into the Base ecosystem narrative which I’ve already expressed bullish sentiment toward. When it comes to the DEX side I’m bullish on Aerod Drrome — when it comes to lending, Morpho is the one.
If you don’t believe in crypto loans or crypto lending, I highly recommend you experience what the current financial system feels like — how closed off and centralized it is. Crypto loans fix a real gap in the market. I haven’t always been extremely bullish on borrowing and lending protocols because they didn’t have a ton of hype, back when retail was the main driver for coin movements. But now institutions are involved. We’re not relying only on retail to pump bags — institutions can and will do it.
Morpho is currently in a partnership with Coinbase. Coinbase launched their own crypto-backed loans and that was powered by Morpho. Morpho is integrated within Coinbase, literally giving millions of people access to the Morpho loaning system. The user numbers on Coinbase are insane, and Coinbase is basically a new bank. Morpho is the infrastructure behind those loans.
Total deposits on Morpho are above 9 billion and current active loans are above 3 billion — big numbers, backed by big backers.
Now when it comes to making money, Morpho’s chart shows a bullish structure: higher lows, higher highs, exactly what we like to see. The stochastic RSI is relatively low, signaling we’re potentially at a good buy range. My VIP members got into Morpho much lower, so if you want high-quality projects under the radar before the big YouTubers talk about them, you join the group and get a competitive edge instead of following influencers who just lose money for people.
The chart structure is strong. We came down around 1.12, found support, then came down nicely to the 0.5 level on the fibs, forming a higher low — very bullish. It looks like price will head higher. With Morpho being on Coinbase, it’s a no-brainer for a portfolio. The amount of people who will have access to Morpho, who will be using it for loaning — you can’t ignore this project when it comes to DeFi. The current administration is also pro-DeFi, and Morpho for me is one of the best DeFi projects out there.
Looking at comparisons: Morpho is number two in valuations. Aave is number one and was number one last bull run. Last bull run Aave went to almost an 8 billion market cap. Morpho’s current market cap is around 500 million — very far from where Aave went. And that was last cycle. This bull run is going to be even bigger. Maybe Aave hits 10 or 15 billion. The point is: Morpho is still a cheap value-proposition play at around a 578 million market cap when you compare it to where other lending protocols went in previous cycles.
I’m not giving a price prediction of 13.7x — I’m giving price potential. Personally if I saw 5–10x from here, that would be enough to take profits, especially since VIPs bought lower and will be up much more than new buyers.
If you want early calls, check out the VIP group. Crypto is all about being early. The group gets in early on almost every call, with a 24/7 Discord, expert TA, direct chat access, and real-time buy/sell alerts.
Thanks for reading, and I’ll see you in the next one.
$MORPHO #Morpho @Morpho Labs 🦋
