Crypto whales are gearing up for the next “altcoin season,” while DeFi loans are experiencing a resurgence, reaching levels last seen in 2022. 

In this week’s edition of Finance Redefined, we delve into significant developments shaping the decentralized finance (DeFi) landscape. Large crypto holders, or whales, are reportedly preparing for a potential altcoin rally by establishing “strong buy walls” for future altcoin demand.

CryptoQuant founder Ki Young Ju has noted that whales are anticipating the next altcoin rally. His analysis focuses on the one-year cumulative buy/sell quote volume difference for altcoins, a metric that tracks the disparity between buy and sell limit orders over a year. Ju explained, “Whales are preparing for the next altcoin rally,” highlighting that the rising level of this metric indicates an increasing number of buy-limit orders among large investors and institutions, signifying strong future demand for altcoins.

In tandem, the DeFi space is witnessing a revival, with active DeFi loans rising above $13.3 billion, a level not seen since early 2022. According to Token Terminal, “DeFi is waking up again,” as key metrics such as active loans and total value locked (TVL) are on the rise since their recent lows in 2023.

Meanwhile, decentralized finance protocol Morpho Labs has secured $50 million in funding led by Ribbit Capital to support its new Morpho Blue, a permissionless lending protocol. This round included participation from a16z Crypto, Coinbase Ventures, Variant, Pantera Capital, and Kraken Ventures. Morpho Labs had previously raised $23.6 million across multiple funding rounds.

However, not all news is positive. The Terra blockchain announced a temporary halt in operations due to a suspected exploit, resulting in the theft of millions in various cryptocurrencies. Terra aims to apply an emergency patch to resolve the issue.

Additionally, centralized finance (CeFi) entities remain the largest target for cryptocurrency hackers in 2024, with over 70% of hacked funds lost to CeFi, according to Deddy Lavid, CEO of Web3 security firm Cyvers.

As the majority of the top 100 cryptocurrencies by market cap ended the week in the red, the crypto market continues to navigate through volatility, awaiting clearer signals for the next bull run.

Source: Crypto Whales Positioning for Next Altcoin Rally as DeFi Rebounds