Moonwell DeFi is experiencing significant growth on the Ethereum layer-2 platform Base, with the WELL crypto token’s price increasing by 12% amidst a 120% rise in staking activity. Many are wondering whether the WELL token will reach $0.045.
In the world of decentralized finance (DeFi), transaction fees play a critical role in engaging users. For any platform’s success, maintaining low and stable fees is essential. Since its launch, Base has seen a rapid increase in its total value locked (TVL), currently exceeding $12.4 billion according to L2Beat. Among these platforms, Moonwell stands out as a decentralized money market, similar to Aave, and is becoming increasingly popular as one of the best cryptos to invest in.
Moonwell
WELL Crypto Soars 12%, Breaks Above a Key Liquidation Level
On Sunday, the WELL governance token was among the top performers in the DeFi space. The price surge past $0.028 indicates a break above the previous local resistance level.
Currently, if the upward momentum continues, it may lead to a price increase to approximately $0.035 and potentially the May 2025 highs around $0.045.
Staking Activity Jumps
The increase in staking can be attributed to the MIP-X21 proposal that was implemented in the second quarter of 2025. The number of WELL tokens staked went from 782.6 million to 922.3 million in just over a month. Although the staked amount fell to 845.4 million by the end of May, over 50 million new tokens were added during this period.
The staking activity, on average, increased by 120% across the Optimism and Base platforms.
Impact of MIP-X21
With MIP-X21, interest charged in USDC has been utilized to acquire WELL tokens. This mechanism has prompted automated reserve auctions, allowing the protocol to buy more WELL through interest from borrowers, enhancing staking rewards.
Disclaimer
Crypto investments carry high risks. This article serves only for informational purposes and does not represent investment advice. Potential losses can occur. 99Bitcoins may earn commissions for traffic to suggested operators.
Moonwell is Capital Efficient, Captures 99% of Liquidation Value
Moonwell has established itself as a highly capital-efficient decentralized money market by capturing 99% of the liquidation value in the DeFi space, outperforming traditional rivals like Aave.
