Morpho Price Drops, But Fundamentals Hit Overdrive

Morpho Price Slide vs Massive TVL Surge Raises Questions

The Morpho price may look like it’s drowning on the charts, but the fundamentals are screaming a completely different story. It’s the kind of disconnect that either makes legends… or regret. And right now, the crowd clearly hasn’t done its homework.

1-Minute Clip Explains Why Morpho Finance is Undervalued

In a one-minute clip making the rounds on X, an investor reacted to an last week's old Fox Business interview where the SEC head casually or maybe calculatively said all US markets will be on-chain within two years. That alone should’ve stirred the pot. 

Instead, the video spiraled into a broader rant about Japan’s bond stress, weakening JGBs, and the cooling impact on global liquidity which could actually strengthens Bitcoin’s store-of-value narrative… and when Bitcoin moves, altcoins with real utility usually move harder.

https://x.com/EarlyBlocks/status/1997391845169774952?s=20

That’s where this asset enters the chat. According to the analyst in the clip, it isn’t just undervalued, it’s like mispriced. Not mildly, but Wildly.

Back in Q1 2025, it had about $5B in TVL. Fast forward to today and it’s crossed $10B, doubling in under a year, per tokrn terminal report. Even centralized players are noticing. Coinbase, according to the same investor clip, has been routing major chunks of lendable BTC toward Morpho’s markets. That’s capital rotation from one of the biggest platforms in the space.

The Fundamentals Are Exploding

Token Terminal’s latest on-chain report, which was last edited today confirms the thesis. It’s decentralized lending infrastructure allows permissionless market creation with customizable risk parameters. It’s the kind of design that scales because users choose the risk, not gatekeepers.

The project's utility and demand are evident in the Q3 data alone, which looks remarkably strong and confirms that it is indeed undervalued. For instance, along with growing TVL, Morpho Active loans are surging, and Fees are growing faster than every other metric. Morpho’s Monthly active users have grown from 30K in Q1 to 443,300 in Q4.

And Q4 isn’t even over yet. But metrics are loud and clearly going upwards, but price is not. In fact, MORPHO/USD appears to be targeting a likely support zone near $1.10, a level that triggered sharp reversals in March and June 2025.

Sentiment vs. Reality

The indicators look even more ugly. The RSI is oversold, CMF is below zero, AO, and MACD are swimming in red. But that’s exactly why things get interesting. The crowd is dumping showing risk-off sentiment. 

Meanwhile, Smart money is absorbing and accumulating, indicating a risk-on sentiment; if it were not, it would have already hit new lows by this time, like many others that lacked smart money's support.

If the fundamentals don’t lie, the Morpho price might not stay down much longer because collapses rarely continue when adoption curves look like rocket trajectories.

Disclaimer:

This article is for educational purposes only. Crypto markets are risky. Please do your own research before investing.