Moonwell DeFi: As Staking Surges, Is WELL Crypto Ready to Skyrocket?

There’s a buzz in the DeFi space, and Moonwell is right at the center of it. The Ethereum layer-2 Base is booming, driving WELL crypto prices up by an impressive 12%. So, what’s fueling this surge, and could WELL be on its way to hitting $0.045?

Base Layer-2: Driving Down Fees and Pumping Up Activity

For DeFi enthusiasts, high transaction fees can be a deal-breaker. That’s why Base, an Ethereum layer-2 solution, has rapidly gained traction by offering lower and more predictable fees. It’s no wonder the platform’s total value locked (TVL) has ballooned to over $12.4 billion, according to L2Beat.

Moonwell: A Standout Player

Amidst this growth, Moonwell, a decentralized money market akin to Aave, is making a name for itself. It’s not just any crypto; it’s being touted as one of the best to buy right now.

WELL Crypto Breaks Key Levels

Recently, WELL3, the governance token for Moonwell, has been on a tear. The token surged by nearly 12%, breaking past a crucial resistance level at $0.028. With this momentum, some speculate it could rally to $0.035 and even match its May 2025 highs of around $0.045.

Staking Activity: The Catalyst Behind WELL’s Surge

One of the driving forces behind WELL’s price spike is the rise in staking activity. Thanks to the implementation of the MIP-X21 proposal in Q2 2025, staking has shot up by 120%. This surge is due to a change in Moonwell’s reserve factors, redirecting borrowing interest into reserves. As a result, more WELL tokens have been accrued, boosting rewards for stakers.

The Impact of MIP-X21

MIP-X21 has created a virtuous cycle: increased borrowing activity generates larger reserves, leading to more auctions and, consequently, higher rewards for stakers. Last month alone, Moonwell acquired 8.4 million WELL through reserve auctions.

Moonwell’s Capital Efficiency

Moonwell isn’t just riding high on staking success; it’s also proving to be one of the most capital-efficient decentralized money markets. The protocol captures a whopping 99% of liquidation value, thanks in part to an innovative MEV tax introduced in February 2025. This ensures minimal value leakage during liquidations, strengthening Moonwell’s business model.

Conclusion: Is WELL Crypto Set to Explode?

With its recent performance and strategic improvements, Moonwell is certainly in the spotlight. The surge in staking activity and its capital efficiency are key factors that could propel WELL to new heights. As we watch this space, the question remains: will WELL crypto roar to $0.045?

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