Traders are diversifying into utility tokens as ADA plunges 14.3% despite strong metrics

Despite Cardano (ADA)’s (ADA) strong decentralized finance (DeFi) infrastructure, the token recently suffered a sharp decline of 14.3%, highlighting that even well-established ecosystems are not immune to market volatility. This downturn has pushed many traders to rethink their portfolios, turning their attention toward utility tokens with tangible and sustainable revenue models. Among these emerging projects gaining traction is Mutuum Finance (MUTM) , an upcoming DeFi platform that aims to revolutionize decentralized lending through its innovative dual lending engines: Peer-to-Contract (P2C) and Peer-to-Peer (P2P) systems. Cardano (ADA) plunges 14.3% amid market sell-off Cardano (ADA) dropped 14.3% over the past week, trading at ~$0.71, underperforming the global crypto market’s 2.8% decline, per CoinGecko data. The plunge, with a 24-hour trading volume of $891.44 million, follows a broader market sell-off triggered by macroeconomic fears, including U.S.-China trade tensions, a weak U.S. jobs report, and Trump’s proposed 25% tariffs. Despite a 6.5% TVL increase to $340.3 million, driven by DeFi growth in protocols like Minswap, ADA faces pressure from whale sell-offs, with 390 million ADA leaving mid-sized wallets since late July, per AlvaApp on X. Technical indicators show a bearish MACD and RSI at 43, with support at $0.69 and resistance at $0.78. The Plomin hard fork and $71 million treasury allocation for Hydra upgrades offer long-term potential, but a drop below $0.69 could test $0.65. Mutuum Finance (MUTM) Mutuum Finance (MUTM)’s P2C model provides an efficient way for users to lend assets such as Bitcoin (BTC) into pooled contracts and receive interest-bearing tokens called mtTokens in 1:1. These mtTokens not only generate passive income but also serve as collateral within the ecosystem. For instance, a user depositing 5 BTC — valued at around $580,000 — could earn an 8% annual percentage yield (APY), amounting to $46,400 in earnings each year. Beyond this, these mtTokens will also be eligible for staking in the smart contracts, enabling users to receive additional rewards through future buybacks of MUTM tokens. These buybacks are planned to be funded by the platform’s revenue streams, creating a sustainable cycle of demand and utility for the MUTM token. On the borrowing side, Mutuum Finance (MUTM) will offer a practical solution for users who want to unlock liquidity from their crypto holdings. Borrowers can use assets such as Ethereum (ETH) or Avalanche (AVAX) as collateral and access stablecoins like USDC at a loan-to-value (LTV) ratio of up to 70%. For example, depositing $20,000 worth of AVAX could allow borrowing $14,000 in USDC. What sets this system apart is its flexibility: borrowers repay only the interest accrued on active loan days, making borrowing costs more efficient and tailored to individual usage. Complementing the P2C system is Mutuum Finance (MUTM)’s P2P lending model, designed specifically for the fast-paced world of memecoins such as PEPE, TRUMP, and SHIB. Unlike traditional pooled lending, P2P loans will be individually negotiated, offering users the freedom to agree on flexible terms that reflect the unique risk and reward profile of these volatile assets. This structure provides a niche avenue for traders seeking high-risk, high-reward opportunities within a secure DeFi environment. Presale success and growing momentum fueling MUTM’s upside Currently in its Phase 6 presale, Mutuum Finance (MUTM) has already raised approximately $14.15 million with the token priced attractively at $0.035. Despite only 12% of the total supply being sold so far, the community is growing rapidly, with more than 15,000 holders already onboard. This limited supply, combined with strong interest, is driving anticipation for the upcoming Phase 7 price increase, which is expected to raise the token price by 15% to $0.040. This presents a final opportunity for investors to secure MUTM tokens at a discounted rate before demand intensifies. Security remains a top priority for Mutuum Finance (MUTM). The project underwent a thorough audit by CertiK, achieving an impressive Token Scan score of 95 and a Skynet trust score of 78 To further reinforce security, a $50,000 Bug Bounty program has been established, rewarding up to $2,000 for critical vulnerability discoveries. Alongside this, Mutuum Finance (MUTM) is conducting a $100,000 giveaway campaign , rewarding 10 early supporters with $10,000 worth of tokens each, adding another incentive for community engagement. Looking ahead, the imminent beta launch will allow users to interact directly with the platform’s features, offering a real hands-on experience that will drive token demand and adoption. Additionally, Mutuum Finance (MUTM) plans to list on several major exchanges, including Binance, Coinbase, and Kraken, vastly increasing visibility and accessibility to a global audience. These developments are expected to accelerate the platform’s growth and positively impact the MUTM token price. Conclusion To illustrate the potential, an investor who switched from Cardano (ADA) to Mutuum Finance (MUTM) during the very first presale phase at $0.01 is already sitting on a 3.5x gain as prices move closer to the anticipated listing valuation of $0.06. A $12,000 investment made now in Phase 6 at $0.035 stands to grow significantly as the token value climbs. At a conservative post-listing price target of $2, this holding would be worth $960,000— a remarkable return fueled by Mutuum Finance (MUTM)’s innovative lending protocols, upcoming stablecoin launch, and robust ecosystem expansion. In a market where even strong players like Cardano (ADA) face setbacks, Mutuum Finance (MUTM) is building to present a compelling alternative for traders prioritizing real-world utility, secure technology, and proven growth potential. With its dual lending engines, Layer-2 scalability, and strategic exchange listings on the horizon, MUTM is poised to capture attention as a leading utility token for the next phase of DeFi innovation. For more information about Mutuum Finance (MUTM) visit the links below: Website: https://www.mutuum.com Linktree: https://linktr.ee/mutuumfinance The post Traders are diversifying into utility tokens as ADA plunges 14.3% despite strong metrics appeared first on Invezz

Source: Invezz