# Morpho token falls 4% as $175 M funding round announced

**Published:** 2026-07-07T16:07:03.780Z  
**Topic:** Crypto Lending  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/d7faf91e-cd08-4d5d-bf70-afe2602b2e53

Morpho’s $MORPHO token slipped 4% to around $1.90 despite a $175 M raise led by Paradigm, a16z Crypto and Ribbit Capital.

Morpho’s native token dropped 4% in the last 24 hours, hovering near $1.90, even as the protocol announced a $175 million funding round led by Paradigm, a16z Crypto and Ribbit Capital [2].

| At a glance | |
|---|---|
| Token price | ~$1.90 |
| 24‑h change | –4% |
| Funding round | $175 M |
| Lead investors | Paradigm, a16z Crypto, Ribbit Capital |

## Funding boost and market reaction  
Morpho disclosed a $175 million token‑based investment that values the protocol at up to $2 billion [1]. The round was co‑led by Paradigm, a16z Crypto and Ribbit Capital, with participation from Apollo Funds, Circle Ventures, VanEck and others [3]. Investors received MORPHO tokens at the monthly average price, a structure that briefly lifted the token price by more than 10% after the announcement [3]. Despite the capital influx, the token slipped 4% on the day of the news, suggesting short‑term selling pressure outweighed the immediate price impact [2].

## On‑chain activity and competitive positioning  
Morpho’s protocol now locks about $6.6 billion in total value locked (TVL) and holds roughly $10 billion in deposits, positioning it as a challenger to established DeFi lenders such as Aave [1]. The platform’s modular “build‑your‑own” lending model attracts institutional partners, including Coinbase, Kraken and Robinhood, which integrate Morpho’s infrastructure to offer non‑custodial lending products [2][3]. The funding is expected to accelerate decentralisation, deepen commercial integrations and expand the protocol’s credit‑network ambitions [1][3].

## Technical outlook for $MORPHO  
Technical indicators show bearish momentum: the MACD remains in negative territory and the 4‑hour RSI sits at 42, below the neutral 50 level [2]. Immediate support lies at $1.82, with a deeper floor near the June 25 low of $1.57 if the downtrend continues [2]. Conversely, a rebound could target the weekly high of $2.23 [2].

## What to watch  
- $1.82 – near‑term support level; breach could trigger a slide toward $1.57.  
- Upcoming token unlocks or vesting schedules (not detailed in sources) that could add supply pressure.  
- Progress on Morpho’s partnership with payroll platform Deel, starting in Argentina, which may drive token demand if rolled out broadly.  

The price dip underscores that even sizable institutional backing does not guarantee immediate market uplift; the token’s trajectory will hinge on whether Morpho can translate its funding into tangible on‑chain growth and broader adoption.

## Sources
1. Crowdfund Insider — [Morpho Secures $175M to Enable Ethereum and Base powered Open Credit Networks](https://www.crowdfundinsider.com/2026/06/284522-morpho-secures-175m-to-enable-ethereum-and-base-powered-open-credit-networks/)
2. Cryptonews — [Is MORPHO’s 4% slide a buying chance after Morpho’s $175M funding round?](https://cryptonews.net/news/analytics/33105822/)
3. SiliconANGLE — [Decentralized lending protocol Morpho raises $175M to build the world’s biggest open credit network](https://siliconangle.com/2026/06/09/decentralized-lending-protocol-morpho-raises-175m-build-worlds-biggest-open-credit-network/)

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Cite as: TrendWatcher, "Morpho token falls 4% as $175 M funding round announced", https://www.trendwatcher.in/article/d7faf91e-cd08-4d5d-bf70-afe2602b2e53