Moonwell DeFi Explodes: Staking Up by Over 120%, Will WELL Crypto Token Follow?

Moonwell DeFi on Ethereum layer-2 Base layer-2 is booming. WELL crypto price jumps 12% as staking activity spikes 120%. Will WELL crypto roar to $0.045?

In DeFi, users are sensitive to fees. For activity to thrive, transaction fees must be low, stable, and even lower, regardless of on-chain activity. Since its launch, Base, the Ethereum layer-2, has grown rapidly in total value locked (TVL).

According to L2Beat, the platform now manages over $12.4 billion in assets. Among these, Moonwell, a decentralized money market similar to Aave, is trending for all the right reasons, ranking as one of the best cryptos to buy.

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WELL Crypto Soars 12%, Breaks Above a Key Liquidation Level

On Sunday, WELL3 (No data), the governance token of the DeFi protocol, was among the top performers in the platform and DeFi as a whole.

WELL crypto prices soared by nearly 12%, ending the week on a high note. The surge above $0.028 meant the token broke through last week’s local resistance and the second half of June 2025.

If buyers maintain momentum today, the trend will likely continue, lifting WELL prices to $0.035 and back to May 2025 highs of around $0.045.

Currently, the candlestick arrangement from the daily chart favors buyers. Notably, the close above $0.028 on July 5 confirmed the bullish momentum from June 23.

At this pace, WELL crypto is within a bullish breakout formation above the bull flag, and on the path of becoming the next crypto to explode.

Staking Activity Jumps

Behind this surge are encouraging developments.

After the implementation of the MIP-X21 proposal in Q2 2025, the number of WELL stakers has risen sharply.

As of April 1, 782.6 million WELL had been staked, but this number quickly jumped to 922.3 million WELL by May 10.

Although it fell to 845.4 million WELL by May 31, over 50 million more WELL were staked during this period.

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On average, staking activity spiked by 120% on Optimism and Base.

This increase was driven by a key change to Moonwell’s reserve factors. By default, this mechanism channels borrowing interest into reserves. A portion of the interest earned from borrowers goes into the protocol’s reserve.

Impact of MIP-X21

After MIP-X21, the interest, charged in USDC, was used to accumulate WELL.

As a result, automated reserve auctions allowed the protocol to buy more WELL from a portion of interest payments.

The WELL tokens purchased were used to enhance rewards for its Safety Module, a mechanism designed to secure the protocol.

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