Morpho (MORPHO) traders pulled a record 5.59 million tokens from exchanges in one day, but the supply shift has yet to lift MORPHO from about $1.94.
Key Points:
- Traders withdrew 5.59 million MORPHO, worth about $10.8 million, in the token's largest daily net exchange outflow on record.
- MORPHO remained near $1.94 and was down 0.9% over 24 hours despite the sharp decline in exchange supply.
- Korean demand has faded since July, with the Upbit won pair's share of daily turnover falling to about 0.8%.
MORPHO Outflow Record
Traders moved 5.59 million MORPHO off exchanges in the largest daily net outflow since the token began trading in November 2024, according to Santiment. The withdrawal represented about 0.85% of the 656.33 million tokens in circulation and roughly $10.8 million in value.
The outflow equaled about 94% of MORPHO's daily trading volume, based on CoinGecko data, yet the token was down 0.9% over 24 hours with a market capitalization near $1.28 billion. The move also exceeded the Jul. 25 withdrawal of 4.35 million MORPHO, recorded when Upbit opened trading against the Korean won. Since then, the Upbit won pair's share of daily turnover has fallen from 12.26% to about 0.8%.
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Price Signal
Santiment said the shrinking exchange balance leaves fewer tokens immediately available for sale and reduces the risk of a sudden sell wall. “Exchange supply is thinning fast,” the analytics firm said, but MORPHO's muted response shows that lower available supply has not yet produced stronger buying demand.
That distinction matters because exchange outflows can tighten supply without automatically pushing a token higher.
Robinhood selected Morpho on Jul. 1 to power its Earn product, targeting roughly 7% returns on USDG (USDG) deposits, while Morpho raised $175 million in June in a round led by Paradigm, a16z crypto and Ribbit.
The token has gained 2.1% over the past week but remains down 3.6% over 30 days, leaving the record outflow disconnected from a broader rally. MORPHO also trades about 53% below its January 2025 record high of $4.17, while the July exchange-withdrawal spike failed to produce lasting Korean trading demand.
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