Traders Shift to Utility Tokens as ADA Plunges 14.3% Amid Market Volatility

Traders are increasingly shifting their focus to utility tokens with robust use cases as Cardano’s (ADA) price plunged 14.3% over the past week, trading near $0.71. Despite a 6.5% rise in total value locked (TVL) to $340.3 million on platforms like Minswap, the token underperformed the broader crypto market, which declined 2.8% as per CoinGecko data [1]. A 24-hour trading volume of $891.44 million indicates heightened selling pressure, attributed to whale movements where 390 million ADA left mid-sized wallets since late July, according to AlvaApp [1].

The sell-off has been attributed to broader macroeconomic concerns, including U.S.-China trade tensions, a weak U.S. jobs report, and potential new tariffs under Trump's proposed policies. Technical analysis shows a bearish MACD, RSI at 43, and key support at $0.69 and resistance at $0.78. While the upcoming Plomin hard fork and $71 million allocated for Hydra upgrades may offer long-term potential, a break below $0.69 could expose ADA to further downward pressure toward $0.65 [1].

Amid this volatility, traders are increasingly favoring utility tokens with clear revenue models. Mutuum Finance (MUTM), an upcoming DeFi platform, has emerged as one such project attracting attention. The platform introduces two lending systems: Peer-to-Contract (P2C) and Peer-to-Peer (P2P), aiming to enhance decentralized lending efficiency. Under the P2C model, users can deposit assets like Bitcoin into pooled contracts and receive interest-bearing mtTokens, generating passive income. For example, a $580,000 BTC deposit could yield an 8% APY or $46,400 annually. These mtTokens can also be staked for additional rewards, with future buybacks funded by platform revenue, reinforcing MUTM’s utility [1].

The P2P system, meanwhile, caters to volatile assets such as memecoins, allowing users to negotiate loan terms based on individual risk profiles. Borrowers can access stablecoins like USDC at up to 70% LTV by collateralizing assets such as ETH or AVAX. For instance, a $20,000 AVAX deposit could yield $14,000 in USDC. This flexibility offers traders an efficient way to manage liquidity without locking assets for long periods [1].

Currently in its Phase 6 presale, Mutuum Finance has raised $14.15 million at $0.035 per token, with only 12% of the total supply sold. The growing community, now over 15,000 holders, signals strong market interest. The upcoming Phase 7 is expected to raise the price to $0.040, offering early investors a final opportunity at a discounted rate before anticipated listing [1].

Security is a key focus for the project, with a full audit by CertiK yielding a Token Scan score of 95 and a Skynet trust score of 78. A $50,000 Bug Bounty program further supports platform integrity. Additionally, a $100,000 giveaway campaign is rewarding early supporters with $10,000 in tokens each [1].

With the platform preparing for a beta launch and plans for listings on major exchanges such as Binance, Coinbase, and Kraken, Mutuum Finance is positioning itself as a leading utility token with real-world use cases. An investor who entered the presale at $0.01 has already seen a 3.5x return as the price approaches an estimated $0.06 post-listing. A $12,000 investment at the current Phase 6 price of $0.035 could yield $960,000 at a conservative post-listing target of $2 [1].

As the DeFi landscape evolves, the shift from speculative assets like ADA to utility-driven tokens like MUTM highlights a growing demand for sustainable, secure, and scalable solutions. With macroeconomic risks persisting, traders are increasingly prioritizing projects that offer tangible value and real-world utility [1].

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Source: [1] [Traders are diversifying into utility tokens as ADA plunges 14.3% despite strong metrics](https://invezz.com/news/2025/08/09/traders-are-diversifying-into-utility-tokens-as-ada-plunges-14-3-despite-strong-metrics/)