Treehouse TVL hits $500m triggering 30% TREE price surge

Treehouse’s native token, TREE, recently experienced a significant price swing following a major on-chain milestone. The protocol's Total Value Locked (TVL) surged past $500 million for the first time, triggering a sharp price increase. On Friday, the token rose to a high of $0.6068, a 30% gain from its weekly low, before retreating to $0.5317. This movement reflects growing market confidence in the platform’s capacity to attract liquidity and maintain user engagement [1].

The TVL growth is part of a broader trend. After hitting a low of $175 million in April, the protocol saw a steady inflow of funds, pushing TVL to $500 million. The subsequent pullback to $487 million coincided with a token price retracement, illustrating the correlation between on-chain metrics and market sentiment [1].

Technically, the price movement has formed a classic cup-and-handle pattern. The token bottomed at $0.4695 before rebounding to $0.6068, a level that aligns with the 50% Fibonacci retracement and the July 30 high. The pattern’s depth of 23% suggests a potential upward trajectory, with a projected price target of $0.7500 if the price remains above the key resistance level [1].

Treehouse operates by allowing users to earn fixed income through its Decentralized Offered Rate (DOR), a mechanism designed to mirror traditional interest rate systems in the crypto space. Panelists stake TREE tokens to submit forward rate expectations, which are then used for hedging, derivatives pricing, and portfolio benchmarking. The platform also offers tAssets, which provide yields aligned with on-chain interest rates, currently offering a 3.25% annual percentage yield [1].

The recent listing of TREE on major exchanges like Coinbase and OKX, following a Binance-enabled airdrop, brought increased exposure and liquidity. However, the token faced downward pressure as airdrop recipients sold their allocations. The negative weighted funding rate further signaled bearish sentiment, indicating that investors anticipate lower prices in the near future [1].

Despite the volatility, the 53% surge in 24-hour trading volume to $185 million, which exceeded the token’s $85 million market cap, highlights strong market participation. This data suggests that Treehouse may still be in the early stages of a potential bullish move, driven by both on-chain metrics and evolving market dynamics [1].

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[1] Treehouse crypto price forms bullish pattern after hitting $500m milestone (https://crypto.news/treehouse-crypto-price-forms-bullish-pattern-after-hitting-500m-milestone/)