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Why are NEAR, Virtuals, and Morpho surging?

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Why are NEAR, Virtuals, and Morpho surging?

NEAR Protocol, Virtuals, and Morpho crypto stood as some of the best performers on Tuesday amid a broader market rebound back above the $2.4 trillion mark.

Summary

  • NEAR Protocol, Virtuals and Morpho led altcoin gains with double-digit rallies on Tuesday.
  • NEAR, VIRTUALS benefited from positive developments across the AI sector alongside project-specific catalysts.
  • Morpho rallied following the launch of the OKX Onchain Earn product on the protocol.

According to data from CoinGecko, the global crypto market rose 5% to $2.45 trillion before stabilizing around $2.4 trillion at press time. The market recovery was largely fueled by Bitcoin, the bellwether’s rally on Monday with the flagship crypto jumping from intraday lows near $65,000 to over $69,800 in a matter of hours.

Besides this, investor appetite for risk assets also returned after U.S. manufacturing data exceeded market expectations, fueling optimism surrounding Fed rate cuts this year.

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The crypto market recovery triggered a short squeeze across major crypto assets. Data from CoinGlass shows nearly $202 million worth of short positions were liquidated in the past 24 hours, out of the total $331 million liquidated from both sides across leveraged markets.

Amidst this volatility, NEAR Protocol, Virtuals, and Morpho emerged as the standout winners. These assets capitalized on the easing market sentiment to post double-digit gains.

NEAR Protocol (NEAR) was the strongest gainer of the day with its 24% rally to a 5-week high of $1.45 on Monday. The surge extended its weekly gains to over 50%.

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The AI token’s gains follow AI chip-making giant Nvidia announcing a multiyear strategic partnership with Coherent Corp, a global leader in photonics and networking, to advance its optical interconnect technology.

As part of the agreement, Nvidia would be investing $2 billion in Coherent to support research and development, along with expanding manufacturing capacity.

NVIDIA shares rose by 2.93% shortly after the announcement, sparking a broader rally in AI-focused cryptocurrencies. The partnership also comes just days after the chip giant revealed bullish quarterly earnings, easing fears of a slowdown in AI spending.

As Nvidia is the market bellwether for artificial intelligence, its bullish earnings and stock rally serve as a major impetus for related assets such as NEAR Protocol.

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Project-specific catalysts, including the launch of Near FM and Near Intents has also supported the recent rally.

Virtuals Protocol 

Virtuals Protocol (VIRTUAL) rose over 15% today to $0.79, its highest price since late January this year. The gains followed after it broke out of a consolidation from the $0.60-$0.75 range it had been stuck within over the past week.

Besides sharing the AI market hype surrounding Nvidia news and its stock gains, the agentic AI coin also benefited from strengthening fundamentals supporting it. 

In a recent X post, the Virtuals Protocol team revealed that agent transactions on the network soared by around 128% over the past two weeks, as 3,421 agents competed in Epoch 2 of its AI revenue incentives program. Agent-to-agent revenue reached $2.8 million during the period, with roughly $200,000 distributed to builders.

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The team also outlined upgrades for Epoch 3 aimed at tightening reward quality and making it materially harder to manufacture artificial signal, with a stronger focus on genuine demand and sustained utility. 

Morpho 

Morpho (MORPHO) rose 11% on the day to $1.97, extending its weekly gains to around 25%.

Morpho’s gains today can be largely attributed to a surge in network activity following the launch of the OKX Onchain Earn product on the Morpho protocol. The event includes a 65 million KAT (Katana Network) reward pool for users staking USDT on the protocol.

At the same time, there’s also noticeable chatter around Apollo Global’s recent commitment to the protocol, which has provided a strong fundamental backstop for the current price action. Under a newly established four-year cooperation agreement, the $940 billion asset manager is authorized to acquire up to 90 million MORPHO tokens, representing roughly 9% of the total supply.

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Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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Crypto World

Oil shock and inflation fears drag down bitcoin :Crypto Daybook Americas

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CoinDesk 20 members’ performance

By Francisco Rodrigues (All times ET unless indicated otherwise)

Bitcoin fell more than 3.5% to below $67,000 as escalating tensions in the Middle East drove investors out of risk assets and into the U.S. dollar.

As the conflict escalates, Iran has threatened to close the Strait of Hormuz, a key shipping lane that carries roughly one-fifth of global oil supply.

Shipping rates for crude and liquefied natural gas tankers surged after vessels were targeted in the region and several operators suspended activity. Brent crude climbed more than 13% in the past five days, while freight costs for large oil tankers reached record levels.

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The shock is hitting financial markets. The dollar index (DXY) is up nearly 1% and U.S. Treasury yields moved higher as investors move away from risk assets, including cryptocurrencies, reflecting expectations that central banks may face renewed inflation pressure from rising fuel costs.

Bitcoin had briefly approached $70,000 earlier in the week but reversed course as the conflict erupted. Cryptocurrency prices have nevertheless remained range-bound despite the escalation.

The initial U.S. strike on Iran over the weekend pushed bitcoin and ether lower, triggering about $300 million in long liquidations, but QCP Capital analysts described the deleveraging as orderly compared with previous episodes earlier this year.

The analysts added that options markets showed a brief spike in short-term volatility, though positioning suggests traders were prepared for weekend risk.

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“If we recall the previous U.S. strike on Iran last June (also a weekend), BTC broke below $100,000 as the news broke only to trade back above on Monday, and subsequently rallied to a high of $123k a few weeks later,” QCP Capital analysts wrote. “While the scale of this attack is far greater than last year’s, price action could be hinting at early signs of history repeating itself.”

Options flows show buyers are positioning themselves for a potential rally beyond the $70,000 mark. That suggests investors are looking for a rebound this month after the market’s severe downturn.

The Strait of Hormuz remains central to the standoff, with conflicting statements from Iranian and U.S. officials over whether the waterway is closed. U.S. President Donald Trump has said the war is expected to last “four to five weeks.” Stay alert!

Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today

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What to Watch

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

  • Crypto
    • March 3: SolCex mobile app to launch on Google Play and Apple’s App Store.
  • Macro
    • March 3, 5:00 a.m.: Eurozone inflation rate YoY flash for February (Prev. 1.7%); Core YoY (Prev. 2.2%)
  • Earnings (Estimates based on FactSet data)
    • March 3: Antalpha Platform Holdings (ANTA), pre-market, $0.19

Token Events

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

  • Governance votes & calls
    • ShapeShift DAO is voting to appoint PTT as the Tokenomics Workstream Leader for a 6-month term, compensated entirely in FOX tokens to eliminate stablecoin costs. Voting ends March 3.
    • Decentraland DAO is voting to explore the automatic execution of approved proposals and soft term limits for signer keys while maintaining emergency oversight. Voting ends March 3.
  • Unlocks
  • Token Launches

Conferences

For a more comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead“.

Market Movements

  • BTC is down 3% from 4 p.m. ET Monday at $66,918.56 (24hrs: +0.57%)
  • ETH is down 4.04% at $1,959.34 (24hrs: unchanged)
  • CoinDesk 20 is down 3.45% at 1,927.49 (24hrs: +0.59%)
  • Ether CESR Composite Staking Rate is up 1 bps at 2.86%
  • BTC funding rate is at -0.0009% (-1.0162% annualized) on Binance
CoinDesk 20 members’ performance
  • DXY is up 0.89% at 99.25
  • Gold futures are down 0.30% at $5,278.60
  • Silver futures are down 4.65% at $84.18
  • Nikkei 225 closed down 3.06% at 56,279.05
  • Hang Seng closed down 1.12% at 25,768.08
  • FTSE 100 is down 2.76% at 10,478.54
  • Euro Stoxx 50 is down 3.49% at 5,777.18
  • DJIA closed on Monday down 0.15% at 48,904.78
  • S&P 500 closed unchanged at 6,881.62
  • Nasdaq Composite closed up 0.36% at 22,748.86
  • S&P/TSX Composite closed up 0.59% at 34,541.30
  • S&P 40 Latin America closed down 0.82% at 3,741.78
  • U.S. 10-Year Treasury rate is up 9 bps at 4.05%
  • E-mini S&P 500 futures are down 1.83% at 6,762.25
  • E-mini Nasdaq-100 futures are down 2.30% at 24,448.00
  • E-mini Dow Jones Industrial Average futures are down 1.74% at 48,104.00

Bitcoin Stats

  • BTC Dominance: 58.81%
  • Ether to bitcoin ratio: 0.029284
  • Hashrate (seven-day moving average): 977 EH/s
  • Hashprice (spot): $29.14
  • Total Fees: 2.65 BTC / $179,647
  • CME Futures Open Interest: 104,220 BTC
  • BTC priced in gold: 15.8 oz
  • BTC vs gold market cap: 4.46%

Technical Analysis

TA for March 3
  • BTC/USD weekly remains technically constrained below the 200-week EMA, with a weekly relative strength index (RSI) of 27.89 and a lack of bullish divergence confirming a sideways grind between $65,000 and $70,000.

Crypto Equities

  • Coinbase Global (COIN): closed on Monday at $185.24 (+5.34%), –5.64% at $174.80 in pre-market
  • Galaxy Digital (GLXY): closed at $21.73 (+5.54%), –5.66% at $20.50
  • MARA Holdings (MARA): closed at $9.45 (+5.70%), –4.97% at $8.98
  • Riot Platforms (RIOT): closed at $16.43 (+0.86%), –5.11% at $15.59
  • Core Scientific (CORZ): closed at $16.49 (–2.83%), –3.76% at $15.87
  • CleanSpark (CLSK): closed at $10.55 (+6.03%), –4.83% at $10.04
  • Exodus Movement (EXOD): closed at $10.47 (+2.65%)
  • CoinShares Bitcoin Mining ETF (WGMI): closed at $40.43 (+1.38%), –4.23% at $38.72
  • Circle Internet Group (CRCL): closed at $96.14 (+15.22%), –6.57% at $89.82
  • Bullish (BLSH): closed at $33.81 (+7.71%), –2.69% at $32.90

Crypto Treasury Companies

  • Strategy (MSTR): closed at $137.65 (+6.29%), –4.42% at $131.56
  • Strive Asset Management (ASST): closed at $8.73 (+9.95%), –4.24% at $8.36
  • Sharplink (SBET): closed at $7.39 (+8.36%), –5.41% at $6.99
  • Upexi (UPXI): closed at $0.88 (+32.73%)
  • Lite Strategy (LITS): closed at $1.12 (–0.88%)

ETF Flows

Spot BTC ETFs

  • Daily net flow: $458.2 million
  • Cumulative net flows: $55.24 billion
  • Total BTC holdings ~ 1.27 million

Spot ETH ETFs

  • Daily net flow: $38.7 million
  • Cumulative net flows: $11.67 billion
  • Total ETH holdings ~ 5.67 million

Source: Farside Investors

While You Were Sleeping

Japan prime minister Sanae Takaichi disavows Solana meme coin after it crashes by 75% (CoinDesk): Japan’s prime minister says she has no knowledge of or involvement in a Solana-based meme token that briefly reached a $27.7 million market cap before tumbling.

Iran war live: Israel strikes Tehran and Beirut; drones hit US embassy in Riyadh (Reuters): Explosions tore through Tehran and Beirut and financial markets worldwide crumbled at the prospect of prolonged disruption to global energy supplies from U.S.-Israeli attacks on Iran.

U.S. closes 2 Gulf embassies as Iran steps up retaliation (The New York Times): The U.S. closed its embassies in Saudi Arabia and Kuwait after drone attacks and urged Americans to depart immediately from 14 Middle East countries, as Iran expanded its retaliatory strikes.

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Dow futures fall; oil prices rise (The Wall Street Journal): Futures for the three main U.S. indexes dropped at least 1.4%. Stocks in Europe and Asia skidded, and oil prices rose, as the Middle East conflict showed signs of escalating on its fourth day.

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Sanae Token Hits $27M Before Japan PM Denies Links

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Sanae Token Hits $27M Before Japan PM Denies Links

A cryptocurrency using the name of Japanese Prime Minister Sanae Takaichi briefly surged to a market value of about $27.7 million before sliding sharply after Takaichi publicly denied any connection to the token.

In a statement posted on X, Takaichi said she had no knowledge of the “Sanae Token,” adding that neither she nor her office had granted any approval related to it. She said the clarification was issued to prevent public misunderstanding. 

“Due to the name, it seems there are various misunderstandings, but regarding this token, I have absolutely no knowledge of it, nor has my office been informed about what this token entails,” she wrote. 

According to crypto data tracker Gmgn, the Solana-based crypto token briefly reached a market capitalization of $27.7 million on Feb. 25. Following Takaichi’s denial, its price and market cap declined sharply. At the time of writing, the token’s market capitalization stood at about $7 million.

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Sanae Token’s price chart. Source: Gmgn

FSA considers investigating the token

Japan’s Financial Services Agency (FSA) is reportedly considering investigating parties involved in the token’s issuance.

According to Kyodo News on Tuesday, the regulator is weighing a probe into related operators to confirm the relevant facts. The FSA has not publicly announced a formal investigation.

Related: Bank of Japan testing blockchain settlement for bank deposits in new sandbox

The report said the company involved may lack the registration required to issue crypto assets in Japan.

Under Japan’s Payment Services Act, crypto asset exchange service providers must register with the FSA. Operating without proper registration can draw regulatory scrutiny, particularly where consumer protection concerns arise.

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Political-name tokens draw scrutiny globally

Tokens referencing public figures have surfaced in multiple jurisdictions during recent speculative market cycles. 

In the US, tokens referencing President Donald Trump have periodically gained traction before the president announced an official token. 

On Jan. 17, 2025, Trump’s team announced the launch of an official Trump memecoin. The token briefly rose to about $73 before declining sharply. At the time of writing, it trades around $3.40, roughly 95% below its peak.

In Argentina, the Solana-based Libra token sparked an international scandal in February 2025 after President Javier Milei promoted it on X shortly after launch.

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On Feb. 18, 2025, the token surged above $4.50 within minutes before crashing below $0.20 within hours, prompting allegations of a pump-and-dump scheme.