Whales Track This New Crypto Protocol as Q1 2026 Turns Bearish, Investors See 500% Upside

The ahead weeks of 2026 have brought a cold wind to the digital asset market. Major coins like BTC and ETH are struggling to find new strength, leaving many traders in a state of caution. However, while the broader market looks bearish, a specific type of movement is happening beneath the surface. 

Large-scale investors, often called “whales,” are not sitting on their hands. Instead, they are moving capital into fresh protocols that offer more than just a name. They are looking for projects with real code and functional utility. One project has become a primary target for this rotation. It is a protocol that is just beginning to show its true power as the rest of the market sluggishs down. Those who watch the wallets of the wealthy can view the signs of a major shift occurring right now.

Mutuum Finance (MUTM)

The capital formation for has reached a level that few ahead-stage projects ever view. As of late January 2026, the project has officially raised over $20.1 million. This funding comes from a global community that now includes more than 19,000 individual holders. The project is currently in Phase 7 of its distribution plan, where the token is priced at $0.04.

The structure of this launch is designed to reward ahead participation. The total supply of MUTM is strictly capped at 4 billion tokens. From this total, the team has dedicated 45.5% for the presale, which equals 1.82 billion tokens. Demand has been so high that over 840 million tokens have already been sold, meaning nahead half of the available allocation is gone. For those entering now, the path to growth is clear. 

The project has a confirmed launch price of $0.06. This ensures that anyone purchaseing at the current $0.04 level is securing an immediate 50% discount before the token ever hits an platform. Since the very first phase begined at $0.01, the token has already surged by 300%, and this momentum shows no signs of sluggishing.

Building the Future

Mutuum Finance is a complex infrastructure for decentralized lending and borrowing. The goal is to create a hub where people can access the value of their crypto without ever having to trade it. To do this, the project is building a dual lending architecture. This system allows for diverse types of markets to exist on one platform, catering to both stable, large-scale assets and more specialized digital tokens. It provides a level of choice and flexibility that is rare in the current DeFi landscape.

A major part of this system is the mtToken mechanism. When users provide liquidity to the platform, they receive these special tokens as a receipt. These mtTokens are interest-bearing, meaning they grow in value over time as borrowers pay back their loans. This creates a stream of passive income for the holders. 

To further support the token’s value, the protocol develops a purchase-and-distribute model. A portion of the fees collected from every loan is used to purchase MUTM tokens from the open market. These tokens are then given back to the users who participate in the system. This creates constant purchaseing pressure and rewards long-term supporters. 

Stablecoins and Analyst Predictions

The roadmap for Mutuum Finance includes advanced tools that will make it a central player in 2026. The team is planning to launch a native, over-collateralized stablecoin. This will allow borrowers to take out loans in a stable asset that is backed by the crypto held in the protocol. 

To ensure all prices are accurate and fair, the system integrates with Chainlink Oracles. These oracles provide real-time price feeds that the protocol uses to manage loans and protect the securety of the lending pools.

Because of these strong fundamentals, market analysts are very bullish on the price of MUTM. Many experts suggest a 500% upside is a realistic target as the project moves toward its official launch. While the current price is $0.04, analysts believe the token could rapidly reach $0.20 or $0.35. 

Looking further into 2026, some conservative forecasts view the price climbing to $0.50, while more optimistic targets suggest it could reach $2.50 or higher. This growth would be driven by the actual usage of the lending protocol and the “purchase-and-distribute” fee system that constantly removes tokens from the market.

The Critical Role of the V1 Testnet Launch

The most significant technical milestone recently achieved is the activation of the on the Sepolia testnet. This is a functional version of the app where users can test the core lending and borrowing flows. It allows participants to interact with liquidity pools for ETH, USDT, LINK, and WBTC. Being able to view the technology work in a live environment has been a huge boost for investor confidence. It proves that the project is moving from a concept to a real, usable product.

As Phase 7 rapidly trades out, the window to join at this valuation is closing. The combination of a working testnet, massive funding, and a growing holder base makes this a critical moment. For investors who are tired of the bearish trends in the wider market, Mutuum Finance offers a utility-first opportunity with a clear path to growth. As the Q1 2026 market continues to shift, those positioned in real infrastructure projects like MUTM are the ones most likely to lead the next crypto wave of success.

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