Crypto investments continue to rise, with inflows from institutional investors continuing to rise.
The crypto asset got a boost when the US and China partially resolved their trade dispute, increasing appetite for crypto.
According to recent data, the crypto market experienced $7.05 billion in net inflows in May 2025, the highest since December 2024.
Meanwhile crypto assets under management rose to $167 billion.
Why Bitcoin (BTC) inflows are rising
One of the main reasons why Bitcoin is rising amongst institutional investors is the loss of faith in US treasuries. Analysts forecast uncertainty in the equity markets, while Bitcoin is holding strong.
While crypto has experienced net inflows, data shows that equity funds saw net outflows in May 2025.
Meanwhile, gold saw its first outflow in 15 months, pointing to changing portfolio diversification.
According to analysts the inflows will hold steady. They say it is a sign of crypto becoming a permanent fixture in portfolio diversification strategies.
Mutuum Finance (MUTM) poised for explosive gains
Mutuum Finance (MUTM) is a DeFi project that could be on the cusp of great things. It is built as a lending protocol where users can participate as lenders, borrowers, or liquidators.
As lenders, they can deposit assets into the pools for a chance to earn a passive income based on an annualized percentage yield.
The interest rate that lenders earn is determined by the pool utilization rate.
To determine the pool utilization rate, the protocol measures the assets in the pool that are actively borrowed against the total assets in a pool.
When the interest rate rises, it encourages borrowers to pay back their loans. At the same time, it encourages lenders to deposit more assets in the pools to benefit from increasing yields.
These two actions have a two-fold impact. First, they raise the liquidity in the pools, and second, they lower the interest rate as the utilization rate metric changes.
The result is that the protocol achieves optimal capital efficiency overall.
Managing market volatility on Mutuum Finance
On Mutuum Finance (MUTM), serious effort goes into managing on-chain liquidity, and trading volume, which have a huge impact on the price volatility of an asset.
If the protocol has enough liquidity, it ensures that a position can be quickly shut down without massive slippage.
The protocol also used caps, and liquidation requirements to control exposure. For example, if an asset has low liquidity, the protocol may raise incentives to liquidators to maintain coverage.
Price volatility can impact the collateral underpinning the borrow positions.
If market volatility leads to the value of collateral dropping to below what is owned, the solvency of the entire ecosystem could be challenged.
As such, the team has created a framework that maintains the loan-to-value (LTV) ratio at the right level.
Besides the LTV ratio, they use a liquidation threshold, which is at a level that ensures there is enough headroom for a liquidator to make a profit when stabilizing distressed positions.
Assets that are known to be stable like ETH, and stablecoins, will be assigned a high LTV of up 75%, while their liquidation threshold can be set as high as 80%.
For assets that display high levels of volatility, the LTV can be set as low as 40%, while the liquidation threshold is set around 65%.
Using these parameters help to balance the need for diverse asset participation in the protocol against the need to mitigate the impact of sudden price movements that lead to liquidation events.
The protocol also assigns each asset a reserve factor based on its overall stability.
Assets like stablecoin, known for being stable, get a reserve factor of around 10%, while more unstable ones can reach up to 35%.
This design is used to find a balance between protocol health, and broadening market participation.
Details of the presale
The Mutuum Finance (MUTM) presale is currently in phase 5.
So far, over $10.45 million has been raised in the presale. Tokens in the current phase of the presale are going for $0.03, a 200% increase from the phase 1 price of $0.01.
In the upcoming phase 6 of the presale, the token price will rise by 16.67% to $0.035.
In the ongoing phase 5 of the presale, MUTM tokens have seen a massive surge in demand as the crypto market heats up.
So far, over 35% of the tokens set aside for phase 5 of the presale have been sold, barely two weeks after it began.
If you are looking to be part of one of the most exciting crypto projects of 2025, the MUTM token presale is a great place to start.
Not only do you have a chance to make massive returns, you have an opportunity to join one of the future leading platforms in DeFi at the current low price of $0.03.
For more information about Mutuum Finance (MUTM), visit the links below:
Website: https://www.mutuum.com/
Linktree: https://linktr.ee/mutuumfinance
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