Over a 24-hour period, the price of Orca dropped 4.51% to USD 2.73 in the wake of its merger announcement with the lending platform Loopscale. Despite pulling back from recent gains, ORCA held its ground above the USD 2.50 support threshold.
The two entities formally announced the merger on October 7, 2026, U.S. time, bringing their teams together under the name Formation to build out trading, lending, and corporate financing solutions.
Orca Price Pulls Back After Rally
Prior to this downturn, ORCA had enjoyed significant upward momentum. Historical CoinMarketCap market data indicate that the token climbed from roughly USD 2.00 on October 4 up to USD 3.19 by October 6. Following this peak, the price slipped to about USD 2.85 on October 7, eventually hovering near USD 2.73 the following day.
This correction came on the heels of heightened trading activity. CoinGlass analytics revealed that derivatives trading volume surged 239% to reach USD 616 million during the initial surge, while open interest rose to USD 9.86 million as market participants opened new positions.
An increase in outstanding derivatives contracts is what drives higher open interest. Although these figures highlight the preceding rally, the subsequent price update showed ORCA slipping. While trading volume and open interest gauge overall market participation, neither metric alone points to the specific directional bias of traders.
Formation Combines Trading and Lending Services
Formation integrates Orca’s Solana-based exchange infrastructure alongside Loopscale’s lending engine and investment vaults. Leadership for the combined entity will feature Loopscale co-founder Luke Truitt as chief executive, Mary Gooneratne as chief operating officer, and Christopher Montagano managing strategy and legal affairs.
The newly formed enterprise aims to assist companies in minting assets, obtaining financing, and tapping into trading venues. Key target industries include artificial intelligence, energy, robotics, and defense. Furthermore, Formation intends to build pathways to regulated U.S. capital markets as part of its overarching financial strategy.
“Liquidity alone isn’t enough to scale an asset,” Montagano remarked, emphasizing that firms also require credit and distribution—elements the unified platforms intend to deliver together. Orca provides the trading infrastructure, whereas Loopscale contributes its suite of lending and investment utilities.
Public figures from the firms note that Orca has handled upwards of USD 550 billion in trading volume since 2021, and Loopscale has logged over USD 150 million in deposits alongside more than USD 2 billion in facilitated loans. Both protocols will continue to serve as core underpinnings for the ORCA and xORCA token networks.
ORCA Support and Merger Updates Remain in Focus
Market analysis identifies USD 2.50 as a key support floor, with USD 3.90 acting as upside resistance. Trading at USD 2.73, ORCA remained USD 23 cents above the noted support line. Observers suggest that the token’s prospects for resuming its prior upward trajectory depend on sustaining its price above USD 2.50.
According to Loopscale’s merger FAQ, the protocol will not issue a standalone token. Instead, ORCA will act as the native token for the broader Formation ecosystem, and Loopscale points will continue to accrue ahead of a planned conversion later in 2026. Further conversion specifics will be released by the platform, and current user positions will persist without requiring any asset migration.
Looking ahead over the next 12 months, Formation plans to roll out new issuer instruments and investment strategies. The company has partnered with Figure, Shinhan Asset Management, Superstate, R3, and Securitize to introduce market assets and broaden distribution channels. Deployment of these planned offerings remains contingent upon compliance with relevant legal and regulatory frameworks, which may limit availability across various jurisdictions.
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