04-15-2025, 10:10 PM
Red flag? Mantra's TVL jumped 500% as OM price collapsed
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5NDAtNGFiNS03OGZlLTljZjUtMzkyODYwNTYyZTMx.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5NDAtNGFiNS03OGZlLTljZjUtMzkyODYwNTYyZTMx.jpg" alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed"></p><p>The total-value-locked (TVL) on Mantra’s RWA blockchain protocol reached a yearly high despite OM’s 90% price crash.<h2>Mantra TVL surges 500% following OM’s crash</h2><p>As of April 15, Mantra’s TVL (in OM terms) jumped to 4.21 million OM (~$3.24 million), an increase of over 500% from two days prior, according to data resource <a data-ct-non-breakable="null" href="https://defillama.com/chain/mantra?currency=OM&groupBy=cumulative&stables=false&chainTokenPrice=false&chainTokenMcap=false&chainTokenVolume=false&staking=false&vesting=false&doublecounted=false&tvl=true" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/chain/mantra?currency=OM&groupBy=cumulative&stables=false&chainTokenPrice=false&chainTokenMcap=false&chainTokenVolume=false&staking=false&vesting=false&doublecounted=false&tvl=true">DefiLlama</a>.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/0196396a-ce5f-71c2-8661-a3dece05ea99" title=""><figcaption style="text-align: center;"><p><em>Mantra’s cumulative TVL chart. Source: DefiLlama.</em></p></figcaption></figure><p>Interestingly, the TVL rise accompanied a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mantra-price-collapses-by-over-90" rel="" target="_self" text="null" title="https://cointelegraph.com/news/mantra-price-collapses-by-over-90">dramatic collapse in OM prices</a>, which plunged over 90% during the weekend. The Mantra team attributed the sell-off to “reckless forced liquidations” initiated by centralized exchanges.</p><p>A <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter" rel="" target="_self" text="null" title="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter">rising TVL</a> typically indicates that users are locking more tokens into a protocol’s smart contracts via staking, liquidity pools, lending, or farming for yield or network participation. </p><p>Analyst DOM <a data-ct-non-breakable="null" href="https://x.com/traderview2/status/1911912751221403876" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/traderview2/status/1911912751221403876">spotted</a> “aggressive buying” on crypto exchanges during the 90% OM price crash on April 13, amounting to $35 million worth of OM purchases when “the [Mantra] collapse was happening.” </p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a64-72bb-74e2-b95f-1171648a6d19" title=""><figcaption style="text-align: center;"><p><em>Mantra total aggregated spot CVD vs. Binance spot price. Source: DOM</em></p></figcaption></figure><p>Despite the 90% price crash, the simultaneous TVL spike and “aggressive buying” suggest that certain participants saw the collapse as a buying opportunity. </p><p>The fact that millions of dollars were deployed while the crash unfolded points to tactical accumulation, possibly by whales, insiders, or opportunistic speculators betting on a rebound or farming incentives.</p><p>As of April 15, OM’s price was trading for as high as $0.99, up around 170% from the weekend lows.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a6d-3ed1-75b9-84fd-ed1beff829f3" title=""><figcaption style="text-align: center;"><p><em>OM/USDT daily price chart. Source: TradingView</em></p></figcaption></figure><h2>97% of Mantra TVL is one DApp </h2><p>Increases in Mantra’s TVL accompany red flags.</p><p>For instance, around 97% of Mantra’s TVL growth came from Mantra Swap, the protocol’s native decentralized exchange. Its automated market-making pools <a data-ct-non-breakable="null" href="https://defillama.com/protocol/mantra-swap?denomination=USD#information" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/protocol/mantra-swap?denomination=USD#information">accounted</a> for 4.11 million OM in TVL, making it the primary driver behind the sharp uptick.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a10-fc15-7ef3-a0f6-b6196ed8f1ce" title=""><figcaption style="text-align: center;"><p><em>Mantra Swap TVL performance chart. Source: DefiLlama </em></p></figcaption></figure><p>A more decentralized ecosystem would have a greater capital distribution with multiple liquidity sources across lending markets, staking platforms, derivatives, etc. </p><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mantra-speculates-one-exchange-in-particular-caused-token-to-dump" rel="" target="_self" text="null" title="https://cointelegraph.com/news/mantra-speculates-one-exchange-in-particular-caused-token-to-dump"><em><strong>Mantra says one particular exchange may have caused OM collapse</strong></em></a></p><p>Additionally, Mantra’s fully diluted valuation (FDV) of $1.88 billion as of April 15 dwarfs the total value locked (TVL) of $3.24 million, a glaring disconnect that could signal potential overvaluation.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a5b-ec9d-790d-9fc8-820a7dbba366" title=""><figcaption style="text-align: center;"><p><em>Mantra TVL vs. FDV (in dollar terms). Source: DefiLlama</em></p></figcaption></figure><p>With only 0.17% of its theoretical value actively deployed in its ecosystem, the protocol shows low capital efficiency and limited real-world usage. </p><p>This imbalance suggests the market cap is likely driven more by speculation than adoption, and with a large portion of tokens likely still locked, there’s a high risk of future dilution as vested tokens are unlocked.</p><p>Analyst JamesBitunix <a data-ct-non-breakable="null" href="https://x.com/JamesBitunix/status/1912097981609689440" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/JamesBitunix/status/1912097981609689440">posed</a> Mantra’s FDV as a huge risk to OM dip buyers, saying:</p><blockquote>“A lot of traders jumped in at this ‘bottom’ — both on spot and with leverage. Personally, I’d trigger another correction — preferably a sweep of the lows followed by a quick bounce.”</blockquote><p class="post-content__disclaimer" type="">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.</p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template></p>
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https://cointelegraph.com/news/mantra-tv...er_inbound
<p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5NDAtNGFiNS03OGZlLTljZjUtMzkyODYwNTYyZTMx.jpg"></p><p><p style="float:right; margin:0 0 10px 15px; width:240px;"><img src="https://images.cointelegraph.com/images/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjUtMDQvMDE5NjM5NDAtNGFiNS03OGZlLTljZjUtMzkyODYwNTYyZTMx.jpg" alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed"></p><p>The total-value-locked (TVL) on Mantra’s RWA blockchain protocol reached a yearly high despite OM’s 90% price crash.<h2>Mantra TVL surges 500% following OM’s crash</h2><p>As of April 15, Mantra’s TVL (in OM terms) jumped to 4.21 million OM (~$3.24 million), an increase of over 500% from two days prior, according to data resource <a data-ct-non-breakable="null" href="https://defillama.com/chain/mantra?currency=OM&groupBy=cumulative&stables=false&chainTokenPrice=false&chainTokenMcap=false&chainTokenVolume=false&staking=false&vesting=false&doublecounted=false&tvl=true" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/chain/mantra?currency=OM&groupBy=cumulative&stables=false&chainTokenPrice=false&chainTokenMcap=false&chainTokenVolume=false&staking=false&vesting=false&doublecounted=false&tvl=true">DefiLlama</a>.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/0196396a-ce5f-71c2-8661-a3dece05ea99" title=""><figcaption style="text-align: center;"><p><em>Mantra’s cumulative TVL chart. Source: DefiLlama.</em></p></figcaption></figure><p>Interestingly, the TVL rise accompanied a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mantra-price-collapses-by-over-90" rel="" target="_self" text="null" title="https://cointelegraph.com/news/mantra-price-collapses-by-over-90">dramatic collapse in OM prices</a>, which plunged over 90% during the weekend. The Mantra team attributed the sell-off to “reckless forced liquidations” initiated by centralized exchanges.</p><p>A <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter" rel="" target="_self" text="null" title="https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter">rising TVL</a> typically indicates that users are locking more tokens into a protocol’s smart contracts via staking, liquidity pools, lending, or farming for yield or network participation. </p><p>Analyst DOM <a data-ct-non-breakable="null" href="https://x.com/traderview2/status/1911912751221403876" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/traderview2/status/1911912751221403876">spotted</a> “aggressive buying” on crypto exchanges during the 90% OM price crash on April 13, amounting to $35 million worth of OM purchases when “the [Mantra] collapse was happening.” </p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a64-72bb-74e2-b95f-1171648a6d19" title=""><figcaption style="text-align: center;"><p><em>Mantra total aggregated spot CVD vs. Binance spot price. Source: DOM</em></p></figcaption></figure><p>Despite the 90% price crash, the simultaneous TVL spike and “aggressive buying” suggest that certain participants saw the collapse as a buying opportunity. </p><p>The fact that millions of dollars were deployed while the crash unfolded points to tactical accumulation, possibly by whales, insiders, or opportunistic speculators betting on a rebound or farming incentives.</p><p>As of April 15, OM’s price was trading for as high as $0.99, up around 170% from the weekend lows.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a6d-3ed1-75b9-84fd-ed1beff829f3" title=""><figcaption style="text-align: center;"><p><em>OM/USDT daily price chart. Source: TradingView</em></p></figcaption></figure><h2>97% of Mantra TVL is one DApp </h2><p>Increases in Mantra’s TVL accompany red flags.</p><p>For instance, around 97% of Mantra’s TVL growth came from Mantra Swap, the protocol’s native decentralized exchange. Its automated market-making pools <a data-ct-non-breakable="null" href="https://defillama.com/protocol/mantra-swap?denomination=USD#information" rel="nofollow noopener" target="_blank" text="null" title="https://defillama.com/protocol/mantra-swap?denomination=USD#information">accounted</a> for 4.11 million OM in TVL, making it the primary driver behind the sharp uptick.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a10-fc15-7ef3-a0f6-b6196ed8f1ce" title=""><figcaption style="text-align: center;"><p><em>Mantra Swap TVL performance chart. Source: DefiLlama </em></p></figcaption></figure><p>A more decentralized ecosystem would have a greater capital distribution with multiple liquidity sources across lending markets, staking platforms, derivatives, etc. </p><p><em><strong>Related: </strong></em><a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mantra-speculates-one-exchange-in-particular-caused-token-to-dump" rel="" target="_self" text="null" title="https://cointelegraph.com/news/mantra-speculates-one-exchange-in-particular-caused-token-to-dump"><em><strong>Mantra says one particular exchange may have caused OM collapse</strong></em></a></p><p>Additionally, Mantra’s fully diluted valuation (FDV) of $1.88 billion as of April 15 dwarfs the total value locked (TVL) of $3.24 million, a glaring disconnect that could signal potential overvaluation.</p><figure><img alt="Red flag? Mantra's TVL jumped 500% as OM price collapsed" src="https://s3.cointelegraph.com/uploads/2025-04/01963a5b-ec9d-790d-9fc8-820a7dbba366" title=""><figcaption style="text-align: center;"><p><em>Mantra TVL vs. FDV (in dollar terms). Source: DefiLlama</em></p></figcaption></figure><p>With only 0.17% of its theoretical value actively deployed in its ecosystem, the protocol shows low capital efficiency and limited real-world usage. </p><p>This imbalance suggests the market cap is likely driven more by speculation than adoption, and with a large portion of tokens likely still locked, there’s a high risk of future dilution as vested tokens are unlocked.</p><p>Analyst JamesBitunix <a data-ct-non-breakable="null" href="https://x.com/JamesBitunix/status/1912097981609689440" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/JamesBitunix/status/1912097981609689440">posed</a> Mantra’s FDV as a huge risk to OM dip buyers, saying:</p><blockquote>“A lot of traders jumped in at this ‘bottom’ — both on spot and with leverage. Personally, I’d trigger another correction — preferably a sweep of the lows followed by a quick bounce.”</blockquote><p class="post-content__disclaimer" type="">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.</p><template data-name="subscription_form" data-type="markets_outlook" label="Subscription Form: Markets Outlook"></template></p>
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https://cointelegraph.com/news/mantra-tv...er_inbound