Mantra’s total value locked (TVL) has experienced a remarkable 500% increase within just two days, following a dramatic 93% price drop in its OM token. The sudden surge in TVL, which reached 4.21 million OM (approximately $3.24 million), comes as investors rushed to purchase OM tokens at discounted prices and stake them for potential rewards.
According to DeFillama data, the TVL spike occurred as market conditions became chaotic, with OM’s price dropping to new lows over the weekend due to “reckless forced liquidations” triggered by centralized exchanges. Following the downturn, analysts noted a significant uptick in buying activity, as investors seized the opportunity to acquire OM tokens at a steep discount.
Crypto analyst Dom pointed out that more than $35 million worth of OM tokens were purchased during the price drop, suggesting strategic accumulation by whales or opportunistic traders. The surge in TVL indicates a strong increase in user engagement with the Mantra protocol, especially in activities like staking and liquidity provision.
A large portion of the TVL increase, about 97%, came through Mantra Swap, the protocol’s decentralized exchange. The automated market-making pools locked in 4.11 million OM tokens over just two days, driving the protocol’s overall TVL rise.
Despite the rapid TVL growth and a price recovery of around 170%, some analysts remain cautious. The protocol’s current fully diluted valuation (FDV) stands at $1.88 billion, far exceeding its real TVL. This indicates a low capital efficiency, with only 0.17% of the FDV actively deployed within the ecosystem, raising concerns about potential overvaluation and sustainability.
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