Mantra’s price has experienced an upward trend for three consecutive days, emerging as one of the few bright spots in the cryptocurrency market as the majority of digital assets witness a downturn. The MANTRA token has climbed to $4, slightly surpassing the lowest level of the week and propelling its market capitalization to over $3.8 billion.
This price surge has occurred in tandem with a significant reduction in the staking yield, which has plummeted to 15.4%, representing a decline of more than 12% within the past 24 hours, according to StakingRewards. Interestingly, this decrease in yield has taken place despite a 5% increase in the staking market capitalization, which now stands at $2.4 billion.
Nevertheless, Mantra continues to offer some of the most lucrative staking rewards in the highly competitive crypto industry. In comparison, Polygon yields a mere 5.6%, while Ethereum (ETH) and Solana (SOL) offer staking yields of 3.2% and 6% respectively.
The process of staking involves delegating tokens to bolster the security of a network, with the yields typically sourced from the fees generated by the network and distributed on a monthly basis. Mantra’s substantial staking yield has been a key factor in its remarkable performance this year, with its price skyrocketing by over 7,200% from its nadir.
The recent rally has been further intensified by the network’s introduction of MantraChain, a layer-1 network designed specifically for the development of Real World Asset tokenization products. MantraChain aspires to establish itself as the premier blockchain platform for developers operating within the rapidly expanding tokenization sector.
As per the claims of its developers, the chain tackles the long-standing blockchain trilemma of decentralization, security, and scalability by leveraging Cosmos SDK, one of the most widely utilized frameworks in the cryptocurrency space.
The tokenization industry has witnessed exponential growth in recent years. For instance, Ondo Finance (ONDO), a prominent tokenization project, has amassed over $600 million in assets. Additionally, other tokenized assets such as BlackRock’s BUIDL and Franklin Templeton’s FOBXX have combined to hold a total of over $1 billion in assets.
From a technical analysis perspective, the daily chart indicates that the OM price has been in a phase of consolidation over the past few weeks following a vertical rally in November. This consolidation period forms an integral part of a bullish pennant chart pattern, a well-known continuation signal. The pattern is characterized by a long vertical line succeeded by a symmetrical triangle. Typically, assets experience powerful breakouts when the triangle nears its confluence point.
Should this pattern hold true, the OM price could potentially rebound and initially ascend to its year-to-date high of $4.5. A breach above this level could pave the way for further upward momentum, potentially driving the price to the next significant psychological milestone of $5. However, a decline below the support level of $3.5 would effectively nullify the bullish outlook and introduce a more bearish scenario.
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