Mantra Price Falls as OM Token Staking Yield Rises to 21.1%

The price of Mantra has changed dramatically, declining for three days in a row and entering a technical correction phase.

At the time of writing, Mantra (OM) is trading at $1.2458, down 11% from its highest point this month. However, despite the pullback, it is still one of the most effective cryptocurrencies Its shares have jumped more than 4,000% this year, boosting its market capitalization to more than $1 billion.

OM open interest slips

Mantra’s decline came amid low volume. Data shows 24-hour trading volume on Wednesday was more than $26 million, down from $121 million on July 17 and $304 million on July 12.

Additional data shows that Mantra’s open interest in the futures market has continued to fall in recent days. It peaked at $59 million on July 12 and has fallen to more than $34 million.

Open interest is an important aspect in the futures market because it shows the volume of unfilled orders. In most periods, a large increase in open interest is seen as a positive development for the asset.

Thus, the OM token likely fell as investors took profits as it is one of the best performing tokens in the industry as it has risen nearly 5000% this year.

It also fell as cryptocurrencies showed signs of losing momentum after SEC Approves 9-Point Ethereum ETFs. Bitcoin remained below $67,000, and Ethereum fell below $3,500. The total market capitalization of all cryptocurrencies fell to $2.4 trillion.

Demand for tokenization is growing

Mantra’s downfall comes at a good time for the tokenization industry. Recent data shows that Blackrock’s BUIDL product has generated more than $500 million in assets.

On Tuesday, Hamilton Lane, a company with more than $900 billion in assets, launched a tokenized fund on Solana. Additionally, Ondo Finance, a company that manages tokenized funds for USDY and OUSG, added more than $578 million in assets. Goldman Sachs plans to launch three tokenized projects this year.

These developments mean there is demand for tokenization, a move that will benefit Mantra, a company that connects traditional assets to the blockchain. A few weeks ago, Mantra reached an agreement with a leading Dubai real estate company that will use its technology to tokenize its properties.

Analysts believe that tokenization could be a big deal because it will allow users to turn illiquid assets, such as real estate, into tokens. It will also be used by banks and financial services companies. Franklin Templeton, a company with more than $1.65 trillion in assets, has already launched the Franklin OnChain US Government Money Fund, a tokenized fund using the Stellar blockchain.

Mantra Staking Profitability Grows

Mantra Net Betting Inflow

Meanwhile, Mantra is accumulating more assets in its staking ecosystem. Data StakingRewards shows that its market cap is $1.13 billion, giving it a staking ratio of 49.97%. For comparison, Ethereum (ETH) has a staking ratio of 27%, and Toncoin (TON) has a staking ratio of 24%.

Data shows that OM has one of the highest staking yields in the industry. Its staking yield has grown to 21.17%, which is higher than popular cryptocurrencies such as Solana (SOL), Polkadot, and Cosmos. Its net staking flow has been positive, with inflows increasing in recent consecutive days.

This staking yield means that $10,000 in Mantra would yield $2,117 in the first year and $21,173 over a decade, all factors held constant.

Mantra has robust tokenomics

Mantra has become a popular cryptocurrency among stakers because of its tokenomics. Unlike other cryptocurrencies that have huge unlocked tokens, Mantra has completed the unlocking of its tokens.

CoinGecko data shows that Mantra has a circulating supply of over 831 million, while the total supply is 888 million, according to the data. CoinGecko.

Cryptocurrencies with unlocked tokens like Pendle, Decentraland, Arbitrum, and Sandbox are usually heavily diluted, as some of the new tokens tend to dilute existing holders. This is unlikely to happen with Mantra.

Mantra Price Forecast

OM chart from TradingView

The daily chart shows that the OM token price has seen impressive gains this year, rising from $0.02 in January to an all-time high of $1.40. The token recently crossed a crucial resistance point at $1.10, hitting its highest swing on June 10. By moving above that level, it invalidated the emerging double top pattern.

The Mantra token remained above the 50-day and 100-day moving averages, which is a positive sign. However, most oscillators such as the relative strength index (RSI) and MACD are all pointing down.

The token has dropped below the second Woodie pivot resistance. It has also formed three dark crows. Thus, the Mantra token price is likely to continue falling and then retest the key support at $1.10. This will be a breakout and retest pattern, which is a sign of bullish continuation.

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