{"id":127228,"date":"2025-04-15T18:17:03","date_gmt":"2025-04-15T18:17:03","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127228"},"modified":"2025-04-15T18:17:03","modified_gmt":"2025-04-15T18:17:03","slug":"red-flag-mantras-tvl-jumped-500-as-om-price-collapsed","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127228","title":{"rendered":"Red flag? Mantra&#039;s TVL jumped 500% as OM price collapsed"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsThe total-value-locked (TVL) on Mantra\u2019s RWA blockchain protocol reached a yearly high despite OM\u2019s 90% price crash.<br \/>\nMantra TVL surges 500% following OM\u2019s crash<br \/>\nAs of April 15, Mantra\u2019s 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 DefiLlama.<br \/>\nMantra\u2019s cumulative TVL chart. Source: DefiLlama.Interestingly, the TVL rise accompanied a dramatic collapse in OM prices, which plunged over 90% during the weekend. The Mantra team attributed the sell-off to \u201creckless forced liquidations\u201d initiated by centralized exchanges.<br \/>\nA rising TVL typically indicates that users are locking more tokens into a protocol\u2019s smart contracts via staking, liquidity pools, lending, or farming for yield or network participation.<br \/>\nAnalyst DOM spotted \u201caggressive buying\u201d on crypto exchanges during the 90% OM price crash on April 13, amounting to $35 million worth of OM purchases when \u201cthe [Mantra] collapse was happening.\u201d<br \/>\nMantra total aggregated spot CVD vs. Binance spot price. Source: DOMDespite the 90% price crash, the simultaneous TVL spike and \u201caggressive buying\u201d suggest that certain participants saw the collapse as a buying opportunity.<br \/>\nThe 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.<br \/>\nAs of April 15, OM\u2019s price was trading for as high as $0.99, up around 170% from the weekend lows.<br \/>\nOM\/USDT daily price chart. Source: TradingView97% of Mantra TVL is one DApp<br \/>\nIncreases in Mantra\u2019s TVL accompany red flags.<br \/>\nFor instance, around 97% of Mantra\u2019s TVL growth came from Mantra Swap, the protocol\u2019s native decentralized exchange. Its automated market-making pools accounted for 4.11 million OM in TVL, making it the primary driver behind the sharp uptick.<br \/>\nMantra Swap TVL performance chart. Source: DefiLlama A more decentralized ecosystem would have a greater capital distribution with multiple liquidity sources across lending markets, staking platforms, derivatives, etc.<br \/>\nRelated: Mantra says one particular exchange may have caused OM collapse<br \/>\nAdditionally, Mantra\u2019s 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.<br \/>\nMantra TVL vs. FDV (in dollar terms). Source: DefiLlamaWith only 0.17% of its theoretical value actively deployed in its ecosystem, the protocol shows low capital efficiency and limited real-world usage.<br \/>\nThis imbalance suggests the market cap is likely driven more by speculation than adoption, and with a large portion of tokens likely still locked, there\u2019s a high risk of future dilution as vested tokens are unlocked.<br \/>\nAnalyst JamesBitunix posed Mantra\u2019s FDV as a huge risk to OM dip buyers, saying:<br \/>\n\u201cA lot of traders jumped in at this \u2018bottom\u2019 \u2014 both on spot and with leverage. Personally, I\u2019d trigger another correction \u2014 preferably a sweep of the lows followed by a quick bounce.\u201d<br \/>\nThis 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.<a href=\"https:\/\/cointelegraph.com\/news\/mantra-tvl-jumped-500-om-price-collapsed?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsThe total-value-locked (TVL) on Mantra\u2019s RWA blockchain protocol reached a yearly high despite OM\u2019s 90% price crash. Mantra TVL surges 500% following OM\u2019s crash As of April 15,&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127228"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127228"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127228\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127228"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}