MANTRA’s $OM Hits All-Time High, Surging 4,600% on RWA L1 Plans

Multi-chain decentralized finance (DeFi) platform MANTRA’s OM token has seen its value increase by over tenfold in the first six months of 2024.

In early June 2024, the OM token hit an all-time high, buoyed by MANTRA’s plan to launch a real-world asset-focused (RWA) layer one (L1) blockchain on Cosmos (ATOM) by the end of the year.

What is MANTRA, and what’s driving OM token price higher? Let’s find out whether the uptrend is sustainable.

Table of Contents Table of Contents

1. Key Takeaways
2. What Is MANTRA?
3. OM Token: Tokenomics, Utility, and More
4. Latest MANTRA News
5. OM Price Performance and RWA Industry View
6. The Bottom Line
7. FAQs
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. What Is MANTRA?
3. OM Token: Tokenomics, Utility, and More
Show Full Guide
4. Latest MANTRA News
5. OM Price Performance and RWA Industry View
6. The Bottom Line
7. FAQs
8. References

What Is MANTRA?

MANTRA is a DeFi platform that offers diversified crypto investment products known as “vaults” and staking services across various blockchain networks, including Ethereum (ETH), Polygon (MATIC), and BNB Chain (BNB).

MANTRA Builds a Regulatory-Compliant L1 for RWA

In July 2023, MANTRA released a technical paper for its standalone L1 chain, the MANTRA Chain. The L1 is currently being built using the Cosmos Software Development Kit (SDK).

The MANTRA Chain aims to be “the chain of regulated digital assets.” It will offer developers and institutions a regulatory-compliant environment to launch, list, and trade RWAs such as securities, bonds, fine art, real estate, and more.

“These tokens can be issued through security token offerings and can then be traded on a KYC/AML guarded secondary market such as MANTRA Chain’s decentralized exchange,” said MANTRA.

As of June 14, 2024, the MANTRA Chain was in its test net phase. The MANTRA Chain mainnet is expected to launch in the second half of 2024.

👨‍💻 Hongbai Incentivized #Testnet is LIVE!

We’re thrilled to open the floodgates to the Hongbai testnet, welcoming over 100,000 eager participants to explore #MANTRA— the premier security-first Layer 1 blockchain for #RWA tokenization.

Read more: https://t.co/W6FhBgqE9Q

🛠️ What… pic.twitter.com/lsJXcLoGtr

— MANTRA – Tokenizing RWAs (@MANTRA_Chain) April 10, 2024

Vaults: MANTRA’s Flagship Product

At the time of writing, MANTRA’s flagship product was a diversified crypto investment product known as “vaults.”

MANTRA’s vaults allow crypto investors to gain exposure to single or multiple cryptocurrencies and their staking rewards by simply depositing stablecoins such as USDT or USDC.

These vaults enable investors to skip cumbersome processes related to staking and investing in cross-chain assets.

For example, using the MAV2 AKNAS vault, an Ethereum, BNB Chain, or Polygon user can gain exposure to Solana (SOL), Cardano (ADA), Near (NEAR), Kusuma (KSM), and Cosmos, and their staking yields, by locking up their USDC for a fixed term of 182 days. This process enables crypto investors to gain exposure to cross-chain assets without going through tedious bridging processes.

OM Token: Tokenomics, Utility, and More

When the MANTRA Chain mainnet launches, the OM token will be the native token of the chain.

As of now, the OM token’s use case is limited to staking and governance voting.

The OM token currently exists on three blockchains – Ethereum, BNB Chain, and Polygon. OM staking currently offers an estimated annual percentage yield (APY) of 35%.

As of June 14, 2024, the total existing supply of OM tokens was 888.888 million tokens. When the MANTRA Chain launches, an additional 888.888 million OM tokens will be minted.

“The most important reason for this, is to enable a validator ecosystem that will securely propagate blocks on MANTRA Chain. If we were to retain the fixed token supply in the current emissions model, it would be infeasible to efficiently operate and incentivize a robust validator set. Hence, an inflationary token model is necessary for the initial phase of MANTRA’s RWA ecosystem,” read a MANTRA DAO proposal.

According to MANTRA, the newly issued tokens will be allocated to/for:

Finer details on new OM token issuances will be announced soon.

Latest MANTRA News

Here are the latest MANTRA-related developments that have been key in driving OM token prices higher in 2024.

MoU With UAE’s Zand Bank

In June 2024, MANTRA signed a memorandum of understanding (MoU) with Zand Bank, a UAE-based bank.

The deal will see MANTRA and Zand work together to define frameworks for RWA tokenization, in compliance with the Virtual Asset Regulatory Authority of Dubai.

“The MOU will ensure strict compliance with relevant standards, investor protection measures, and regulatory requirements. In doing so, we aim to remove hurdles and foster trust, confidence, and widespread adoption of RWAs across the region,” said MANTRA.

Partnership With Ondo to Launch RWA Vault

In June 2024, MANTRA announced the launch of an RWA saving vault in collaboration with tokenization platform Ondo.

MANTRA said that Ondo’s USDY token – a tokenized note secured by short-term US Treasuries and bank deposits – will launch with the MANTRA Chain mainnet.

USDC holders will be able to access low-risk, short-term US treasuries yield via the USDY vault on MANTRA.

Expansion to Base L2

In May 2024, MANTRA approved a proposal to establish an OM/ETH liquidity pool on Uniswap V2 on Base L2 chain.

The expansion into Base – the third most valuable Ethereum L2 chain in terms of total value locked (TVL) – is part of MANTRA’s multi-chain approach and strategy to broaden OM’s adoption and visibility.

The MANTRA DAO proposal, which passed with 100% of voters supporting it, read:

“With over US$2.6 billion of native USDC on-chain and growing fast, we believe that Base is becoming a hub for stablecoin liquidity. As such, we hope to establish meaningful liquidity for the OM token on Base as a prelude to launching other products within the ecosystem.”

OM Price Performance and RWA Industry View

MANTRA launched in 2020. Early OM price data on CoinMarketCap showed the token trading at about $0.4 in August 2020.

Barring a brief period of price appreciation in early 2021, the OM token saw subdued investor interest till October 2023, when it hit an all-time low of about $0.017.

However, since December 2023, the OM token has been on a tearing run, gaining as much as 4,616% to an all-time high of $1.09, hit on June 10, 2024.

Investor interest in RWA tokenization platforms like MANTRA has been the key catalyst to spark OM’s resurgence in 2024. OM’s best monthly performance ever came in March 2024 (+177%), which coincided with global investment firm BlackRock’s announcement of the launch of its first tokenized fund issued on Ethereum.

Securitize co-founder and CEO Carlos Domingo said:

“Tokenization of securities could fundamentally transform capital markets. Today’s news demonstrates that traditional financial products are being made more accessible through digitization.”

According to digital asset management firm 21.co, RWA tokenization is expected to scale to a “multi-trillion-dollar opportunity by 2030.”The company said in its 2023 State of Tokenization report:

“In our view, tokenization represents a breakthrough in financial innovation comparable to the introduction of mutual funds in the 1970s and ETFs in the 1990s. However, given the proper regulatory frameworks, its impact will be much more ubiquitous as it allows any asset to be represented digitally on the blockchain.”

The Bottom Line

MANTRA has made shrewd moves to focus on RWA tokenization at the right time. The OM price appreciation in 2024 has further helped MANTRA gain visibility among global crypto investors.

The platform is in a great spot to establish itself as a top 100 crypto in the world. The market will closely watch the mainnet launch of the MANTRA Chain and collaboration with traditional finance clients.

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