The post Red flag? Mantra’s TVL jumped 500% as OM price collapsed appeared on BitcoinEthereumNews.com.

The total-value-locked (TVL) on Mantra’s RWA blockchain protocol reached a yearly high despite OM’s 90% price crash. Mantra TVL surges 500% following OM’s crash As of April 15, Mantra’s 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. Mantra’s 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 “reckless forced liquidations” initiated by centralized exchanges. A rising TVL typically indicates that users are locking more tokens into a protocol’s smart contracts via staking, liquidity pools, lending, or farming for yield or network participation. Analyst DOM spotted “aggressive buying” on crypto exchanges during the 90% OM price crash on April 13, amounting to $35 million worth of OM purchases when “the [Mantra] collapse was happening.” Mantra total aggregated spot CVD vs. Binance spot price. Source: DOM Despite the 90% price crash, the simultaneous TVL spike and “aggressive buying” suggest that certain participants saw the collapse as a buying opportunity. The 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. As of April 15, OM’s price was trading for as high as $0.99, up around 170% from the weekend lows. OM/USDT daily price chart. Source: TradingView 97% of Mantra TVL is one DApp Increases in Mantra’s TVL accompany red flags. For instance, around 97% of Mantra’s TVL growth came from Mantra Swap, the protocol’s 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. Mantra Swap TVL performance chart. Source: DefiLlama A…

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Filed under: News - @ April 16, 2025 1:23 am