The price of Mantra has increased for three straight days, making it one of the top-performing cryptocurrencies amidst a decline in most others.
Mantra (OM) token has surged to $4, slightly exceeding its lowest mark this week. This rebound has elevated the token’s market capitalization to over $3.8 billion.
This rally occurred despite a drop in the staking yield to 15.4%. This reflects a decline of more than 12% within the last 24 hours, as reported by StakingRewards. Notably, this decrease took place even as the staking market cap increased by over 5% to $2.4 billion.
Nonetheless, Mantra still offers some of the highest staking rewards in the cryptocurrency space. For comparison, Polygon provides yields of 5.6%, while Ethereum (ETH) and Solana (SOL) yield 3.2% and 6%, respectively.
Staking requires delegating tokens to support network security. The yields typically derive from the network’s fees, which are distributed monthly.
Mantra’s attractive staking rewards have played a significant role in its emergence as one of the most successful cryptocurrencies this year, witnessing a price increase of over 7,200% from its lowest point.
This recent rally gained momentum with the launch of MantraChain, a layer-1 network designed for developing Real World Asset tokenization products. MantraChain aspires to be the leading blockchain for developers in the rapidly expanding tokenization industry.
As per its developers, the blockchain addresses the challenges of decentralization, security, and scalability through the use of Cosmos SDK, one of the premier frameworks within the cryptocurrency space.
The tokenization sector has seen significant growth in recent years. For instance, Ondo Finance (ONDO), a prominent tokenization project, has amassed over $600 million in assets. Other tokenized assets, such as BlackRock’s BUIDL and Franklin Templeton’s FOBXX, collectively hold over $1 billion in assets.
Mantra price gearing up for a significant move
The daily chart indicates that the OM price has been consolidating in recent weeks following its sharp increase in November.
This phase of consolidation appears to be forming a bullish pennant chart pattern, which is a commonly recognized continuation signal. This pattern typically features a long vertical line followed by a symmetrical triangle, with assets often experiencing strong breakouts as the triangle approaches its convergence point.
If this pattern continues to hold, the OM price may rebound, initially reaching its year-to-date high of $4.5. A move above this level could indicate further upside potential, possibly advancing the price to the next psychological threshold of $5. However, a decline below the support level of $3.5 would negate this bullish outlook.
