Mantra price is on the verge of a massive breakout as staking yield falls

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As a seasoned analyst with over two decades of experience in financial markets, I must admit that my eyes are always drawn to high-yielding assets, and Mantra seems to be one such asset that has caught my attention. The consistent three-day rise in Mantra’s price, coupled with its impressive market cap, is indeed intriguing.

For the past three days, the value of Mantra has been on an upward trend, making it one of the top-performing cryptocurrencies, while many others experienced a drop in value.

The price of the OM token increased slightly to around $4, a small rise from its lowest point this week. As a result, the token’s total market capitalization surpassed $3.8 billion.

Its rally occurred even as the staking yield dropped to 15.4%. This represents a decline of over 12% in the last 24 hours, according to StakingRewards. This drop happened despite the staking market cap rising by over 5% to $2.4 billion.

Nevertheless, Mantra stands out with its exceptionally high returns on staking compared to many other cryptocurrencies in the market. To illustrate, Polygon provides a yield of 5.6%, whereas Ethereum (ETH) and Solana (SOL) offer yields of 3.2% and 6% respectively, but Mantra surpasses these figures.

In simpler terms, staking means assigning your tokens for the purpose of maintaining the network’s security. The rewards you receive usually stem from transaction fees the network collects, which are then distributed on a monthly basis.

As a researcher delving into the dynamic world of cryptocurrencies, I can attest that Mantra’s exceptional yield has undoubtedly cemented its position among the top performers this year. Remarkably, its price has skyrocketed by an astounding 7,200% from its lowest recorded point.

Lately, the intensity of this rally surged as the network unveiled MantraChain, a primary network designed for creating tokens representing real-world assets. The ambition behind MantraChain is to emerge as the leading blockchain platform for developers operating within the rapidly expanding tokenization industry.

As stated by its creators, this chain tackles the challenge known as the blockchain trilemma – balancing decentralization, security, and scalability – through the use of Cosmos SDK, a widely recognized and influential development kit within the cryptocurrency sector.

In recent times, the field of tokenization has experienced substantial growth. For instance, Ondo Finance, a prominent player in this sector (symbol ONDO), has amassed more than $600 million worth of assets. Furthermore, other tokenized assets like BlackRock’s BUIDL and Franklin Templeton’s FOBXX have collectively surpassed the $1 billion mark in terms of assets under management.

Mantra price prepares a big move ahead

Over the past few weeks, the daily graph indicates that the OM price has been stabilizing after experiencing a steep upward trend in November.

As an analyst, I’ve noticed that we’re currently in a phase where consolidation aligns with a bullish pennant chart pattern – a well-regarded continuation signal. This pattern is characterized by a prolonged upward trend followed by a symmetrical triangle formation. When this triangle reaches its convergence point, assets tend to undergo significant breakouts, indicating potential growth.

Following the current trend, it’s possible that OM’s price may bounce back and reach its highest point this year ($4.5) first. If it surpasses this mark, it could indicate further increases, possibly taking the price up to $5 next. Conversely, if the price falls below the support at $3.5, it might suggest a change in the bullish forecast.

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2024-12-18 18:12