{"id":22227,"date":"2025-04-15T17:47:04","date_gmt":"2025-04-15T17:47:04","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=22227"},"modified":"2025-04-15T17:47:04","modified_gmt":"2025-04-15T17:47:04","slug":"red-flag-mantras-tvl-jumped-500-as-om-price-collapsed","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=22227","title":{"rendered":"Red flag? Mantra’s TVL jumped 500% as OM price collapsed"},"content":{"rendered":"
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The total-value-locked (TVL) on Mantra\u2019s RWA blockchain protocol reached a yearly high despite OM\u2019s 90% price crash.<\/p>\n

Mantra TVL surges 500% following OM\u2019s crash<\/h2>\n

As 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<\/a>.<\/p>\n

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Mantra\u2019s cumulative TVL chart. Source: DefiLlama.<\/em><\/p>\n<\/figcaption><\/figure>\n

Interestingly, the TVL rise accompanied a dramatic collapse in OM prices<\/a>, which plunged over 90% during the weekend. The Mantra team attributed the sell-off to \u201creckless forced liquidations\u201d initiated by centralized exchanges.<\/p>\n

A rising TVL<\/a> 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. <\/p>\n

Analyst DOM spotted<\/a> \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 <\/p>\n

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Mantra total aggregated spot CVD vs. Binance spot price. Source: DOM<\/em><\/p>\n<\/figcaption><\/figure>\n

Despite the 90% price crash, the simultaneous TVL spike and \u201caggressive buying\u201d suggest that certain participants saw the collapse as a buying opportunity. <\/p>\n

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.<\/p>\n

As of April 15, OM\u2019s price was trading for as high as $0.99, up around 170% from the weekend lows.<\/p>\n

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OM\/USDT daily price chart. Source: TradingView<\/em><\/p>\n<\/figcaption><\/figure>\n

97% of Mantra TVL is one DApp <\/h2>\n

Increases in Mantra\u2019s TVL accompany red flags.<\/p>\n

For instance, around 97% of Mantra\u2019s TVL growth came from Mantra Swap, the protocol\u2019s native decentralized exchange. Its automated market-making pools accounted<\/a> for 4.11 million OM in TVL, making it the primary driver behind the sharp uptick.<\/p>\n

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Mantra Swap TVL performance chart. Source: DefiLlama <\/em><\/p>\n<\/figcaption><\/figure>\n

A more decentralized ecosystem would have a greater capital distribution with multiple liquidity sources across lending markets, staking platforms, derivatives, etc. <\/p>\n

Related: <\/strong><\/em>Mantra says one particular exchange may have caused OM collapse<\/strong><\/em><\/a><\/p>\n

Additionally, 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.<\/p>\n

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Mantra TVL vs. FDV (in dollar terms). Source: DefiLlama<\/em><\/p>\n<\/figcaption><\/figure>\n

With only 0.17% of its theoretical value actively deployed in its ecosystem, the protocol shows low capital efficiency and limited real-world usage. <\/p>\n

This 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.<\/p>\n

Analyst JamesBitunix posed<\/a> Mantra\u2019s FDV as a huge risk to OM dip buyers, saying:<\/p>\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<\/p><\/blockquote>\n

This 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.<\/p>\n