Despite the recent sharp market decline, the Total Value Locked (TVL) of Mantra, a real-world asset (RWA) based blockchain protocol, has reached its annual peak, drawing market attention. This appears to be a result reflecting the strategic approach of some major investors who viewed the market downturn as a buying opportunity.
According to the DeFi data platform defillama, as of April 15, Mantra's TVL was 4.21 million OM tokens (approximately 4.73 billion won), surging over 500% compared to two days prior. This trend contrasts with the OM price dropping over 90% during the weekend.
The Mantra team analyzed that the price plunge was due to indiscriminate forced liquidations on some centralized exchanges. However, with large capital inflows confirmed simultaneously with the price decline, the market speculates that strategic investment activities occurred.
According to crypto analyst DOM, approximately $35 million worth of OM was purchased on exchanges on April 13 when the OM price plummeted, suggesting possible tactical accumulation by large addresses (whales) or insiders. The OM price subsequently rebounded, recovering to a maximum of $0.99 on the 15th, a 170% increase from the weekend's lowest point.
Meanwhile, there are structural risk signals in this growth. Approximately 97% of the total TVL occurred on Mantra's own decentralized exchange (DEX), Mantra Swap. Of the 4.21 million OM TVL, 4.11 million OM is concentrated in the automated market-making pool, indicating severe asset concentration within the ecosystem.
A healthier decentralized ecosystem would have funds evenly distributed across various protocols like staking, lending, and derivatives, but the current structure indicates a high-risk concentrated position. Moreover, while Mantra's fully diluted valuation (FDV) reaches $188 million (approximately 2.7448 trillion won), the actual TVL is only $324,000 (about 473 million won), highlighting an excessive disparity between market cap and utility.
In other words, only 0.17% of the total value is actually deployed in the ecosystem. This could be a factor of excessive market expectations and speculative sentiment inflating the market cap, and with a significant number of tokens still locked, there are concerns about potential dilution from future token unlocks.
Analyst JamesBitunix mentioned on social media, "Many traders have entered spot and leveraged trades believing this is the bottom. Personally, I'm considering a scenario of additional short-term adjustments testing the bottom again before a sharp rebound."
Market participants need to view the Mantra situation not as a simple technical rebound, but as a warning about ecosystem structure and token distribution imbalances. Ignoring the system risks behind the bullish surface could lead to repeated similar sharp declines, warranting caution.
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