DailySun
The price of Mantra has increased for three consecutive days, establishing itself as one of the top-performing cryptocurrencies as many others have seen declines.
The Mantra (OM) token has risen to $4, slightly surpassing its lowest point this week. This recovery has escalated the token’s market cap to over $3.8 billion.
This surge occurred despite the staking yield falling to 15.4%, marking a decline of over 12% in the past 24 hours, as reported by StakingRewards. This decrease in yield took place even with the staking market cap increasing by more than 5% to $2.4 billion.
Nonetheless, Mantra continues to offer some of the highest staking rewards within the cryptocurrency market. For comparison, Polygon provides yields of 5.6%, while Ethereum (ETH) and Solana (SOL) yield 3.2% and 6%, respectively.
Staking involves delegating tokens to assist in securing a network. The yields generally arise from network fees and are distributed on a monthly basis.
Mantra’s robust staking yield has played a significant role in its status as one of the best-performing cryptocurrencies this year, with its price surging more than 7,200% from its lowest point.
This recent rally was further propelled by the launch of MantraChain, a layer-1 network designed for Real World Asset tokenization products. MantraChain aspires to become the primary blockchain for developers in the booming tokenization space.
According to its creators, the chain addresses the blockchain trilemma of decentralization, security, and scalability by utilizing the Cosmos SDK, a widely adopted framework in the crypto world.
The tokenization sector has seen remarkable growth in recent years. For instance, Ondo Finance (ONDO), a prominent tokenization initiative, has amassed over $600 million in assets. Additionally, other tokenized assets, such as BlackRock’s BUIDL and Franklin Templeton’s FOBXX, together hold over $1 billion in assets.
Mantra price braces for a significant move ahead
Recent daily charts indicate that the OM price has been in a consolidation phase in the past weeks, following its sharp rally in November.
This phase of consolidation is forming a bullish pennant chart pattern, which is a favored continuation signal. The pattern is characterized by a long vertical rise followed by a symmetrical triangle. Generally, assets experience substantial breakouts as the triangle nears its convergence point.
If this pattern holds, the OM price may rebound and initially target its year-to-date high of $4.5. Exceeding this threshold could indicate further gains, potentially elevating the price to the significant psychological mark of $5. However, a decline below the support level of $3.5 would negate this optimistic outlook.
