🌎 Mantra Price Surges Amid High Staking Yield

Mantra Price Surges as Staking Yield Remains High

The Mantra token has experienced a significant price surge, rising for three consecutive days and becoming one of the best-performing cryptocurrencies in the market. Despite the majority of other cryptocurrencies declining, the Mantra price has increased to $4, slightly above its lowest level this week, pushing its market cap to over $3.8 billion.

Staking Yield and Market Performance

The staking yield for Mantra has dropped to 15.4%, representing a decline of over 12% in the last 24 hours. However, this drop occurred despite the staking market cap rising by over 5% to $2.4 billion. Mantra still offers one of the highest staking rewards in the crypto industry, with yields significantly higher than those of Polygon (5.6%), Ethereum (3.2%), and Solana (6%).

Staking involves delegating tokens to help secure a network, with yields typically coming from the fees the network earns and distributed monthly. This process has contributed to Mantra’s status as one of the best-performing cryptocurrencies this year, with its price increasing by over 7,200% from its lowest point.

MantraChain and Tokenization

The recent launch of MantraChain, a layer-1 network for building Real World Asset tokenization products, has intensified the rally. MantraChain aims to become the main blockchain for developers in the fast-growing tokenization sector. By leveraging the Cosmos SDK, one of the most popular frameworks in the crypto industry, the chain addresses the blockchain trilemma of decentralization, security, and scalability.

The tokenization industry has grown significantly in recent years, with projects like Ondo Finance accumulating over $600 million in assets. Other tokenized assets, such as BlackRock’s BUIDL and Franklin Templeton’s FOBXX, have a combined total of over $1 billion in assets.

Mantra Price Outlook

The daily chart shows that the Mantra price has been consolidating in recent weeks following its vertical rally in November. This consolidation phase forms part of a bullish pennant chart pattern, a popular continuation signal. The pattern consists of a long vertical line followed by a symmetrical triangle, typically resulting in strong breakouts when the triangle approaches its confluence point.

If the pattern holds, the Mantra price could rebound and initially rise to its year-to-date high of $4.5. A move above that level could signal further gains, potentially pushing the price to the next psychological level of $5. However, a drop below the support level at $3.5 would invalidate the bullish outlook.