Mantra (OM) has recently become a key player in the real-world asset (RWA) token sector, witnessing a remarkable 185% increase in value over the past 30 days.
Mantra (OM) has recently become a key player in the real-world asset (RWA) token sector, witnessing a remarkable 185% increase in value over the past 30 days.
The token's rise stands out against a backdrop of lackluster performance among other altcoins and blue-chip assets. As of Feb. 24, OM's price reached $8.18, with a market valuation exceeding $560 million.
Despite its impressive gains, concerns are growing regarding the sustainability of OM's rally. In recent weeks, smart money wallets have offloaded approximately $42.5 million worth of OM, marking the highest sell-off on the Ethereum network.
This trend raises questions about potential exit liquidity for traders amid this surge. Over the past seven days, $590 million in assets were transferred from on-chain wallets to centralized exchanges, further suggesting a trend of selling.
The upcoming airdrop of 50 million OM tokens, scheduled for March, could also impact pricing dynamics. The airdrop targets a diverse group, including holders and stakers of ATOM tokens, alongside incentivized activities on the Mantra testnet.
This event is currently in its Sybil-slaying phase, where users must self-report to avoid disqualification from receiving rewards.
While OM has enjoyed a significant upswing, the token's activity on exchanges has surged, with record flows indicating a potential correction on the horizon. The open interest trends show a shift to record negative funding levels, signaling heightened risks associated with holding OM at its current price.
Additionally, the limited supply of under 1 billion OM tokens, with over 60% already unlocked, contributes to its perceived value. The integration of the native Mantra L1 chain on the Gate.io exchange has also played a role in boosting trading volumes.
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