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The total-value-locked (TVL) on Mantra’s RWA blockchain protocol reached a yearly high despite OM’s 90% price crash.<\/p>\n
As of April 15, Mantra’s 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 Mantra’s 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 “reckless forced liquidations” initiated by centralized exchanges.<\/p>\n A rising TVL<\/a> typically indicates that users are locking more tokens into a protocol’s smart contracts via staking, liquidity pools, lending, or farming for yield or network participation. <\/p>\n Analyst DOM spotted<\/a> “aggressive buying” on crypto exchanges during the 90% OM price crash on April 13, amounting to $35 million worth of OM purchases when “the [Mantra] collapse was happening.” <\/p>\n 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 “aggressive buying” 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’s price was trading for as high as $0.99, up around 170% from the weekend lows.<\/p>\n OM\/USDT daily price chart. Source: TradingView<\/em><\/p>\n<\/figcaption><\/figure>\n Increases in Mantra’s TVL accompany red flags.<\/p>\n For instance, around 97% of Mantra’s TVL growth came from Mantra Swap, the protocol’s 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 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’s 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 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’s a high risk of future dilution as vested tokens are unlocked.<\/p>\n![\"Red](\"http:\/\/www.thebusinesschain.com\/wp-content\/uploads\/2025\/04\/01963a64-72bb-74e2-b95f-1171648a6d19-scaled.jpg\" "\\"\\"")
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97% of Mantra TVL is one DApp <\/h2>\n