Mantra (OM), a leading player in the Real World Asset Tokenization (RWA) industry, has become one of the best-performing cryptocurrencies this year. It has jumped by over 5,200% since January, pushing its market cap to over $1 billion. Here are some of the top reasons why Mantra has beaten the likes of Solana and Ethereum.
Upcoming mainnet launch
Mantra has soared, and is sitting near its highest level since July 24 as investors wait for the upcoming mainnet launch, which is set to happen later this month.
This mainnet launch is set to transform Mantra into the biggest blockchain for the tokenization industry.
Exports believe that tokenization will become the biggest use case of the blockchain industry. For example, Mantra has inked a deal to tokenize real estate assets worth over $500 million in the United Arab Emirates (UAE).
Also, several tokenized funds by the companies like Franklin Templeton, Blackrock, and Ondo Finance have accumulated over $500 million in assets each.
Mantra’s mainnet will introduce features already in its testnet like verifiable network security and a trusted platform to deploy institutional capital onchain.
In most periods, cryptocurrency prices do well ahead of a major event. For example, Bitcoin soared to a record high of $73,800 in March this year, ahead of the halving event. It also rose in December as anticipation of spot Bitcoin ETFs rose.
High staking yield and no token unlocks
The other reason why Mantra’s token has surged is that it is one of the highest yielders in the crypto industry.
Mantra has a staking yield of 22.3%, higher than all the top coins. For example, Cosmos Hub yields 18.1%, while popular coins like Avalanche, Tron, Ethereum, and Solana have a yield of less than 6%.
Mantra’s 22% yield means that a $1,000 investment in the coin will bring in $22 a year, all factors constant. A similar investment in Ethereum, which has a 3.25% yield would bring in less than $4.
Most importantly, data by CoinMarketCap shows that Mantra has a total supply of 888,888,888 OM tokens while 850 million of them are in circulation. This means that Mantra, unlike other popular coins like Avalanche and Sui, will not have any dilution in terms of token unlocks.
A token unlock is a situation where new tokens are added to a network as part of a vesting schedule. When this unlock happens, some of these tokens end up in a staking pool, leading to lower yield.
Mantra has strong technicals
Additionally, Mantra has strong technicals. As shown above, the token has formed an ascending channel, which connects key swings since March, this year. It has now moved close to the upper side of this channel.
Mantra has also remained above the 50-day and 100-day moving averages and the 23.6% Fibonacci Retracement level. It also remains above the first support of the Andrew’s pitchfork tool. Therefore, Mantra may continue soaring as buyers target the all-time high of $1.4145.
