The native token of the Mantle network is MNT. This was formerly known as BIT, but then turned to MNT after an integration with the former token at a 1:1 rate. The Mantle token reached an all-time-high on April 8th as it traded around $1.50. But, we don’t need to go far back in time to see the MNT token trading at $0.3 (November 2023). What has happened to the price of Mantle? What is causing the volatility, especially in the months of March and April 2024?
Mantle is a layer-two blockchain built on Ethereum. As a result, the Dencun upgrade for the Ethereum network had very positive effects on the price of transactions on the Mantle network. The transaction cost has decreased at least 10x since the upgrade took place, making it much easier and more fun to transact on the blockchain. But, that isn’t the only thing that has influenced the price.
Ethena Labs has brought much hype to Mantle.
Ethena Labs is one of the most hyped names in crypto right now with their native ENA token and the synthetic dollar, USDe. These have turned very popular, and Ethena is launching big-time on the Mantle network. As a result, users have been able to stake MNT tokens on Mantle Network since the end of March to receive mSHARDS.
These shards can later be swapped to ENA tokens, which means that you get the native Ethena Labs token as a reward for staking MNT tokens. That is quite awesome, and if you look at the chart below, you can clearly see that lots of people bought MNT as this launched.
Since the staking period started, we have seen mostly positive movements, but it has slowed down recently. Why is that?
- First of all, many people take profit right now, because they expect the selling pressure on the MNT token to increase as the staking period comes to an end.
- Mantle recently announced that you get 1 ENA token per 582 mShards. Some people were furious about this, considering it to be a low rate, meaning they can earn more with their MNT elsewhere (or sold).
These are the main reasons why the price of Mantle has been shaky recently. Where will it go from here? It is hard to predict, but there will most likely be a strong selling pressure as the staking period for MNT to get mShards comes to an end by the end of April. The professionals will sell earlier, and some have already sold, but will people be there to buy more MNT, or will the token go below the $1 level again?
If you want to join and earn Mantle rewards yourself (before April 27), visit the Mantle Rewards station at: https://www.mantle.xyz/rewards-station
What do you think?
