Mantle Token Surges 20% to All-Time High Amid L2 Sector Growth Predictions

The native token of the Ethereum Layer 2 solution, Mantle Network (MNT), soared by 20% in a day to reach $0.948, marking an all-time high.

At the time of writing, the coin’s price had adjusted to $0.885 amid a broader market decline. According to CoinGecko, the asset’s market capitalization exceeded $2.8 billion, making Mantle the seventh-largest L2 network by volume.

In December 2023, the project’s developers launched a liquid staking protocol offering access to “enhanced income opportunities.” Users receive Mantle Staked Ether (mETH) in exchange for their deposited ETH, representing their stake.

A total of 16,410 validators have locked a combined 525.12 ETH (~$1.58 million) on Mantle LSP, with the service offering an annual yield of 5.94%.

Joe Kazelin, Head of Marketing at the BIT crypto exchange, told The Block that the “double dose” base rate campaign has boosted the platform’s popularity.

“With mETH, the team devised a way to capture market share from the category leader, Lido. The unusually high native yield of 7.2% from the ‘double dose’ serves as a clear example,” he explained.

According to him, Mantle’s developers are continually expanding the protocol’s DeFi ecosystem, providing broader applications for mETH.

Technical analysts at BTC Markets noted the correlation between MNT and ETH, which recently surpassed the $3000 level.

“It is important to note that Mantle Network functions as an L2 scaling solution for Ethereum. It uses validator nodes to bundle transactions into ‘compressed blocks’ compatible with the mainnet, reducing gas fees and increasing throughput,” the experts emphasized.

Growth of Layer 2 Solutions

Besides Mantle, other tokens in the L2 category are also on the rise. The overall index of Layer 2 solutions on CoinGecko increased by 6% over the past week.

Native tokens of protocols like Polygon, Metis, SatoshiVM, and Loopring are showing positive dynamics.

“The rise of Mantle, one of the largest Ethereum L2 tokens, reflects the market’s growing interest in Layer 2 solutions. Another reason for the price surge is the high expectations for the Dencun upgrade, which could further drive technology adoption and attract new investments,” stated Greta Yuan, Head of Research at VDX.

Moreover, the total TVL of Layer 2 solutions in Ethereum reached an all-time high of $29.14 billion, increasing by 11.84% over the past seven days.

Layer 2TVL has breached ATH yet again! ???29.14B in total, rising 11.84% in the past 7 days.@DeGateDex TVL has been steadily increasing too with 62M TVL. #IYKYK #Ethereum #Layer2 pic.twitter.com/yR3p2GvNE5

— DeGate | Mainnet is LIVE! ?? (@DeGateDex) February 26, 2024

According to DeFi Llama, the largest rollups by locked funds are Arbitrum ($3 billion), Optimism ($900 million), and Manta ($565 million). Mantle ranks fifth with $213 million.

The rapid development of L2 is also evidenced by recent launches like StarkNet, whose volume reached $160 million in a week. The mainnet launch of Blast is also expected on February 26.

Rumors of the imminent launch of spot exchange-traded funds based on the second-largest cryptocurrency by market cap are also fueling interest in Ethereum solutions.

“As analysts now believe that the approval of an ETH-ETF has the same odds as a coin flip, interest in liquid staking protocols as the most productive way to hold assets while awaiting positive news is growing,” added Kazelin.

Previously, experts noted the beginning of a bullish rally for altcoins, though some advised against making hasty conclusions.

Back in January, researchers at QCP Capital predicted Ethereum’s dominance in the medium term, as market participants anticipate the approval of a spot ETF based on the asset in the US.