Mantle token hits all-time high amid increased interest in Layer 2s

The original token of Ethereum Layer-2 blockchain cloak rose more than 20% to hit a record high of $0.948 at one point on Monday afternoon in Asia, according to The block’s pricing page. The jump was mainly driven by growing interest in Coat MNT

+10.06%
‘s applications and the broader Ethereum Layer-2 ecosystem, experts said.

Joe Caselin, head of institutional marketing at crypto exchange BIT, said Mantle’s “double dose” drive – which offers double the market reference rate for deploying ether – has increased its popularity.

“With Mantle Staked Ethereum (mETH), the team has devised ways to take market share from category leader Lido. The unusually high 7.2% native ‘double dose’ yield serves as a clear example,” Caselin told The Block.

“While users are getting a taste of mETH, developers are actively expanding Mantle’s DeFi [ecosystem]expanding the usability of mETH in other apps and also securing partnerships with projects that engage institutional stakeholders,” Caselin added.

The Layer-2 network has seen significant growth since the mainnet launched last July, and is currently the seventh largest Layer-2 chain with a total value of over $219 million, according to CoinGecko. facts.

Rachael Lucas, technical crypto analyst at BTC Markets, pointed out Mantle’s correlation with ether, which grew more than 30% in the past 30 days and surpassed the $3,000 mark.

“It is important to note that Mantle Network functions as an L2 scalability solution on Ethereum,” says Lucas. “It uses validator nodes to compress transactions into Ethereum-compatible ‘compressed blocks’, reducing gas costs and improving transaction throughput.”

Growing interest in L2

Aside from the growing interest in Mantle’s DeFi projects, industry experts said the attention the Ethereum Layer-2 ecosystem is receiving also played a role in the price increase.

“The rising price of the Mantle token, one of the largest L2 tokens on Ethereum, reflects the market’s growing interest in Layer 2,” said Greta Yuan, head of research at VDX, an institutional digital asset solutions company. “Another reason for the price increase is the high expectation of the ETH Cancun upgrade, which could further boost the roll-up technology and bring new investments.”

BIT’s Caselin said expectations for potential spot ether exchange-traded funds (ETFs) in the US are also factored into Mantle’s price.

“With analysts now confident that ETH ETF approval has the same odds as a coin toss, there is growing interest in liquid staking protocols as the most productive way to hold ETH while awaiting positive news,” Caselin said.

Some major US asset managers, including Fidelity and BlackRock, have filed for spot ether ETFs speculation that the Securities and Exchange Commission could approve them as early as May of this year.