Mantles MNT defies altcoin slump, expects new highs in October

Mantles MNT token is one of the assets to defy the recent altcoin downturn, as it traded near all-time highs. MNT expects further breakouts following special trading incentives.

Manta (MNT) is defying the downturn of the altcoin market. The token, linked to the Manta L2 chain, traded around $1.82, after a recent peak close to $1.90.

MNT charted multiple all-time highs in the past three months, as the Mantle project accelerated its marketing and incentives. | Source: CoinGecko.

The rally of MNT followed last days growth for a smaller selection of altcoins, as reported by Cryptopolitan. MNT showed the market had sufficient enthusiasm for recovery, producing all-time peaks for previously less active tokens.

MNT also helped the altcoin season index, which recovered to 76 points, once again indicating altcoins were hot and could invite heightened demand. MNT tokens traded with open interest near an all-time high of $256.22M.

On Hyperliquid, just eight whales are competing for the direction of MNT, equally split for long and short positions. The recent rally caused unrealized gains for short positions, as the biggest whale shorted MNT in a position valued at $2.15M.

MNT receives fee discounts on Bybit

The recent price rally coincided with Bybits new trading incentive program. MNT is the first token beyond stablecoins that is offering fee offsets on Bybit.

MNT tokens will also unlock Bybit VIP perks, as tokens have a bigger weight in calculating VIP assets. Demand for MNT may be rising as the token allows Bybit traders to gain VIP status with a lower capital commitment.

The recent price rally comes from the incentives of holding MNT, or using the token to pay lower trading fees. Bybit currently carries over 56% of the total MNT volumes, becoming the key factor behind the rally with concentrated liquidity.

Mantle network posts peak activity

Mantle network rode the general trend of expanding L2 activity. The chain carries out a near-record number of operations, while securing around $2.22B in value.

Mantle still does not count as a fully decentralized L2 chain, but has nevertheless benefitted from the shift of economic activity. The chain secures only around $253M in its DeFi industry, as it lacks liquid staking and lending, two of the apps with the biggest potential reserves.

Nevertheless, Mantle posted growth in the past month, as the Agni Finance DEX expanded its activity. For now, Mantle is yet to recover its DeFi activity levels from October 2024, though metrics have improved in the past month. Mantle is currently a limited producer of fees, and is trying to promote its chain in a bid to grab a larger share of the Ethereum ecosystem.

Over 46% of MNT tokens are held in the BitDAO treasury. The tokens supply is traded on Ethereum, with a significant interconnection between large wallets, based on Bubblemaps data. Currently, Mantle is a relatively niche asset, using the altcoin boom to boost its positions and exposure. While the token is highly active, its activity and volumes are too concentrated on one exchange and may not be sustainable.