The layer 2 (L2) Mantle (MNT) blockchain has demonstrated remarkable performance, outperforming most of the top 100 cryptocurrencies on the market. The token is up 40% in the last 24 hours, reaching a new all-time high (ATH) of $1.49.
Mantle Network Layer 2 Solution
Mantle Network operates as an Ethereum Virtual Machine (EVM) compatible L2 scaling solution to provide a deeper understanding of the protocol. It leverages Optimistic rollups to enable fast, cost-effective transactions.
The unique aspect of Mantle lies in its modular design, which combines Optimistic rollups with a separate data availability layer. Unlike traditional blockchains, Mantle’s approach involves handling the four main blockchain functions at different layers.
Mantle’s transaction execution function occurs in its EVM-compatible execution settlement layer. Blocks are generated in the L2 execution layer by the Mantle sequencer, which then sends the root state data to the Ethereum mainnet.
This architecture significantly reduces transaction costs compared to the base layer and improves network efficiency by separating layers. Additionally, implementing Optimistic rollups minimizes the overall load on nodes.
MNT emerges with staking launch
One of the potential catalysts behind the recent surge in MNT can be attributed to the introduction of MNT staking, as highlighted by crypto researcher Alex Wacy.
According to For Wacy, the Mantle Rewards Station plays a key role in this staking initiative, offering rewards to MNT stakers in the Mantle Ecosystem. By participating in staking, users contribute to the security and operations of the network while being incentivized through these rewards.
The staking process begins with the Athena event, where users receive mShards tokens. These tokens have value within the Mantle decentralized finance (DeFi) ecosystem, allowing users to perform various decentralized finance activities within the network. These activities may include trading, investing, or interacting with various DeFi Protocols and applications built on top of Mantle.
In particular, mShards can be traded within the Mantle decentralized application (dApp) ecosystem, allowing users to take advantage of the market’s potential growth options. The ability to trade these tokens increases liquidity and promotes an active ecosystem within Mantle.
Additionally, the researcher notes that mShard token holders will soon be able to redeem ENA, another token associated with the Mantle Ecosystem. This redemption process adds utility and value to mShards, further increasing their appeal to token holders.
Ethena shard issuance for Season 2 will end on April 1, indicating a limited-time opportunity for users to acquire these shards through to betwhich may have further increased interest in blockchain ahead of the deadline from investors looking to capitalize on this opportunity.
Bullish outlook
Examining the numbers, MNT has experienced an increase in trading volume, reaching $647,118,249 in the last 24 hours, signifying a substantial increase of 141.40% compared to the previous day.
The market capitalization of the MNT token is $4,157,261,742, propelling it to 33rd position on CoinGecko. ratings. Over the past 7 days, Mantle (MNT) has outperformed the global cryptocurrency market, which has seen an increase of 2.30%, and similar cryptocurrencies within the Ethereum ecosystem have increased by 12.70%.
The MNT token has returned to the $1.27 level, marking a 2% price drop in the last hour. Despite the temporary setback, the token’s strong momentum suggests potential trading risks and opportunities. It is worth noting that the next identified support The token line is at the $1,080 level.
If this support level is not held, the token’s price could fall further, potentially reaching the $1 mark. The next significant resistance level would be $0.94.
However, if the bullish momentum continues throughout the week, the token could reach the $1.60 and $1.68 levels before potentially rising towards the $2 mark.
Featured image from Shutterstock, chart from TradingView.com
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