The native token of the Ethereum Layer 2 blockchain Mantle, MNT, rose over 20% on Monday to reach an all-time high of $0.967. The price surge comes amid growing interest in Mantle’s applications and the broader Ethereum Layer 2 ecosystem.
According to Joe Caselin, head of institutional marketing at cryptocurrency exchange BIT, Mantle’s “double-dose” staking rewards program has been a key driver of demand. With Mantle Staked Ethereum (mETH), users can earn up to 7.2% in native token rewards, significantly higher than rival staking protocols.
“As users get a taste of the mETH, developers are actively expanding Mantle’s DeFi ecosystem, enhancing mETH’s utility across other apps and also securing partnerships with projects that appeal to institutional stakers,” said Caselin.
The Layer 2 network has seen rapid growth since launching its mainnet in July 2022, becoming the 7th largest L2 chain with over $219 million in total value locked, according to the latest data from CoinGecko.
Industry experts say the broader interest in Ethereum Layer 2 solutions has benefited Mantle. “The soaring price of the Mantle token reflects the market’s growing interest in Layer 2,” said Greta Yuan of institutional digital asset firm VDX.
The anticipated launch of Ethereum ETFs in the U.S. is another potential catalyst, according to Caselin. “With analysts now certain that the ETH ETF approval has the same odds as a coin toss, there’s a growing interest in liquid staking protocols as the most productive way to hold ETH in anticipation of positive news,” he said.
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