Here’s Why Mantle ($MNT) is the Top Performing L2 Token in 2024

KEY TAKEAWAYS

  • Mantle’s MNT token has outperformed L2 rivals OP, ARB and STRK in Q1 2024.
  • MNT posted year-to-date gains of about 90% as of March 29, 2024.
  • Mantle is closely associated with the centralized exchange ByBit.
  • Mantle merged with BitDAO in 2023.

Ethereum layer two (L2) chain Mantle Network (MNT) surged to an all-time high in the last week of March 2024 after listing on South Korea’s leading centralized exchange (CEX) Upbit.

The introduction of Mantle’s reward program in March also helped the MNT token outperform L2 rival tokens such as Optimism’s OP, Arbitrium’s ARB, and Starknet’s STRK.

Are you interested in investing in Mantle?

In this article, we analyze the Mantle Network and the MNT token.

Mantle Network: The Modular Blockchain

Mantle Network is an Ethereum-based L2 chain created by a decentralized autonomous organization (DAO) called BitDAO in November 2022.

Mantle is designed as a modular blockchain that specializes in specific blockchain function. Modular blockchains do not execute transactions, consensus, settlement, and storage within the same network layer.

For example, Mantle specializes in providing an EVM-compatible execution layer where developers can build applications for users to transact on.

Mantle uses the Ethereum mainnet as a consensus and settlement layer. Data availability is handled by an external layer created in collaboration with Ethereum scaling solution EigenLayer. Mantle will switch to the EigenDA chain for its data availability needs once the EigenDA mainnet is launched.

A History of Mantle: Relationship between Mantle, BitDAO and ByBit

It is important for investors to be aware of a crypto project’s history and affiliations before investing in their tokens. Let’s learn about the relationship between Mantle, BitDAO, and ByBit.

ByBit Contributes to BitDAO’s Treasury

ByBit is a centralized CEX founded in 2018 by Ben Zhou. As of March 29, 2024, ByBit was the third largest CEX based on 24-hour spot trading volume, behind Binance and Coinbase, and ByBit was also the second largest CEX based on 24-hour derivatives trading volume, behind Binance.

BitDAO was a DAO that was owned and governed by BIT token holders. ByBit was one of BitDAO’s early supporters alongside Pantera Capital, Dragonfly Capital, Founders Fund and Peter Theil.

ByBit pledged to contribute 0.25% of its futures trading volume to BitDAO’s treasury.

BitDAO Merges with Mantle

In May 2023, BitDAO announced that its token holders approved a proposal to merge BitDAO’s governance and treasury with the Mantle Network. The proposal also saw BitDAO and Mantle rebrand themselves under a single brand name – Mantle.

Furthermore, the project’s governance token was converted from BIT to MNT. ByBit said that its pledge to contribute 0.25% of its futures trading volume to the project’s treasury remains unchanged.

“BitDAO is planning to unify its brand and token under one brand and one token for long-term token holder prosperity and increased success for its core product, Mantle Network,” said Mantle in a blog post.

MNT Tokenomics

In this section, we discuss the MNT tokenomics and other important details about Mantle Network’s native token.

  • MNT was the 36th largest cryptocurrency in the world with a market cap of $3.78 billion, as of March 29, 2024.
  • MNT’s total and maximum supply stood at 6.219 billion tokens, CoinMarketCap data showed.
  • MNT’s circulating supply stood at 3.233 billion tokens or 52% of max supply, CoinMarketCap data showed.
  • MNT hit an all-time high of $1.48 on March 27, 2024.
  • MNT is used as a governance token.
  • MNT is also used to pay gas fees on the Mantle L2.
  • MNT is used as a community grants token.

MNT Price Analysis: Why Mantle is the Top-performing L2 token in 2024

Upbit Listing

Crypto tokens have shown a tendency to surge in price on news of listing on popular CEXs. On March 27, 2024, MNT token rose as much as 58.9% to a record high of $1.48 after listing on Upbit – the largest crypto exchange in South Korea, which contributes about 70% of total crypto trade volume in the nation.

According to Statista, South Korea is the third largest crypto market in the world. Meanwhile data compiled by Chainalysis showed that South Korea sees the majority of its crypto trading activity (68.9% in 2023) on CEXs.

Network Upgrade, Rewards Program

While MNT’s listing on Upbit pushed the token to surge to an all-time high in late March 2024, the project had momentum behind its back following a key network upgrade and incentive program introduced in the first quarter of 2024.

On March 15, 2024, Mantle announced the completion of its version 2 (v2) upgrade called the Tectonic upgrade. According to Mantle, the upgrade will enhance the L2 chain’s capacity to offer “some of the lowest gas fees among Ethereum layer 2 (L2) solutions” while increasing its interoperability with other EVM chains within the Optimism Stack ecosystem.

Additionally, Mantle also announced the launch of its reward program called Mantle Rewards Station on March 25, 2024. The program rewards MNT stakers with airdrops from Mantle ecosystem decentralized applications. At the time of writing, MNT stakers are rewarded points that can be redeemed for stablecoin protocol Ethena Finance’s native token ENA.

Looking Forward: Market Catalysts for Mantle

MNT tokens do not have any future token unlock schedules, according to Token Unlocks, which is a positive for the crypto. Typically, token unlocks are seen as bearish events for a crypto token as it allows insiders to sell their tokens in the open market.

However, as of March 29, 2024, only 52% of MNT’s max supply was in circulation. According to Mantle’s official website, 49% of MNT’s max supply is under the control of the Mantle Treasury. Distribution of these tokens will be decided by Mantle governance proposals.

Elsewhere, data compiled by CoinMarketCap showed that, at the time of writing, the MNT token was not listed on the two biggest CEXs in the world – Binance and Coinbase. Investors should keep an eye on the MNT listing announcements from these two CEX heavyweights.

The Bottom Line

Mantle is a promising Ethereum L2 chain that has the backing of one of the biggest CEXs in the world.

Additionally, Ethereum’s rollup-centric scaling plan is a strong tailwind supporting the growth of the Mantle ecosystem, as seen in the implementation of the Dencun upgrade, which is expected to drastically reduce gas fees on Ethereum L2.

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