On Monday, Mantle, the native token of the Ethereum Layer 2 network, surged by more than 20% to hit a record high of $0.948. The increase in price coincides with rising interest in both the larger Ethereum Layer 2 ecosystem and Mantle’s applications.
Joe Caselin, head of institutional marketing at BIT, a cryptocurrencycurrency exchange, claims that demand has been significantly fueled by Mantle’s “double-dose” staking incentives program. Users can earn native token rewards with Mantle Staked Ethereum (mETH) of up to 7.2%, which is much more than with competing staking protocols.
“Developers are actively growing Mantle’s DeFi ecosystem, improving mETH’s usefulness across other apps, and also securing partnerships with projects that appeal to institutional stakers as users get a taste of the mETH,” stated Caselin.
Since opening its mainnet in July 2022, the Layer 2 network has grown quickly, ranking seventh among L2 chains with a total value locked of over $219 million based on the most recent CoinGecko data.
Industry insiders claim that Mantle has profited from the increased interest in Ethereum Layer 2 solutions. “The market’s increasing interest in Layer 2 is reflected in the Mantle token’s soaring price,” stated Greta Yuan of institutional digital asset business VDX.
Another possible stimulus is the expected introduction of Ethereum ETFs in the United States, according to Caselin. “There’s a growing interest in liquid staking protocols as the most productive way to hold ETH in anticipation of positive news,” he said, adding that analysts are now certain that the approval of the ETH ETF has the same odds as a coin flip.
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