Mantra, the popular blockchain network for real-world asset tokenization, has risen for three consecutive weeks, paring losses suffered in July and August.
Mantra (OM) rose to $1.24, its highest level since July 29, and is 13% below its all-time high of $1.4145. It is one of the best-performing cryptocurrencies, up over 4,000% from its January lows.
Mantra’s rise has been driven by the growing demand for real-world asset tokenization, which is considered the next big thing in the crypto industry. For example, Ondo Finance (ONDO), a key player in the industry, has attracted over $600 million in assets.
Similarly, Blackrock’s BUIDL fund has attracted over $500 million in assets, while the Franklin OnChain US Government Money Market Fund holds $427 million.
Mantra also jumped due to its strong staking yield of 22.2%, which is higher than the yield of most cryptocurrencies including (SOL) and Ethereum (ETH).
Mantra staking yield | Source: StakingRewards
The latest catalyst for Mantra’s rise is the upcoming launch of its Wallet mainnet, a significant development as the network aims to become the preferred registry for real-world assets.
The chain will offer a verifiable network for security and stability, with enterprise-grade capabilities that allow companies of all sizes to efficiently allocate capital. The chain will also provide global access to tokens, bridging traditional and decentralized finance.
Although the final date for the Mantra Chain launch has not yet been announced, the developers have hinted that it will happen in October. Cryptocurrencies usually rally before a major event and there is a risk of a pullback afterwards.
Additionally, the OM token has surged due to the ongoing Mantra Zone competition where winners will share 50 million tokens, currently valued at over $60 million.
Mantra targets new all-time high Mantra price chart | Source: TradingView
On the weekly chart, Mantra recently retested the key support at $0.8828, which coincided with its 2021 swing high. A breakout and retest is one of the most popular continuation signals. OM remained above the 50-week moving average, which suggests that the bulls are in control.
However, the Percentage Price Oscillator and the Relative Strength Index have formed a bearish divergence pattern.
Therefore, Mantra is likely to rise and retest the all-time high at $1.4145 before resuming the downtrend. If it flips this resistance level, further gains will be confirmed, which will invalidate the double top pattern.