Mantra price is on the verge of a massive breakout as staking yield falls

Mantra price rose for three consecutive days, becoming one of the best-performing cryptocurrencies even as many other cryptocurrencies fell.

Mantra (OM) token rose to $4, slightly above this week’s low. This recovery increased the token’s market value to over $3.8 billion.

The rise occurred even when the staking yield dropped to 15.4%. According to StakingRewards, this represents a decline of over 12% in the last 24 hours. This decline occurred despite the staking market value increasing by over 5% to $2.4 billion.

Still, Mantra offers one of the highest staking rewards in the crypto industry. For example, Polygon returns 5.6%, while Ethereum (ETH) and Solana (SOL) return 3.2% and 6%, respectively.

Staking involves transferring tokens to help secure a network. Returns generally come from fees earned by the network and are distributed monthly.

Mantra’s high staking returns have contributed to it being one of the best-performing cryptocurrencies this year, with its price rising over 7,200% from its lowest point.

This rally intensified recently when the network launched MantraChain, a layer-1 network for building Real World Asset tokenization products. MantraChain aims to become the main blockchain for developers in the rapidly growing tokenization sector.

According to its developers, the chain addresses the blockchain trilogy of decentralization, security and scalability by leveraging the Cosmos SDK, one of the most popular frameworks in the crypto industry.

The tokenization industry has grown significantly in recent years. For example, Ondo Finance (ONDO), a leading tokenization project, has accumulated over $600 million in assets. Other tokenized assets, such as BlackRock’s BUIDL and Franklin Templeton’s FOBXX, have total assets of over $1 billion.

Mantra price is preparing a big move forward Mantra price chart | Source: crypto.news

The daily chart shows that the OM price has been consolidating in recent weeks following its vertical rise in November.

This consolidation phase forms part of a bullish pennant chart pattern, which is a popular continuation signal. The pattern consists of a long vertical line followed by a symmetrical triangle. Assets often experience strong breakouts as the triangle approaches its confluence.

If this pattern continues, OM price could recover and initially rise to its year-to-date high of $4.5. A move above this level could signal further gains and potentially push the price to the next psychological level at $5. However, a decline below the $3.5 support level will invalidate the bullish view.