The value of the Mantra (OM) cryptocurrency has experienced a significant decline this week, following the trend of other digital assets such as Ethereum, Solana, and Cardano.
OM dropped to a low of $0.8160 on Friday, marking a decrease of more than 25% from its peak earlier in the week. This decline occurred despite some positive developments in the ecosystem. The developers announced that the OM token had been included in Swissborg’s Real World Asset (RWA) thematic basket.
The RWA basket comprises various tokens from the industry, including Synthetix Network, VeChain, Chainlink, Maker, and Polymesh Network. Swissborg, a major player in the cryptocurrency sector, boasts nearly 800,000 users and assets exceeding $1.26 billion, with its token’s market cap surpassing $187 million.
Conversely, Mantra’s assets have seen a significant increase in recent weeks, reaching over $46.3 million, a substantial rise from the $7 million at the beginning of the year. Additionally, the company has recently expanded its operations to the UAE.
Mantra, with a market cap exceeding $650 million, holds a prominent position in the tokenization industry. Its platform facilitates the fractionalization and tokenization of real-world assets (RWA), a sector projected to reach over $10 trillion in value in the coming years.
Despite hitting an all-time high of $1.0960 earlier this month, Mantra’s OM token has experienced a downturn of more than 25% amid a broader sell-off of altcoins. It has fallen below the crucial support level at $1, its previous peak on June 5.
Furthermore, the token has dipped below both the 50-day and 100-day moving averages, indicating a bearish trend. While currently trading at $0.8095, it has struggled to break below this level since June 3, which was a notable swing high in April and May. A breach of this support level could lead to further downside, potentially dropping to $0.7620.
In light of these developments, the market outlook for Mantra remains uncertain, with potential implications for investors and traders.