Mantra Network Set to Challenge Ethereum L1 Dominance — Should You Buy OM Tokens?

NOIDA (CoinChapter.com) — Blockchain project MANTRA (OM) price reached its highest level since Dec. 2021 after the DeFi platform’s proposal to make OM its native token passed with overwhelming support. In other words, OM is now challenging Ethereum, the leading layer-one project by market cap.

Notably, MANTRA is a blockchain project that is built around the MANTRA DAO, a community-governed DeFi platform that offers users a range of financial services, including staking, lending, and decentralized governance.

Some of the products that MANTRA offers include MANTRA Finance, for trading and earning on crypto and tokenized assets, and MANTRA Chain, for building Web3 applications

MANTRA Community Approves OM As Native L1 Token

After a recent vote, the MANTRA community made a pivotal decision regarding its native token. Opting against the introduction of a new token, AUM, the community voted in favor of the OM token becoming the native L1 token.

The call for changing the native token for the MANTRA Network resulted in widespread confusion, with existing OM holders worried that their token holdings’ value would be depleted. The community, therefore, voted to keep OM as the native token to simplify the MANTRA ecosystem.

Additionally, keeping OM as the native token would allow holders to take advantage of the hype around the MANTRA mainnet launch. A new native token, AUM, in this case, would have diminished the bullish impact of the main net launch for both tokens.

After voting ended, the decision to promote the OM token as the main L1 token once the main net goes live passed with 99.95% of the votes. The adoption of OM as the native L1 token opens up new use cases for the MANTRA token, such as in governance and in utility.

Furthermore, the decision would likely attract more buyers to the market, favoring the MANTRA network token. Given the strong community support, it is likely OM supporters would be pushing for a spot ETF for the MANTRA token.

OM Price Dips Post Adoption News

Meanwhile, OM’s price failed to react to the bullish cue. The MANTRA token dropped over 23% after reaching $0.192 on Feb. 4, OM price’s highest level since Dec. 2021.

The price dip indicates that many in the MANTRA community booked profits after voting for OM as the only native token for the DeFi platform. However, OM price has had a very bullish run since Dec. 2023, spiking nearly 714% from Dec. 4’s low near $.0236 to reach its recent high on Feb. 4.

If the MANTRA token price continues to fall, OM would likely end up testing the support near $0.125. Moreover, breaching the immediate support might force OM price to drop to the 50-day EMA (purple wave) support near $0.085 before recovering.

However, news of the MANTRA Network adopting OM as its native L1 token might help bulls push OM price to the resistance near $0.193. Flipping the immediate resistance might help propel the crypto token to the resistance near $0.234 before corrections pare gains.

The RSI for OM was marginally overbought, scoring 70.11 on the daily charts.