Mantle, a layer 2 scaling solution for Ethereum, launched its mainnet on Monday this week. Since the launch, Mantle’s governance and utility token has increased by around 4% in price. This is a greater increase than the native tokens of other Ethereum layer 2 solutions like Arbitrum and Optimism have seen over the past day. The price increase of Mantle’s token reflects positive sentiment around the mainnet launch and its potential to drive further adoption of Mantle as a scaling solution.
Mantle, an Ethereum layer-2 scaling solution, launched its mainnet on Monday. Since then, Mantle’s utility and governance token MNT has jumped 4% in price to currently sit at 52 cents. This outpaces the native tokens of other major layers 2 networks like Arbitrum (ARB) and Optimism (OP), which have declined over the past 24 hours.
MNT is used to pay for gas fees on the Mantle network and also grants governance power to token holders. It debuted at 48 cents when the mainnet launched on Monday.
Unlike Arbitrum and Optimism which are more traditional layer 2 chains, Mantle incorporates EigenLayer’s EigenDA technology resulting in a unique 3-layer blockchain structure. This modular architecture aims to set Mantle apart from other layer 2 competitors. The increase in MNT price reflects positive sentiment around Mantle’s mainnet launch and its potential as a scaling solution for Ethereum.
Mantle uses a 3-layer structure where Ethereum handles settlement and consensus, EigenDA provides data availability, and the Mantle Network serves as the execution layer, as analyst Sandra Leow explained.
On May 19th, BitDAO, the decentralized organization with the largest treasury in crypto, rebranded as Mantle. As part of this, they converted the BIT token to the new MNT token, aligning with a “One brand, One token” model.
Exchanges Bybit, MEXC, and Huobi are supporting the BIT to MNT conversion. Bybit holds over 15% of the total MNT supply, making them the 3rd largest holder. Sister firms Jump Capital and Jump Trading have together accumulated over $5.3 million in MNT tokens through multiple wallet transactions converting from BIT to MNT after the rebrand, according to blockchain analytics platform Nansen.
Jump Trading did not respond to a request for comment on their MNT holdings and support of the Mantle rebrand.
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