What is the Mantra protocol? Will the OM price rebound?

The Dubai Virtual Assets Regulatory Authority (VARA) issued the world’s first decentralized finance (DeFi) platform Virtual Asset Service Provider (VASP) license to MANTRA Finance FZE in February this year, allowing it to operate as a virtual asset exchange and provide investment services.

This license is seen as a key support point for MANTRA’s expansion in the Middle East, especially providing a compliance foundation for its Real World Asset (RWA) tokenization strategy.

Around the same time, the OM token reached an all-time high of $9.17 on February 23, entering the top 50 in global cryptocurrency market capitalization.

Compliance Foundation and Strategic Collaboration

The positioning of MANTRA is not only as a technology-oriented public chain but also as a compliant bridge between traditional finance and on-chain assets. Its Layer 1 blockchain is designed specifically for RWA tokenization, meeting regulatory requirements through modular technology, supporting seamless access for developers and institutions.

This feature has attracted traditional giants. In early 2025, the UAE’s DAMAC Group announced the tokenization of real estate assets worth $1 billion through MANTRA, covering various fields such as hotels, residences, and data centers. The dual support of licenses and partnerships injects a boost to the OM token.

After the mainnet launch in October 2024, the daily increase of OM reached 20%. Users can earn RWA ecological rewards by staking OM and participate in governance decisions. Compliance has become the core label that distinguishes MANTRA from other RWA projects.

Crash Crisis and Trust Reconstruction

On April 13, the OM token experienced an epic crash. It plummeted from $5.21 to $0.50, with a market value evaporating by $5.5 billion within 90 minutes, triggering panic in the market. The MANTRA team attributed the cause to “extreme liquidation”—a large OM holder’s position on a centralized exchange triggered a forced liquidation, causing a chain reaction.

But the community’s doubts are rising. On-chain analysts found that before the crash, three wallets transferred millions of OM to OKX and Binance, with one transfer reaching 4.3 million (worth about $22 million at the time). Although Mantra CEO John Mullin urgently refuted the rumors and publicly disclosed the team’s locked wallet address to prove their innocence, a trust gap has already emerged.

To curb the crisis, the team destroyed 300 million OM tokens (16.5% of the total) on April 29, including allocations for itself and ecological partners. At the same time, governance reforms are being promoted, with plans to introduce a decentralized validator mechanism in an attempt to restore confidence through transparency.

Ecological Recovery and Exchange Benefits

May became a key turning point. MANTRA announced that the total value of RWA on the mainnet exceeded $119 million, validating the feasibility of its asset on-chain model. More importantly, liquidity benefits followed one after another: the mainnet OM token completed integration with Binance and was listed on Upbit, a leading exchange in South Korea.

Driven by this, the 24-hour trading volume of OM surged to $12.5 million, with the price increasing by 8% in a single day to $0.72.

The ecological expansion has also not stopped. MANTRA has reached a cooperation with WIN Investments for the tokenization of sports assets, further expanding the RWA scenarios.

Technical indicators are releasing positive signals: the 4-hour RSI has rebounded to 62, and the MACD has shown a bullish crossover, indicating that buying momentum is gradually accumulating.

OM token price prediction

Current OM’s Price Trend Presenting a high degree of uncertainty, market analysis shows significant divergence:

• Short-term (1-3 months): Oversold rebound and technical recovery dominate.
  At the beginning of May, OM fell below $0.40, with the Relative Strength Index (RSI) touching an extreme oversold area of 17.18.
  Historical patterns indicate that an RSI below 20 is often followed by a rebound. Resistance is focused on $0.75, and a breakthrough may test the psychological level of $1.0.
• Mid-term (end of 2025): Fundamentals and market sentiment play a game.
  Optimistic forecasts suggest that if the total value locked (TVL) in the Polkadot ecosystem grows by 50% and RWA products are successfully implemented, OM could return above $2.0.
  Conservative views warn that if investor confidence recovery lags, prices may hover around $0.21.
• Long-term (2030): The ultimate test of RWA track potential.
  If the scale of tokenized assets reaches trillions and OM becomes the core token of the Polkadot ecosystem, prices may challenge the high of $21. However, caution is needed regarding regulatory changes and the recurrence of black swan liquidation risks.

Future Outlook

Compliance licenses are the shield of MANTRA, while the tokenization of real-world assets is its sword. As $119 million in RWA assets circulate on the chain, this project is actively mending the trust torn apart by the collapse in April. Price Prediction The divergence reflects the collective anxiety of the crypto market: in the short term, a technical Rebound is anticipated; in the medium term, a bet on ecological recovery; and in the long term, a wager on whether the RWA revolution can rewrite financial rules. The OM token, however, is just a microcosm of this experiment.