Manta Network's TVL Drops by 52% in 7 Days
Layer-2 protocol Manta Network has witnessed over a 52% decrease in Total Value Locked (TVL) shortly after enabling asset withdrawals from staking.
TVL Manta Network drops by 52% in 7 days
According to data from DefiLlama, in the past week, the Total Value Locked (TVL) on Manta Network's layer-2 (MANTA) plummeted by 52%.
Significantly, this decline occurred immediately after Manta concluded its New Paradigm program on March 26, allowing users to withdraw STONE tokens from StakeStone and wUSDM from Mountain Protocol. Prior to this timeframe, Manta's TVL stood at $497 million USD, but subsequently dropped to $245 million USD.
Fluctuations in Manta Network's TVL. Source: DefiLlama (04/02/2024)
The New Paradigm initiative since December 2023 incentivized investors to transfer assets like liquid staking ETH or interest-bearing stablecoins such as STONE and wUSDM to Manta to qualify for rewards. However, users could only withdraw assets after the New Paradigm program ended on March 26.
Kenny Li, co-founder of Manta Network, shared with DLNews that the project had anticipated a decrease in TVL following the conclusion of the New Paradigm program.
Nevertheless, the co-founder affirmed that the project is preparing plans to attract users back. Alongside initiatives like Renew Paradigm or Restaking Paradigm, which offer rewards for asset depositors, Li announced they are also working on introducing new functionalities to the ecosystem, although specific details cannot yet be disclosed.
Since late March, the governance token price of MANTA on Manta Network has also decreased from $3.4 USD to $2.65 USD, marking a 22% decline.
1-hour chart of MANTA/USDT pair on Binance at 07:35 PM on April 2, 2024
