Mantle has recently launched a new liquid staking protocol (LSP) on the Ethereum mainnet. This innovative approach to network staking introduces a non-custodial system that allows users to deposit Ethereum (ETH) and participate in network staking through validator nodes. Participants receive Mantle-staked ether (mETH) as a token representing their stake, which aims to decentralize the process significantly.
This move by Mantle comes after a successful deployment of a Layer 2 network, and the protocol offers a fresh perspective on network staking. With the introduction of a non-custodial system, users can now stake their ETH without relying on a third party to hold their assets. This approach to network staking has the potential to revolutionize the staking process and make it more accessible to a wider audience.
Challenging The Power Players
Mantle aims to tackle the issue of growing concentration of staked ETH in the hands of dominant providers such as Lido, Coinbase, and Binance. The concentration is driven by name recognition and user preference. Mantle’s chief strategist, Jordi Alexander, believes that the issue can be countered by promoting mETH in the Liquid Staking and DeFi (LSDfi) ecosystem. The goal is to provide diverse options for users and improve capital efficiency to sustain yields. Mantle’s DAO has started staking ETH from its treasury following the MIP-25 governance proposal. This move adds to its $80 million in ETH staked with Lido Finance. By challenging the major stakeholders, Mantle is promoting decentralization and providing more options for users.
Mantle’s Financial Strength and Warchest
Mantle’s entry into the liquid staking arena is noteworthy due to its substantial financial footprint in the crypto market. With assets amounting to $470 million in ether and an additional $200 million in stablecoins, Mantle’s approach could significantly impact the decentralized finance landscape on the Ethereum network. Their strategy represents a shift towards a more inclusive and decentralized staking environment.
As a result, Mantle (MNT) has gained positive momentum in the last 24 hours, despite opening the day in a bearish trend. During the rally, bulls drove the MNT price from a low of $0.5406 to a 6-month high of $0.5677 before a slight drop. At press time, MNT was trading for $0.5651, a 4.61% increase over the previous day.
MNT’s market capitalization and 24-hour trading volume increased by 4.26% and 30.59%, respectively, to $1,767,894,161 and $133,598,064. This price and trading volume increase implies that investors and traders have grown interested in and confident in the staking approach. As more people participate in Mantle’s decentralized staking ecosystem, the bullish trend is anticipated to propel MNT’s price upwards.