Mantra (OM) and RWA Token Expansion Trend

Mantra (OM) was the key driver of the recent RWA token expansion trend. Despite slow movements in other altcoins, OM is on fire, becoming one of the biggest gainers among altcoins.

Mantra (OM) is the biggest gainer in the RWA sector and one of the top performers of the 2025 bull cycle. OM is rallying despite corrections in other blue-chip assets. While the RWA narrative partly explains the excitement around OM, the token has achieved cult status, behaving more like a meme token.

OM had a rally in 2025 after missing the 2021 bull cycle, where it saw only modest gains. The project outperforms all other narratives and even meme tokens. However, enthusiasm has coincided with selling from smart money wallets.
Smart wallets unloaded the Ethereum version of OM, realizing profits in the past month, which presents an opportunity for exit liquidity but poses a risk of significant downturns. OM has also been moving to exchanges during this rally.

> $OM is up 185% in the past 30 days, but on-chain tells a different story… 👀
> 📉 Smart Money wallets unloaded $42.5M worth of $OM in the past month—the highest on Ethereum.
> 🔄 $590M moved from on-chain wallets to CEXs in the past 7 days, usually an indicator of selling….
> — Alphanomics 💧 (@Alphanomics_io) February 24, 2025

OM has increased up to 30,000% from its lows, raising questions about the sustainability of its rally. The Mantra project aims to build a Layer 1 chain focused on tokenization, but even the involvement of major financial firms doesn’t fully explain the token’s impressive performance. OM is on track to surpass Chainlink (LINK) as the leading RWA token, holding a valuation above $560M.

Current open interest trends suggest the OM rally could be nearing its end. Traders suspect directed market maker activity, indicating a possible drawdown. Weighted open interest funding levels have shifted to record negative levels, indicating extreme risk for OM at its current price position.

Since November 2024, OM has experienced no significant corrections, maintaining a pattern of sideways movement followed by vertical rallies. Recently, the token has seen a record flow to exchanges, indicating a potential upcoming correction.

OM tokens have peaked in netflow to exchanges, suggesting selling pressure may lead to a price correction.

As of February 24, OM demonstrates heightened activity as a multi-chain token. According to Bubblemaps data, OM is forming wallet clusters with high-volume transfers. Additionally, OM is predominantly traded on Binance and Gate.io. One immediate reason for the OM rally is the integration of the native Mantra L1 chain on the Gate exchange, which boosted volumes and added to recent hype.

One factor contributing to OM’s high value at $8.18 is its limited supply of under 1B tokens. Over 60% of OM tokens are unlocked, with slow linear unlocks absorbed by the market.

OM is part of the Ethereum ecosystem, enhancing its accessibility and tradability. While Mantra operates as a blockchain, the focus is on the ERC-20 tradable and liquid token version. OM boasts 37,612 users on Ethereum and is well-represented on centralized exchanges.

OM Boosted by Airdrop Promises

The current short-term interest in OM tokens may be linked to an upcoming airdrop event. Previously launched with $11M VC funding, OM aims to engage a broader community.

Mantra is executing an airdrop with small-scale missions associated with other chains, planning an additional 50M OM to be airdropped in March, targeting holders and stakers of ATOM tokens, and additional rewards from incentivized testnet versions.

The airdrop is currently in its Sybil-slaying phase, allowing users to self-report for multi-accounting to receive a fraction of the airdrop. Failure to self-report could result in the forfeiture of all rewards. Mass addresses, farming bots, or repetitive automated activities may be flagged as potential Sybil attacks.

The expected airdrop may exert additional price pressure on OM, potentially diminishing the token’s appeal. However, the airdrop remains relatively small compared to the asset’s circulating supply, and new OM tokens will enter the market following a vesting period.