Mantra DAO Crashes 89% – What Triggered the Collapse?
The Mantra DAO (OM) token has crashed over 89% in the last 24 hours, wiping out millions in market value and sending shockwaves through the DeFi sector. From a price above $6 to a sudden plunge below $0.50, here’s everything we know about what caused the collapse.
Massive Sell-Off by Smart Money
On-chain data shows that major wallets—often referred to as “smart money”—unloaded over $42.5 million in OM tokens in recent weeks. Over $590 million worth of OM was transferred to centralized exchanges in the lead-up to the crash, signaling an intense wave of selling pressure (Mitrade).
Technical Overheat: RSI Hits 87
Prior to the crash, OM’s technicals were flashing red. The Relative Strength Index (RSI) surged to 87, placing the token firmly in overbought territory. Traders had warned of a looming correction if momentum didn’t cool off (Crypto.News).
DAO Treasury Liquidity Declines
The broader DAO ecosystem has been hit hard by market-wide sell-offs. DAO treasuries dropped from $42.5 billion in March 2024 to $14.6 billion today, adding macro pressure to DAO-native tokens like OM (Cryptopolitan).
Airdrop Concerns Fuel Sell-Off
Mantra DAO’s $50 million OM token airdrop raised serious concerns about market dilution. With a large portion of tokens hitting wallets, many recipients opted to cash out immediately, compounding the downward pressure (OneSafe).
Final Thoughts
OM’s crash highlights the fragility of DeFi momentum plays and the risks surrounding token unlocks, airdrops, and speculative hype. Whether this is a short-term capitulation or a long-term breakdown remains to be seen—but one thing is clear: Mantra DAO just became a case study in how fast DeFi narratives can collapse.
🔗 Watch more coverage: The Mantra Finance Crash ⚠️ OM Crypto Token Analysis (YouTube)