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Mantra has just gone through a crash that has wiped out most of its value. Here’s how on-chain metrics have changed during this collapse.
Mantra Has Seen A Reaction In Several On-Chain Indicators
In a new post on X, the on-chain analytics firm Glassnode has discussed about the sudden price plunge that Mantra saw in the past day. During this crash, the asset’s value went from above $6 to around $0.50 in the matter of a few hours.
First, here is how the Exchange Inflow (that is, the total amount of OM being transferred to centralized exchanges) changed along with this volatile move:
As displayed in the above graph, Mantra interestingly didn’t see any large spikes in the indicator in the leadup to the crash. Investors use exchanges for selling-related purposes, so large deposits tend to appear before intense volatility.
In OM’s case, though, it seems there were no such inflows. Large deposits have still occurred in the past day, but they only came after the collapse was already over. These late inflows likely corresponded to reactionary moves from the investors.
The opposite indicator, the Exchange Outflow, also saw spikes following the price plummet, as the below chart shows.
While the largest withdrawals only came after the crash was over, there were some significant outflows also made before the low was reached. “This could reflect withdrawals post-liquidation, opportunistic buys followed by self-custody, or exchanges reducing exposure,” explains the analytics firm.
A metric that did register a change ahead of time was the percentage of the Mantra supply held by the top 1% addresses.
The top 1% addresses reduced their supply share from 96.4% to 95.6% before the OM collapse took place. “While not the largest drop in recent months, it’s notable,” notes Glassnode.
Another indicator that showcases the market panic is the Number of Transfers, which observed a huge spike as OM went through its volatility.
The Number of Transfers peaked at around 1,400 inside a 10-minute window. Given the scale involved, it’s likely that a large amount of traders were responsible for these moves.
And indeed, the trend in the Active Addresses, a metric keeping track of the number of addresses becoming involved in transactions on the chain, would confirm this.
From the chart, it’s apparent that the Active Addresses mimicked the trend in the Number of Transfers very closely, so the Mantra selloff wasn’t contained to a few addresses at all.
OM Price
At the time of writing, Mantra is trading around $0.50, down more than 91% in the past day.
Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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