State of Mantle Q4 2024

Key Insights

• Mantle's Total Value Locked (TVL) grew by ~35.82% QoQ and ~354.19% YoY, driven by DeFi integrations and heightened ecosystem activity​.
• The mETH Protocol solidified its position as the fourth-largest Ethereum liquid staking token, reaching a peak TVL of ~$2.19 billion within its first year​.
• Mantle’s treasury value increased by ~54.00% in Q4, rising from ~$3.00 billion in Q3 to ~$4.62 billion, largely driven by MNT token price appreciation in Q4. Notably, MNT comprised ~88.85% of the treasury’s value at the end of 2024.
• The Mantle Rewards Station remained crucial in Q4, while new programs like the COOK Feast offered holders the chance to earn a share of 200 cmETH tokens.
• Mantle Network integrated key technologies like ERC-7683 and Chainlink CCIP to enhance cross-chain interoperability, cementing a role in DeFi innovation​.

Primer

Mantle is focused on building a sustainable hub for onchain finance by combining institutional-grade infrastructure with blockchain technology. At the heart of Mantle is its community-owned treasury, which, with ~$4.00 billion in assets, actively funds innovative products and fosters the growth of ecosystem partners. Mantle drives financial utility and liquidity through core offerings like Mantle Network, mETH Protocol, and Ignition FBTC, enabling the development of solutions that enhance sustainable yield, deep liquidity, and composability across DeFi.

Mantle Network (MNT) is a Layer-2 (L2) scaling solution for Ethereum built using OP Stack Bedrock. The EVM-compatible network employs an optimistic rollup mechanism to batch multiple transactions into a single transaction on the Ethereum mainnet (Layer-1). Mantle Network aims to offer lower gas fees, reduced latency, and higher throughput than Ethereum. The project’s ecosystem primarily consists of restaking, gaming, DeFi, and NFT-related protocols, which are anchored by its large community-owned treasury. Mantle’s treasury is a major catalyst for asset partner growth, paving the way for protocols such as Ethena USDe, Ondo USDY, Agora AUSD, and EigenLayer restaking to provide enhanced yield options and liquidity solutions. Mantle Network aims to be the "Liquidity Chain" to drive capital efficiency in the onchain economy through modular architecture, data availability solutions, and zero-knowledge proofs.

Mantle’s other core product offerings include:

• mETH Protocol: Mantle’s liquid staking and restaking protocol for ETH opens up new possibilities for users to maximize asset potential.
• Ignition FBTC: A decentralized Bitcoin solution that combines Bitcoin's security with the composability of DeFi. It bridges BTC into the Web3 economy and unlocks new financial opportunities.

Upcoming product offerings include the Mantle Enhanced Index Fund, Mantle Banking, and MantleX.

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Key MetricsFinancial OverviewMarket Cap and Price

In Q4 2024, Mantle Network’s native token, MNT, grew to a market cap of ~$4.21 billion, experiencing an increase of ~106.67% QoQ (from ~$2.04 billion to ~$4.21 billion) or ~109.05% YoY (from ~$2.02 billion to ~$4.21 billion). Similarly, MNT’s price showed positive price action, increasing ~100.53% QoQ (from ~$0.62 to ~$1.25) or ~94.56% YoY (from ~$0.64 to ~$1.25). This market cap and token price appreciation was largely catalyzed by the successful launch of the cmETH token, increased adoption of the mETH Protocol, and the implementation of Mantle’s enhanced staking and governance mechanisms. Additionally, the integration of innovative DeFi solutions and growing user engagement across the ecosystem further amplified investor confidence.

Total Value Locked (TVL)

Mantle Network's TVL demonstrated significant growth during Q4 2024. Between Nov. 7, 2024, and Dec. 4, 2024, Mantle’s TVL increased from ~$1.69 billion to ~$2.16 billion, representing a ~27.81% QoQ increase. This growth reflects an expanding user base and heightened activity throughout the ecosystem, specifically within the network's DeFi sector through key products such as mETH Protocol and the cmETH token. mETH Protocol emerged as the fourth-largest Ethereum liquid staking token within its first year, reaching a peak TVL of ~$2.19 billion. Incubated by Mantle’s team, the protocol was deployed on Ethereum while remaining governed by Mantle. This governance model facilitated seamless integration with the broader Ethereum ecosystem, leveraging Mantle's governance structure.

Breaking down DeFi TVL growth by protocol, Mantle Network’s performance in Q4 showcased significant contributions from various DeFi platforms within its ecosystem. Notable protocols set the trend with TVL increases, such as Pendle (up ~280.21% QoQ, from ~$36.41 million in Q3 to ~$138.43 million in Q4), Merchant Moe (up ~35.67% QoQ, from ~$90.84 million in Q3 to ~$123.24 million in Q4), and AGNI (up ~6.20% QoQ, from ~$98.53 million in Q3 to ~$104.64 million in Q4). Each protocol contributed unique functionalities, ranging from liquid staking solutions to yield optimization tools, that collectively strengthened Mantle’s ecosystem. As of Dec. 31, 2024, Mantle Network recorded a cumulative DeFi TVL of ~$731.06 million, a ~35.82% increase QoQ (from ~$538.26 million to ~$731.06 million), or a ~354.19% increase YoY (from ~$160.96 million to ~$731.06 million).

Network OverviewTreasury Value and Holdings

Quarter-over-quarter, Mantle’s total treasury holdings increased 52.56%, from $2.57 billion in Q3 to $3.93 billion in Q4. Mantle's treasury in Q4 was largely dominated by MNT, which constituted ~88.85% of the total holdings (~$3.49 billion). The second and third-largest positions were mETH and WETH at ~4.43% (~$174.03 million) and ~2.65% (~$103.82 million), respectively. Further allocations included "Other" assets (~2.17%, ~$85.17 million), USDE (~1.15%, ~$45.09 million), and the addition of COOK to Mantle’s treasury in Q4 (~0.76%, ~$29.65 million). This composition highlights Mantle’s dependence on its native token, MNT, as the core of its treasury, complemented by allocations to mETH, wETH, and “Other” assets (including USDC, USDY, and APEX) to ensure liquidity and ecosystem growth.

A further breakdown of token holdings is provided below:

• MNT Holdings: Increased by ~83.35% QoQ (from $1.90 billion to ~$3.49 billion)
• mETH Holdings: Decreased by ~67.07% QoQ (from $528.51 million to ~$174.03 million)
• wETH Holdings: Increased by ~67.37% QoQ (from $62.03 million to ~$103.82 million)
• “Other” Holdings: Increased by ~148.73% QoQ (from $34.24 million to ~$85.17 million)
• USDE Holdings: Increased by ~95.85% QoQ (from $23.02 million to ~$45.09 million)
• COOK Holdings: QoQ change N/A; allocated a total of ~$29.65 million, beginning in Q4.

As of Dec. 31, 2024, Mantle’s treasury ranked the third largest across blockchain networks, according to DeFiLlama, showcasing its strong financial position and ability to support long-term ecosystem initiatives.

Technology Advancements

Mantle Network introduced several updates throughout Q4 to enhance its network, integrate DeFi innovations, and improve technological capabilities.

ERC-7683 Support and CCIP Integration

Mantle Network announced support for the ERC-7683 standard on Nov. 7, 2024. This cross-chain messaging standard addresses liquidity fragmentation across blockchain networks by enabling intent-based systems. Integrating ERC-7683 with Mantle Network’s Chain Abstraction (ChA) mechanism simplifies cross-chain interactions and liquidity management, positioning the network to offer a more cohesive user experience.

In addition, Mantle Network integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) on Dec. 3, 2024, to further enhance its cross-chain functionality. This integration is underpinned by Chainlink’s decentralized oracle networks, offering Mantle an infrastructure for secure data and asset transfers. CCIP enables programmable token transfers and arbitrary messaging, facilitating multi-step transactions across blockchain ecosystems. The protocol’s extendable design ensures compatibility with future advancements, reducing switching costs as cross-chain technology evolves. These enhancements position Mantle Network to support innovative applications and improve interoperability across the DeFi landscape.

OP Succinct Implementation

On Dec. 19, 2024, Mantle Network introduced OP Succinct, an L2 scaling solution that combines Succinct’s zkVM with the modularity of the OP Stack. As a result, Mantle transitioned from optimistic rollups to ZK rollups. This transition reduced withdrawal finality to one hour, improving efficiency and reliability while maintaining compatibility with EVM tools.

Implementing OP Succinct addresses common challenges faced by many L2s, including scalability and transaction finality. Adopting Succinct Processor 1 (SP1) modular architecture strengthens Mantle Network’s alignment with Ethereum’s security standards and provides infrastructure improvements that support faster transaction confirmations and enhanced security.

Security Enhancements

The integration of Safe{Core} and Safe{Wallet} multi-signature solutions on Oct. 9, 2024, introduced advanced asset management tools, allowing users to secure high-value transactions with multiple authorization layers.

To mitigate risks, Mantle issued warnings about phishing attempts and impersonation accounts targeting its community, highlighting a proactive approach to user protection.

Mantle also collaborated with BlockSec to enhance protocol-level security and launched cmETH, further ensuring the integrity of core protocols and user assets while providing a secure and reliable environment for its users and developers.

Ecosystem OverviewCommunity Events, Campaigns, and Incentive Programs

Throughout Q4, Mantle continued to organize community events and campaigns designed to boost engagement, educate users, and foster a sense of community within the ecosystem.

On Oct. 1, 2024, the first wave of Bybit’s WSOT DEX Wave competition was launched. The event was positioned as a "Web3 talent show" and the "world's first Web3 Idol" on Mantle Network. This event showcased ~100 Web3 projects across ~30 blockchain platforms, offering participants a chance to compete for a 1 million MNT prize pool. Public voting, a core element of the competition, allowed users to contribute voting points to up to three projects daily.

On Oct. 11, 2024, Mantle Network launched the final season of the Mantle AI Fest: CH(AI)N REACTION, in collaboration with FIDE AI and Layer3. Participants engaged in a series of quests to claim a share of the 100,000 MNT and 10 million FIDE token prize pool. The event featured two quest types: (i) One-Time Tasks, offering a 50,000 MNT reward for activities such as following Mantle and FIDE AI on social media, and (ii) Recurring Challenge Tasks, distributing 50,000 MNT and 10 million FIDE to top performers in the Range FIDE(r) volatility game. The volatility competition encouraged players to predict asset price boundaries while completing offchain social tasks. Concluding on Oct. 25, 2024, the event drove ~2 million processed transactions and ~180,000 active users.

On Nov. 26, 2024, Mantle Network introduced the Mantle DeFi Fest, a month-long initiative to enhance community engagement and showcase its expanding DeFi ecosystem. The event, which concluded on Dec. 24, 2024, offered a 1 million MNT prize pool split between a lottery (400,000 MNT) and Layer3 Quests (600,000 MNT). It commenced with a Community Vote, allowing users to select eight standout DeFi protocols to advance. The second phase, Layer3 Quests, encouraged users to interact with chosen protocols through various DeFi activities. A bonus pool of 320,000 MNT was also available for users engaging with unselected protocols.

On Dec. 6, 2024, Mantle Network partnered with Ethena Labs to distribute 4 million ENA tokens through the Mantle Rewards Station. This three-month campaign, running from Dec. 6, 2024, to March 6, 2025, incentivizes users to lock MNT tokens in exchange for ENA rewards, strengthening relationships between different tokens within the ecosystem. Five days later, on Dec. 11, 2024, Mantle Network announced the addition of EIGEN to the Mantle Rewards Station. This offering, available until March 11, 2025, allows users to allocate locked MNT tokens in an active pool to earn EIGEN. The Mantle Rewards Station encourages longer lock-in periods by offering a fixed lock-in multiplier, ranging from 1x for 0 days locked to 3x for 300 days locked.

Lastly, the network introduced time-limited programs in Q4, such as the MNT Rewards Booster (offered as an event by the Mantle Rewards Station) and an extended phase of the Yield Lab. These initiatives aimed to boost participation during the holiday season, driving engagement with Mantle Network’s DeFi offerings.

Educational Initiatives

Along with community events and campaigns, Mantle reinforced engagement through educational programs in Q4. On Oct. 9, 2024, the MNT Buildathon, a global online early-stage builder program backed by Mantle, offered two avenues for community innovation. The ConInfra (Consumer-Infrastructure) pathway allowed users to build the foundation for consumer applications, while the ConCon (Consumer-Consumer) track streamlined front-end user development of decentralized applications. The Buildathon featured $150,000 in prizes, mentorship opportunities, and access to developer tools.

Additionally, Mantle Network introduced "Deep Dives" sessions on Mantle’s Discord server with various partners. These included discussions with Web3 entities such as Community Gaming (Oct. 23, 2024), and Demexchange (Nov. 27, 2024). These sessions provided insights into different aspects of the Mantle ecosystem, aiming to help users make informed decisions about their participation.

Methamorphosis Season 2

On Oct. 30, 2024, mETH Protocol launched Methamorphosis Season 2, the second phase of its multi-protocol incentive program designed to boost engagement with the mETH and cmETH tokens across various DeFi protocols on Mantle Network.

Methamorphosis Season 2 is built upon the foundation of Season 1, with a greater emphasis on restaking and expanding ecosystem integration. While Season 1 enabled mETH holders to secure their share of COOK, mETH Protocol's governance token, Season 2 shifts focus to cmETH.

The season includes 30 participating protocols, such as FusionX, iZUMi Finance, and TheTanuts Finance, and integrated infrastructure partners like IntoTheBlock and Veda to streamline yield opportunities. Powder rewards were restructured to offer 10-40 Powder per day for various activities, with cmETH incentivized liquidity pools offering up to 40 Powder daily.

Season 2 amplifies the adoption of cmETH, allowing holders to earn multiple yields via (i) ETH Proof-of-Stake validation, (ii) restaking protocols, and (iii) L2 decentralized applications. This refined structure reflects Mantle’s growing focus on its L2 ecosystem through its product line and highlights its strategy to enhance engagement and liquidity. Season 2 is set to conclude on Feb. 16, 2025.

Mantle Rewards Station and COOK Feast

The Mantle Rewards Station played a central role in distributing ecosystem rewards in Q4. By Nov. 7 2024, the platform had distributed ~2.50 billion mShards (~4.30 million ENA) and 200.00 million COOK tokens, among other incentives, to MNT token lockers.

The COOK Feast program, running from Nov. 21, 2024, to Feb. 16, 2025, offers COOK tokenholders the opportunity to earn a share of a 200 cmETH reward pool by locking their tokens and generating COOK Power.

In December, the Mantle Rewards Station also introduced new initiatives to expand engagement. On Dec. 6, 2024, Mantle worked with Ethena Labs to launch a three-month campaign allocating 4 million ENA tokens to users locking MNT. Five days later, on Dec. 11, 2024, EIGEN was added to the Rewards Station, enabling users to earn additional rewards by locking MNT tokens in an active pool. Both initiatives encourage longer lock-in durations through a fixed multiplier system, ranging from 1x for no lock-in to 3x for 300 days locked.

Gaming and Social Integration

Mantle Network broadened its ecosystem by integrating elements of gaming and NFTs throughout Q4. The gaming ecosystem experienced new partnerships in October, including collaborations with Aria, a scalable role-playing game that utilizes Web3 technology, and Blade of God X, a cross-platform action-role-playing game.

In the NFT space, the network launched "The Next Phase" event, running from Oct. 31, 2024, to Nov. 14, 2024. Over 9,000 wallets minted NFTs during this period, demonstrating growing user interest in Mantle Network’s NFT initiatives. Additionally, Mantle Network introduced gaming-centric projects like Ember Sword, which integrated player feedback to enhance gameplay.

Ignition FBTC and Updates to Mantle’s Bitcoin Ecosystem

In Q4 2024, Mantle made great progress in its Bitcoin ecosystem through Ignition FBTC, a decentralized Bitcoin solution that combines Bitcoin's security with the composability of DeFi. By Nov. 19, 2024, Ignition FBTC reached a milestone of $1 billion in total value locked (TVL), demonstrating strong adoption across five chains, and integration with over 40 DeFi protocols. Mantle also partnered with Chainlink to implement Price Feeds and Proof of Reserve Secure Mint. These offerings enhanced FBTC’s reliability and security by providing tamper-proof price data and ensuring the minting process remains transparent and trustless. FBTC collateral is validated in real-time, reducing risks associated with token minting. Additionally, on Dec. 18, 2024, Mantle announced the deployment of Compound III on its platform. The deployment integrates Ethena Labs’ USDe as the base asset, with FBTC featured as a collateral option alongside mETH and WBTC. 

Closing Summary

Q4 2024 marked a period of robust growth and strategic advancements for Mantle. Significant increases in TVL and treasury holdings underscored the network’s financial strength and expanding ecosystem. With innovative products like the mETH Protocol and cmETH driving adoption, Mantle Network reinforced its leadership in Ethereum staking solutions. Technological upgrades, including ERC-7683 and Chainlink CCIP, further enhanced interoperability and user experience across its ecosystem. Community-driven initiatives, such as the Mantle Rewards Station and Methamorphosis Season 2, demonstrated Mantle’s commitment to fostering engagement and incentivizing participation. Positioned as a major player in DeFi, Mantle enters 2025 with strong momentum for sustained growth and ecosystem development.