Ethereum solution Layer-2 network Mantle’s native token MNT may not be doing well. Recently, a noticeable increase in MNT’s supply on exchanges has been observed. This indicates that investors are looking to profit from the recent double-digit price increase.
Current State of Mantle
As of the time of writing, Mantle’s (MNT) price had increased by 17% over the past seven days, reaching $0.8935. MNT investors, looking to capitalize on the price increase, have started preparing their tokens for profit, as reflected by the increased supply on exchanges.
According to data provided by Santiment, the current market view shows that 321 million MNT tokens, valued at $286 million, are held in exchange wallets. An increase in exchange supply was observed on July 17, and this increase was 3% over the last six days.
It is known that an increase in supply on exchanges is generally interpreted as negative. This indicates that investors may want to take profits based on the saturation of the increase. MNT investors seem to be preparing to sell their tokens. The reason for this is that recent transactions have become highly profitable.
Data showing the seven-day average of the daily on-chain transaction volume’s profit/loss ratio revealed that for every loss-making MNT transaction in the last seven days, 1.59 transactions were profitable.
How Much Will MNT Be Worth?
If investors indeed start selling, MNT could face downward pressure. The price could drop from its current level to $0.80. On the other hand, if demand decreases, the price could fall to $0.50.
Conversely, if the trend shifts towards more investors wanting to buy tokens, MNT’s price could reach $0.93.
MNT’s current price of $0.8935 brings a market cap of $2.92 billion, ranking it 31st. Additionally, the 24-hour trading volume increased by 20%, reaching $193 million.
