Mantle (MNT) Surges 20% as Ethereum’s Dencun Upgrade Fuels Optimism for Layer-2 Solutions
Arslan Butt•Monday, February 26, 2024•1 min read
Mantle (MNT), the token powering the Ethereum Layer-2 scaling solution of the same name, has experienced a significant price increase of nearly 20% in the past 24 hours. This surge can be attributed to two key factors:
1. The Ethereum Dencun Upgrade and EIP-4844
- The recent Dencun upgrade on the Ethereum mainnet introduced a series of Ethereum Improvement Proposals (EIPs), including the highly anticipated EIP-4844.
- EIP-4844 is a major step towards Ethereum’s scalability goals, introducing Proto-Danksharding.
- This novel technology facilitates the use of “blob-carrying transactions”, a new transaction type that significantly reduces gas fees for users on Layer-2 networks.
- Lower gas fees on L2s are expected to attract more users and developers, potentially making them a more attractive alternative to Layer-1 solutions.
2. Rising Total Value Locked (TVL) in Layer-2 Networks
- The combined TVL of all Ethereum Layer-2 networks recently reached a new all-time high of $29.25 billion.
- Mantle itself witnessed a notable increase in TVL, climbing by 9.27% to $718 million.
These developments have ignited optimism for the future of Layer-2 solutions like Mantle, leading to the surge in MNT’s price.
MNT/USD Technical Analysis
The recent surge has pushed MNT above its previous resistance level of $0.75, currently trading around $0.90. Traders should take note of the following technical indicators:
- Resistance Levels: $0.95 (ATH), $1.00, and $1.20.
- Support Levels: $0.75, $0.65, and $0.55.
- Technical Indicators: The Relative Strength Index (RSI) is approaching overbought territory, suggesting a potential pullback. However, the Moving Average Convergence Divergence (MACD) still reflects bullish momentum.
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ABOUT THE AUTHOR
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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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