State Of Mantle Q2 2025

What Happened

“Ecosystem diversification progressed with the UR beta soft launch for unified fiat-crypto accounts, MI4’s debut as a $200 million tokenized fund (the largest non-T-bill tokenized fund onchain), and MantleX’s AI research publications and incubations, alongside a 3.1% stablecoin market cap increase to $483.6 million.”

Mantle Index Four (MI4): An institutional-grade fund that bridges traditional and decentralized finance, providing crypto-native and traditional investors access to crypto beta and risk-return profiles.

Market Context

Mantle evolved its modular architecture into the “Liquidity Chain” to support onchain banking, advanced OP-Succinct on Sepolia testnet toward a ZK validity rollup, and will deploy OP-Succinct on mainnet in Q3 2025.

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 ~$2.3 billion community-owned treasury, which actively funds innovative products and fosters the growth of ecosystem partners. Mantle drives financial utility and liquidity through core products like Mantle Network, mETH Protocol, Function, and MI4, enabling the development of solutions that enhance sustainable yield, deep liquidity, and composability across DeFi.

Mantle Network (MNT) is built using OP Stack Bedrock. The network has integrated EigenDA on mainnet and is slated to fully integrate Succinct's SP1 to further enhance user security. The EVM-compatible network employs an optimistic rollup mechanism to batch multiple transactions into a single transaction on the Ethereum mainnet. 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 its large community-owned treasury anchors. Mantle’s treasury catalyzes 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.

mETH Protocol: Mantle’s native, vertically integrated staking and restaking protocol. It combines user accessibility with scalability to offer opportunities for users to accrue Ethereum staking yields while enhancing capital efficiency.

Function (FBTC): Previously known as Ignition FBTC, Function is Mantle’s standard infrastructure for enhancing Bitcoin’s capital efficiency, deep liquidity, and composability. It is powered by core contributors Antalpha Prime, Mantle, and Galaxy Digital.

Market Cap and Price

In Q2 2025, MNT’s circulating market cap decreased 25.6% QoQ, from $2.7 billion to $2.0 billion. Similarly, the price of MNT decreased 25.6% QoQ, from $0.79 in Q1 to $0.58 in Q2. Mantle’s total revenue also declined 59.6% QoQ from $376,229 to $151,900.

As of June 30, 2025, Mantle Network’s DeFi ecosystem is led by a small group of protocols that comprise the majority of locked onchain value. Merchant Moe and AGNI Finance accounted for 56.5% of Mantle’s DeFi TVL in Q2, holding $83.6 million (38.8%) and $38.2 million (17.7%), respectively. Stargate Finance followed with $27.7 million (12.9%), while INIT Capital held $21.6 million (10.0%), and Lendle captured $10.6 million (4.9%). The remaining protocols in the “Others” category, consisting primarily of mETH Lab, Omega, PumpBTC, and IntentX, contributed $33.6 million (15.6%).

Notably, Mantle’s mETH Protocol and Function (FBTC) continued to bolster the network’s ecosystem TVL during Q2. At quarter’s end, mETH Protocol recorded a TVL of $939.1 million, reflecting its role as a liquid staking and restaking solution focused on Ethereum-native yield strategies. Function, Mantle’s BTC-based yield product, ended the quarter with a TVL of $1.5 billion, entirely backed by BTC. The protocol continues to gain traction as a high-liquidity, cross-chain Bitcoin instrument. TVL figures represent an uptrend from prior lows, and both protocols remain foundational to Mantle’s broader architecture and driving onchain adoption.

Why It Matters

Key Insights

The mETH Protocol and Function (FBTC) were solidified as foundational elements, ending Q2 with TVLs of $939.1 million and $1.5 billion, respectively.

Details

Mantle’s daily active addresses fell 67.7% QoQ to 12,207, with daily transactions decreasing 35.5% to 252,418. Broader ecosystem initiatives, such as Rewards Station S3, Kaito Yapper, Lightning Grants, and Games Fest, helped support user activity and incentivize new participants.

Mantle's total treasury value in USD decreased 15.9% QoQ from $2.6 billion to $2.3 billion, with MNT comprising 76.5% of holdings. At quarter’s end, the treasury ranked second among protocols per DefiLlama.

Primer

Mantle’s other core innovation pillars include:

UR: A borderless smart money app that simplifies spending and off-ramping across fiat and stablecoins. It blends self-custodial crypto workflows with intuitive TradFi usability for natives and new users.

Website / X (Twitter) / Discord

Key Metrics

Financial Analysis

Revenue

Total Value Locked (TVL)

Network Analysis