Mantra's total-value-locked (TVL) surged 500% to a yearly high of 4.21 million OM (~$3.24 million) on April 15, despite a 90% price crash of the OM token. During this crash on April 13, traders acquired approximately $35 million worth of OM, raising concerns of a potential bull trap. Analysts noted that while 97% of the TVL increase stemmed from Mantra Swap, the protocol's decentralized exchange, it demonstrated a lack of decentralization and raised red flags about capital distribution. Mantra's fully diluted valuation (FDV) of $1.88 billion presents a significant disconnect when compared to its TVL, hinting at possible overvaluation. Furthermore, the low capital efficiency suggests that market dynamics may be driven by speculation rather than actual adoption. Experts caution that the current spike may lead to further corrections, particularly given the large number of tokens likely still locked in the system as vesting schedules unfold.

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