On March 19, Ethereum Layer 2 solution Mantle launched a major upgrade — the V2 Everest version officially went live. This update not only brought significant enhancements to the existing architecture, including full activation of EigenDA and support for the new RIP-7212 precompiled contracts, but also improved overall network functionality and prepared the system for the upcoming Ethereum Pectra upgrade, enhancing compatibility.

Recent developments show that Mantle is building a goal-oriented ecosystem, aiming to redefine on-chain finance through deeper collaboration with institutions. This article delves into Mantle’s current trajectory, highlighting six key pillars — including the core network, the mETH protocol, and Function (formerly known as Ignition FBTC) — along with the token economy centered around $MNT, to showcase its future potential and the challenges it faces.

Overview of Mantle’s Development

Mantle is a high-performance, modular Ethereum Layer 2 network. By integrating Optimistic Rollup, Zero-Knowledge proofs, and EigenDA-powered data availability solutions, Mantle maintains Ethereum’s security while offering users a cost-efficient and user-friendly experience. At the same time, it provides developers with a simpler and more flexible development environment, enabling the easy creation of diverse applications.

(Source: Mantle)

Mantle was incubated in 2022 by the decentralized autonomous organization (DAO) BitDAO. The project was initially designed to create a user-friendly network to accelerate the adoption of Web3. It was launched by Bybit CEO Ben Zhou, along with other prominent members of the crypto community, such as Sreeram from EigenLayer, Dow Jones, and Cooper Midroni. In May 2023, following the approval of a community governance proposal, BitDAO officially merged with Mantle. Subsequently, BitDAO’s native token $BIT was converted to Mantle’s native token $MNT at a 1:1 ratio.

Regarding funding, BitDAO raised $230 million in June 2021, in a round led by Pantera Capital, Dragonfly, and Founders Fund, with participation from Jump Capital, Spartan Group, Fenbushi Capital, and others. At the time, Bybit committed to contributing 0.025% of its futures trading volume revenue to the BitDAO treasury, resulting in over $1 billion in contributions throughout 2022 alone.

Since the mainnet launch in July 2023, Mantle has successfully entered the top tier of Layer 2 (L2) networks and achieved several impressive milestones:

• According to L2beat data as of March 29, Mantle ranks fourth among all L2 blockchains in terms of Total Value Locked (TVL), with $1.31 billion, trailing only Arbitrum, Base, and OP Mainnet.
• According to DeFiLlama data as of March 29, Mantle’s core product mETH has over 393,000 ETH staked, representing more than $727 million in TVL, making it the fourth-largest Ethereum liquid staking protocol.

(Source: defillama.com)

• Mantle currently manages the largest community-owned treasury in the industry, with assets exceeding $2.95 billion.
• Through ecosystem incentive programs like EcoFund and Mantle Scouts, Mantle fosters a thriving ecosystem of over 230 dApps, spanning infrastructure, gaming, DeFi, NFTs, social, and more.

$MNT is the core token of the Mantle ecosystem, with a total supply of 6.219 billion tokens and a current circulating market cap of approximately $2.707 billion. It serves both governance and utility purposes—it can be used to pay network gas fees, participate in ecosystem governance votes, and function as the main asset for ecosystem incentives and expenditures.

Six Core Pillars

After years of rapid development, Mantle has solidified its position among Layer 2 (L2) blockchains by building a robust infrastructure. In 2025, the team aims to focus on financial transformation, value creation, and community empowerment, while advancing on-chain finance in collaboration with enterprise-level partners. Backed by the strength of the Mantle Treasury and centered around six core products, Mantle is shaping an innovative and efficient financial ecosystem.

Mantle Network

Launched in July 2023, Mantle Network has successfully transitioned to its v2 version, and completed the “Everest” upgrade in mid-March, which brought significant improvements in performance, security, and compatibility.

Mantle Network’s goal is to become a liquidity chain capable of supporting institutional-grade settlement and value transfer. To achieve this, the network is built on the following features:

1. Modular Architecture

Unlike traditional monolithic chains, Mantle separates key blockchain functions—execution, consensus, settlement, and data availability (DA)—into independent modules. This design allows Mantle to maintain Ethereum-level security while reducing costs and improving overall performance.

1. Data Availability Powered by EigenDA

EigenDA is a data availability protocol built on the restaking protocol EigenLayer. It offers multiple advantages such as elastic scalability, ultra-low costs (mere cents per MB), cross-chain interoperability, and customizable flexibility tailored to specific use cases.

Previously, as EigenDA had not yet launched its mainnet, Mantle utilized Mantle DA—a third-party DA layer powered by EigenDA. With the latest upgrade, EigenDA has now been fully integrated into the Mantle mainnet.

1. Combination of Optimistic Rollup and Zero-Knowledge Proofs

Initially, Mantle was built on an Optimistic Rollup stack. As the ecosystem evolves and transformation needs arise, Mantle is transitioning toward a ZK Rollup model through the integration of Succinct Processor 1 (SP1), which is now live on the Mantle Sepolia testnet.

SP1 is an open-source zero-knowledge virtual machine (zkVM) fully compatible with the Ethereum Virtual Machine (EVM), offering high performance. With SP1, Mantle enables secure withdrawals within just one hour—a 168x improvement over existing bridging capabilities. Additionally, SP1 supports cross-Rollup interoperability, laying the groundwork for enhanced asset liquidity and a more interconnected ecosystem.

(Source: Dune@sealaunch)

According to blockchain explorer data, in less than two years since its mainnet launch, Mantle has surpassed 5.86 million accounts and recorded over 220 million transactions, with daily transaction volume maintained in the hundreds of thousands. This indicates strong on-chain activity. In terms of network revenue, Mantle has accumulated $9.9 million to date.

mETH Protocol

The mETH protocol is a permissionless ETH liquid staking protocol launched on December 4, 2023. After more than a year of development, mETH has grown into the fourth-largest Liquid Staking Derivatives (LSD) product in the industry, with over 393,000 ETH staked, and has been integrated into more than 30 dApps, including Pendle.

To maximize user yield, Mantle introduced cmETH on October 30, 2024. Users can obtain cmETH by restaking mETH, and it is pegged 1:1 to mETH. In under six months since launch, cmETH’s supply has already reached 224,000+.

Both mETH and cmETH aim to provide diversified yield opportunities and are usable across various DeFi platforms and apps, such as EigenLayer, Karak, and Symbiotic, enhancing capital efficiency. Simultaneously, Mantle continues to deepen ecosystem partnerships to expand the on-chain presence of mETH and cmETH. Currently, Season 3 of the Methamorphosis campaign launched on March 26 and will run for six months. Users holding cmETH can earn multiple revenue streams and Powder points through holding, staking, and providing liquidity. These Powder points can be redeemed for the $COOK token.

(Source: app.methprotocol.xyz)

$COOK is the governance token for the mETH protocol. It is minted on the Ethereum mainnet and can be bridged to other chains. Holders of $COOK can vote on the direction of the ecosystem and other strategic matters. The total supply of $COOK is 5 billion, with around 2.4 billion currently in circulation.

Function (formerly Ignition)

Function is an ideal option for BTC holders looking to maximize asset value. As a decentralized protocol, Function enables seamless BTC movement across different blockchain networks and allows users to earn yields through participation in activities such as lending, staking, and liquidity provision. FBTC has partnered with over 30 protocols and applications, including Ethena, Pendle, Avalon, and Lombard.

BTC Custody Address (Source: fbtc.com/proof-of-assets)

FBTC is pegged 1:1 with BTC and backed by 100% BTC reserves. According to the official website, as of March 29, FBTC’s reserve was 14,516.89 BTC, valued at approximately $1.207 billion USD. To enhance asset security, Function utilizes Multi-Party Computation (MPC) and Threshold Signature Schemes (TSS), supported by Antalpha, Galaxy, Mantle, and other security committee members. Public audits are conducted regularly to ensure transparency.

The Mantle Network, mETH Protocol, and Function FBTC are already live and play crucial roles as core components of the ecosystem. These products continue to expand their reach through integration with more applications to serve a broader user base. To further boost Mantle’s ecosystem competitiveness and diversity, the team is set to launch three additional core products later this year.

Enhanced Index Fund

With the official approval of Bitcoin spot ETFs, crypto assets are attracting increasing attention from traditional finance players. To provide institutional and retail investors with opportunities to participate in DeFi, Mantle is preparing to launch an Enhanced Index Fund, anchored by the Mantle Treasury, targeting an Asset Under Management (AUM) of $1 billion USD.

According to the team, this index fund features two key aspects:

• It will consist of BTC, ETH, SOL, and USD, utilizing on-chain staking to boost returns. For example, exposure to ETH will be represented by mETH, to SOL by bbSOL, and to USD by yield-bearing assets such as sUSDe and AUSD. \

• The fund will be tokenized, providing investors with on-chain certificates that allow instant ownership transfer, leverage, and integration with other dApps.

Mantle Bank

Mantle Bank aims to become the on-chain equivalent of Revolut. Revolut, a UK-based fintech company, offers financial services including currency exchange, savings, futures trading, and stock investments. Similarly, Mantle Bank will deliver these functionalities, but fully on the blockchain. It seeks to redefine banking by bringing payments, lending, and wealth management on-chain, providing a fast, efficient, and seamless user experience.

MantleX

With the surge of AI agents across industries, Mantle recognizes their disruptive potential. MantleX is an AI-powered platform focused on deploying and managing advanced AI agents tailored to various use cases, such as fund management, community engagement, and on-chain research.

By partnering with leading AI-agent platforms like INFINIT Terminal and Layer3 Intel, Mantle will continue to explore the deep integration of AI and DeFi, unlocking new possibilities and delivering innovation across the entire Mantle ecosystem.

$MNT-Centric Token Economy

$MNT is the core token of the Mantle ecosystem, with a total supply of 6.219 billion tokens. It is supported on both the Ethereum mainnet and the Mantle network. According to the official token allocation chart, 51% of the total supply was fully circulated at launch. In comparison, the remaining 49% is held by the Mantle Treasury and distributed or unlocked based on governance proposals. Currently, $MNT has a circulating supply of 3.365 billion tokens, accounting for approximately 54.11% of the total.

Within the Mantle ecosystem, $MNT serves both utilitarian and governance functions, specifically:

• Utility: $MNT can be used to pay gas fees on the Mantle network, serves as the primary asset for ecosystem rewards, and is utilized for treasury expenditures, including R&D, growth, marketing, operations, and ecosystem grants.
• Governance: Holders of $MNT possess the rights to initiate and vote on ecosystem governance proposals.

To bolster holder confidence, Mantle has launched a Rewards Center platform. Users can stake $MNT to earn rewards—the longer the lock-up period, the higher the Power multiplier, and the greater the rewards. It is important to note that once $MNT is locked, it cannot be withdrawn during the staking period, although it can still be used for governance voting. The total amount of $MNT staked on this platform is 93.62 million tokens, worth approximately $75.4 million.

Beyond its native token, Mantle is also actively developing in the NFT space. It has not only issued NFT assets but also provides an NFT Launchpad for ecosystem creators and collectors, supporting the minting, purchasing, and selling of NFTs.

(Source: mintle.app/explore)

Mantle Citizens is the first native NFT collection from the Mantle ecosystem, co-created with visual artist Chen Man. The total supply is 100,000 NFTs, which were available for free minting by whitelisted users. As users engage more deeply with the ecosystem, these NFTs will visually evolve and unlock additional potential benefits for their holders.

Ecosystem Development and Incentives

Mantle places a strong emphasis on ecosystem development. To drive large-scale adoption of the Mantle network, it offers comprehensive support to developers through its treasury, ecosystem fund, sponsorship programs, and frequent online and offline events worldwide. This support spans technical assistance, funding, and marketing resources. Currently, over 230 decentralized applications (dApps) have been built on the Mantle network, covering key sectors such as infrastructure, finance, gaming, NFTs, and social.

• Mantle Treasury \
  With $2.95 billion in assets, the Mantle Treasury is the largest community-owned treasury in the ecosystem. It primarily holds MNT, mETH & cmETH, and stablecoins. The treasury serves as a powerful engine for the Mantle ecosystem, generating $67 million in revenue in 2024 alone.

(Source: group.mantle.xyz)

• EcoFund
  The EcoFund is a $200 million ecosystem fund co-established by the Mantle Treasury and strategic venture partners such as Polychain Capital and Animoca Ventures. It focuses on investing in native applications and technology partners within the Mantle ecosystem. So far, dozens of projects have received support from the EcoFund, including IntentX, INIT Capital, Veda, B3, Babylon, and Catizen. \

• Mantle Grants
  This includes programs like the Buildathon and Mantle Scouts, which support projects at various stages of development. The first season of the Scouts program brought in 16 projects, and applications for the second season are currently open, with a focus on sectors like consumer apps, payments, and AI. \

• Developer Support
  To attract developers globally, Mantle not only provides comprehensive educational resources but also sponsors and organizes over 20 hackathons worldwide, along with multiple Sozu Haus accelerator events.

Future Outlook and Potential Challenges

Mantle is highly optimistic about 2025 and aims to strengthen its capabilities and competitiveness in the enterprise blockchain space through a series of initiatives, including network upgrades, product launches, ecosystem expansion, and enhanced community governance.

• Network Upgrades: Following the completion of the Everest upgrade, Mantle will align with Ethereum’s Pectra upgrade to ensure synchronized progress. In the year’s second half, Mantle will launch a testnet for its zkVM-based proof system and conduct additional proof-of-concept (PoC) experiments, while continuing to refine its chain abstraction capabilities.
• Product Launches: In 2025, Mantle will launch a suite of new products, including enhanced index funds, Mantle Bank, and MantleX, to meet its users’ diverse needs.
• Ecosystem Expansion: Mantle has already established deep collaborations with leading projects across various sectors. In 2025, it plans to strengthen these partnerships further and explore new ones to build a more diverse community. On the developer front, Mantle will continue to provide better tooling and documentation, and will keep hosting technical workshops and hackathons to drive broader adoption of its solutions.
• Community Governance: $MNT holders steer the strategic direction of the Mantle ecosystem. The team will continue to refine ecosystem incentives to enhance community cohesion and engagement.

Mantle demonstrates significant development potential at this stage, driven by its clear and comprehensive product roadmap and strong execution. However, it still faces several key challenges:

• On the technical front, Mantle needs to continuously refine and upgrade its zero-knowledge proof mechanisms, cross-chain interoperability, and chain abstraction features to maintain its technological edge and developer-friendly environment.
• In terms of ecosystem applications, while Mantle’s ecosystem has made initial progress, it currently lacks flagship native applications that could boost user engagement. This weakens the broader adoption of the Mantle network and the $MNT token.
• Within the Layer 2 (L2) landscape, Mantle must strike a balance between preserving its competitive independence and collaborating with other L2 projects. Enhancing interchain interoperability and addressing liquidity fragmentation will be essential, along with building self-sustaining value generation capabilities.
• Regarding tokenomics, nearly half of the total $MNT supply is held by the Mantle Treasury, with its unlocking and allocation entirely governed by community proposals. This introduces significant uncertainty and leans toward centralization. Moreover, the current utility of $MNT remains limited, and the team must continue working to expand its use cases.

Conclusion

With its modular architecture, substantial treasury reserves, mETH protocol, and products like Function FBTC, Mantle has carved out a distinct position in the L2 space. Under its well-defined institutional strategy, and through upcoming flagship products like crypto index funds and Mantle Bank—as well as deeper partnerships with institutions—Mantle is steadily evolving from blockchain infrastructure into a fair and open financial innovation platform.

However, this transformation is not without its challenges. Despite strong financial backing and execution capabilities, Mantle must continue optimizing its technical architecture, enhancing governance mechanisms, and maintaining ecosystem vitality. Only through relentless innovation can it sustain its current advantages and realize its vision of becoming the leading hub for on-chain finance.