Crypto Market on Edge: Mantra OM Plunges While XRP ETF Hype Builds — What Comes Next?

On April 13, 2025, Mantra’s OM token faced a devastating crash, plummeting from $6.35 to just $0.37 in a matter of hours. This 90% drop erased over $5.4 billion from the token’s market cap, shrinking it from $6.11 billion to $683 million. The scale and speed of the fall stirred panic across the crypto community, drawing comparisons to infamous disasters like the Terra LUNA collapse and FTX implosion.

Mantra’s CEO, John Patrick Mullin, blamed “reckless forced liquidations” by centralized exchanges during periods of low liquidity, firmly denying any wrongdoing by the Mantra team or major investors. Nonetheless, skepticism grew online, fueled by conspiracy theories and allegations of insider trading.

Suspicious Transfers Raise Eyebrows

According to Lookonchain, 43.6 million OM tokens—worth around $227 million—were moved to large exchanges from 17 different wallets before the crash. Notably, two wallets were linked to Laser Digital, a Mantra investor. Laser Digital and another backer, Shorooq Partners, have denied selling any tokens, but the timing of the transfers has drawn scrutiny.

The controversy intensified after Mantra’s official Telegram channel abruptly vanished, prompting fears of a rug pull. Mullin later stated that the disappearance was unintentional. By April 15, OM had slightly recovered to $0.73, though it remained more than 85% below its pre-crash level. The Mantra team is now working on a recovery plan that includes token buybacks and potential token burns.

XRP Steps Into the ETF Spotlight

While OM’s crash shook confidence, XRP has emerged as a beacon of optimism amid market uncertainty. Data from Santiment shows XRP gaining momentum in the race for spot crypto ETF approval in the U.S. On April 8, Teucrium launched the first U.S.-based XRP ETF under the ticker XXRP. Although it’s not a true spot ETF, the leveraged fund aims to mirror double the daily return of XRP using swaps and European ETPs.

Santiment highlights that XRP currently leads the ETF filing race with 10 active applications. In comparison, Solana has five, while Litecoin and Dogecoin each have three. Prominent asset managers like Grayscale, Bitwise, and VanEck are among the applicants. The SEC is expected to make a critical decision on Grayscale’s application by May 22.

Sentiment Split: XRP Optimism vs. OM Fallout

A comparison of XRP and Solana shows diverging trajectories. Solana’s U.S. market share has dipped from 30% in 2022 to 16%, while XRP’s presence has been steadily climbing. However, in terms of trading and social volume, XRP still hasn’t significantly outpaced Solana.

Santiment reports that overall market sentiment is deeply divided. The OM collapse has rattled investor trust just as confidence was beginning to rebuild. Meanwhile, XRP’s ETF momentum offers a sliver of hope.

Macro Uncertainty Lingers as Traders Await Fed Decision

Despite growing optimism for XRP, most cryptocurrencies are still trading below their recent highs. Santiment’s MVRV analysis shows many tokens remain in negative return territory, suggesting ongoing investor caution.

All eyes now turn to the next Federal Open Market Committee (FOMC) meeting on May 7, which could play a decisive role in shaping crypto’s short-term future.