Investor sentiment in the cryptocurrency market faced a substantial downturn this week following the dramatic fall of Mantra’s OM token, which plummeted by more than 90% in just a few hours on Sunday, April 13. This event has led to immediate comparisons to other significant market collapses, such as the notorious Terra-Luna disaster. Additionally, a report from Coinbase aimed at institutional investors has heightened concerns, suggesting that the cryptocurrency market may remain in a bearish phase until a potential recovery in the third quarter of 2025.
Mantra OM Token Crash Reveals Serious Liquidity Challenges in Crypto
The recent decline in the value of Mantra’s OM token underscores persistent liquidity challenges within the cryptocurrency sector, particularly during weekends. This volatility may have intensified the severity of the token’s fall. On April 13, the OM token’s price nosedived from approximately $6.30 to below $0.50, raising allegations of market manipulation among frustrated investors, as reported by Cointelegraph. Blockchain analysts are currently investigating the factors behind this collapse, which, according to Gracy Chen, CEO of the cryptocurrency exchange Bitget, brings to light several systemic issues within the industry. Chen noted that the crash is indicative of wealth concentration, lack of transparent governance, and the impact of sudden inflows and outflows on exchanges, paired with forced liquidations during periods of low liquidity.
Coinbase Reports Suggest Crypto Market Bearish, Possible Recovery in Q3
A monthly analysis by Coinbase, a publicly traded cryptocurrency exchange based in the U.S., reveals that while the crypto market has seen a contraction, there are signs that it may be preparing for a more favorable quarter ahead. In its April 15 report for institutional investors, Coinbase indicated that the altcoin market capitalization fell by 41% from its peak of $1.6 trillion in December 2024 to around $950 billion by mid-April. Data from BTC Tools also noted a drop to as low as $906.9 billion on April 9, with a slight recovery to $976.9 billion at the time of publication. Venture capital investments in crypto projects have reportedly declined by 50% to 60% since 2021-22. David Duong, Coinbase’s global head of research, warned that multiple indicators suggest the onset of a new ‘crypto winter’ due to a prevailing negative market sentiment exacerbated by global tariffs and potential escalations.
Manta Network Co-Founder Reports Sophisticated Phishing Attempt by Lazarus Group
Kenny Li, co-founder of Manta Network, revealed that he was the target of an advanced phishing attempt via Zoom, executed by the notorious Lazarus Group, which is linked to North Korea. The attackers utilized live recordings of familiar faces to entice him into downloading malware. Li described the incident in an April 17 post on X, noting that while the video call appeared legitimate, the absence of sound and a suspicious prompt to download a script raised his suspicions. After leaving the call, he requested verification from the impersonator via Telegram, but the individual promptly deleted all messages and blocked him. Li managed to capture screenshots of their conversation before the messages were erased, suggesting that the live images used were likely derived from prior recordings rather than being AI-generated.
AI Tokens and Memecoins Dominate Crypto Trends in Q1 2025
The cryptocurrency market continues to revisit previously established themes, with new trends yet to emerge to supplant those from earlier quarters. In the first quarter of 2025, artificial intelligence tokens and memecoins emerged as the most prominent narratives, accounting for 62.8% of investor interest, as outlined in a quarterly research report by CoinGecko. AI tokens attracted 35.7% of global interest, surpassing the 27.1% share of memecoins, which retained its position in second place. Among the top 20 narratives for the quarter, six were categorized as memecoins, while five were linked to AI. CoinGecko co-founder Bobby Ong expressed his observations in an April 17 post, indicating a lack of fresh narratives and a fatigue with the repetition of past trends.
Crypto Lending Drops 43% from 2021 Peaks, DeFi Borrowing Surges
The crypto lending landscape has seen a significant decline from its $64 billion high, yet decentralized finance (DeFi) borrowing has rebounded impressively, experiencing over a 900% recovery from the lows of the bear market. Crypto lending allows borrowers to leverage their crypto assets as collateral for loans, while lenders earn interest on their holdings. According to a report by Galaxy Digital published on April 14, the crypto lending market has shrunk by over 43%, from its peak of $64.4 billion in 2021 to $36.5 billion at the end of the fourth quarter of 2024. Zack Pokorny, a research associate at Galaxy Digital, attributed this decline to the ramifications of the failures of several centralized finance (CeFi) lenders, such as Genesis, Celsius Network, BlockFi, and Voyager, which filed for bankruptcy over two years as crypto values plunged. The collapse of these entities resulted in an estimated 78% reduction in the lending market, with CeFi lending suffering an 82% decrease in open borrowings.
DeFi Market Overview
According to data compiled from Cointelegraph Markets Pro and TradingView, most of the top 100 cryptocurrencies by market capitalization ended the week on a positive note. Among the week’s biggest gainers was the decentralized exchange (DEX) Raydium’s (RAY) token, which surged over 26%, followed by the AB blockchain (AB) utility token, which increased by more than 19% within the same timeframe. The total value locked in DeFi continues to evolve, reflecting ongoing developments in this dynamic sector. Thank you for following our summary of the week’s most significant DeFi advancements. We invite you to join us next Friday for further updates, insights, and educational content regarding this rapidly changing landscape.
