The crypto market is facing uncertainty following the collapse of the Mantra project, which raises investor trust issues, while potential positive developments regarding the XRP ETF are also not overlooked.
Mantra's Collapse and Its Consequences
Analysts at Santiment noted that the incident with Mantra has reignited doubts amidst recovering confidence in the crypto market, comparing it to the LUNA crash in 2022. While no evidence of fraud has been found, the circumstances surrounding Mantra's collapse have contributed to ongoing distrust in the market.
Optimism Surrounding XRP ETF
Despite the difficulties in restoring Mantra's reputation, analysts express optimism regarding the potential approval of a spot ETF for XRP. Bloomberg analyst Eric Balchunas recently noted that the odds of a spot XRP ETF being approved in 2025 are "pretty high." Ripple further suggests that the tokenized asset market could grow from $0.6 trillion today to $18.9 trillion by 2033, highlighting XRP's potential in this area.
Impact of Interest Rates on Crypto Market
Analysts also point out that many assets remain below their recent highs. Santiment emphasizes that the trajectory of the crypto market will depend on decisions made by the U.S. Federal Reserve regarding interest rates. If the Fed cuts rates and trade disputes are resolved, it may set the stage for a strong recovery in both traditional and crypto markets.
The collapse of Mantra serves as a significant test for trust in the crypto market, yet hopes for XRP ETF approval may keep investors optimistic. Attention to the decisions of the Federal Reserve could also determine the future dynamics of the market.
