1. Overview of Mantle

1.1 Project Introduction

1.1.1    Overview

The blockchain sector has always been the main battleground for Web3. Since the birth of Ethereum, there have been numerous challengers. Building on Ethereum, the competition has further evolved into a race between Layer2 solutions, leading to today’s era of "a hundred schools of thought" in Layer2 development. We are gradually realizing that technological innovation and high performance alone are not enough. A blockchain is like a digital kingdom—it requires a thriving ecosystem and the consensus of many developers and users to continuously generate "revenue."

Mantle has emerged as a dark horse in this highly competitive field. Since launching its mainnet in July 2023, it has risen to become the fourth-ranked L2 in terms of TVL in just over a year, backed by a treasury exceeding $2.6 billion. It has already become one of the leading L2 solutions and shows strong potential to become a top-tier blockchain. So, how did Mantle achieve this success step by step, and what greater developments can we expect in the future? In this article, we will explore these questions in depth.

1.1.2 key development stages

1.2 Tokenomics

$MNT is the governance and utility token within the Mantle ecosystem, with a total supply of 6.219 billion tokens. As a governance token,each $MNT grants voting rights as a governance token in Mantle's governance process.. As a utility token, $MNT is used to pay gas fees on the Mantle network and serves as the primary asset for Mantle rewards. This is a key distinction between Mantle and other Layer 2 solutions, as it uses $MNT for gas fees, which could potentially drive up the value of $MNT.

According to the official snapshot provided on 2023-07-07, the initial distribution of $MNT is as follows.

From the distribution chart, it is clear that Mantle Treasury holds nearly half of the $MNT tokens, which are considered "non-circulating." The allocation of $MNT tokens in Mantle Treasury must follow Mantle's governance process, with strict procedures for budgeting, fundraising, and distribution. After the initial allocation, the sources of $MNT in Mantle Treasury include occasional third-party donations and gas fee revenue from the Mantle mainnet.

The core budget of Mantle primarily spends $MNT on payments and rewards for labor, general and administrative expenses, marketing, ecosystem and builder programs, as well as infrastructure and security.

In MIP-31, which was passed in September 2024, Mantle outlined new plans for its second budget cycle (the 12-month period from July 2024 to June 2025). The key expenditures are focused on R&D and growth ($15 million USDx and $20 million MNT), as well as marketing ($12 million USDx and $20 million MNT). In fact, Mantle has already collaborated with various marketing agencies and research entities. Prominent media outlets and research institutions, such as Bankless, Unchained Podcast, Delphi Digital, Messari, and influential thought leaders, have all covered Mantle.

1.3  Data Overview

1.3.1 Project-Related Data

Now take a look at multiple data points to get a clear sense of Mantle's growth over the past year. We know that Mantle launched its mainnet on July 17, 2023. After a period of stability, it experienced explosive growth in early 2024.

In terms of TVL Mantle's on-chain TVL was just over $400 million at the beginning of February 2024. From there, it surged rapidly, reaching a peak of nearly $1.5 billion in April 2024—a growth of over 300% in just four months. As of this writing, Mantle's latest on-chain TVL stands at $1.38 billion, ranking fourth among Layer 2 solutions. As a key metric for evaluating L2 development, TVL largely reflects valuable information about user engagement, market confidence, and the overall health of the ecosystem. Rapid growth in TVL often signifies user trust and adoption, and serves as one of the proofs that Mantle can offer enhanced liquidity.

Based on the TVL in In-dApps, the DeFiLlama dashboard provides a more intuitive view of its ecosystem. It’s clear that the core sources are in DeFi sectors such as DEXs, lending, and restaking, with DEX TVL growing rapidly and taking up a significant portion. This indicates that DeFi is a key focus for Mantle.

After reviewing TVL fundamentals, let's take a look at Mantle's on-chain activity. With the rise of more and more Layer 2 (L2) solutions, it's like building numerous highways with significant time and effort, only to see very few cars on them due to a lack of demand. This is the common challenge most L2s face: a shortage of high-quality applications. Therefore, metrics like user count and transaction volume are more meaningful indicators of an L2's success. In this regard, we can see the impressive user activity reflected in Mantle's growth data.

In terms of total users, Mantle had around 330,000 users in December 2023. As of October 15, 2024, the total number of users has exceeded 4.42 million—a 13x increase in less than a year—indicating that more and more users are joining the Mantle ecosystem.

Based on daily active users, Mantle's monthly active users saw a significant increase by the end of April 2024 and have since maintained a higher average level. The current number of monthly active users is around 40,000, nearly three times the level from September 2023, just over a year ago.

In addition, based on transaction volume, as of October 23, 2024, the total number of transactions on the Mantle network has exceeded 150 million, with a daily peak of over 2.2 million transactions, demonstrating strong on-chain activity. The more active the on-chain transactions, the higher the network's transaction fee revenue, which largely reflects the network's stronger self-sustaining capability.

1.3.2  Social Media Data

As of October 24, 2023, Mantle has accumulated over 800,000 followers on X (formerly Twitter). The communities on Telegram and Discord are highly active, with more than 200,000 members participating in discussions, AMA sessions, and project updates. Currently, Mantle's Discord community has attracted nearly 440,000 members, with over 10,000 daily active users, making it one of the most popular channels. Additionally, updates on X are frequent and highly interactive.

Moreover, Mantle has hosted over 120 AMAs across its official social media channels and ecosystem platforms, featuring KOLs (Key Opinion Leaders) and project team members as speakers. These include series such as Mantle Ecowaves and Mantle Showcase Radio, which have played a significant role in driving user engagement and adoption. Mantle's presence is also visible globally, having organized more than 50 offline events to date.

1.4 Technical Architecture Principles

L2 Rollups are primarily divided into two types: OP (Optimistic Rollup) and ZK (Zero-Knowledge Proof Rollup). Mantle Network is based on OP Rollup to implement its L2 scaling solution, while also developing a modular DA (Data Availability) layer. It incorporates MPC (Multi-Party Computation) and an advanced decentralized sequencer to enhance TPS (Transactions Per Second) and reduce costs.

1.4.1  Modular Design Significantly Reduces Transaction Costs

When discussing modular blockchains, we must first understand the concept of a monolithic blockchain. Using Ethereum as an example, a mature monolithic blockchain can generally be divided into four layers: the Execution Layer, Settlement Layer, Data Availability (DA) Layer, and Consensus Layer, each with its own distinct functions and roles. In simple terms, Mantle's modular design processes these four key functions at different layers, rather than handling them all on a single network layer like most monolithic blockchains. These four functions are:

1. Transaction Execution: Transactions are executed on Mantle's EVM-compatible execution and settlement layer. The Mantle sequencer generates blocks on the L2 execution layer and submits state root data to the main blockchain.

2. Consensus and Settlement: Handled by the Ethereum L1 network.

3. Data Availability: Mantle has developed an independent data availability layer based on Eigen DA, allowing only the necessary state roots to be submitted to the Ethereum mainnet for storing callback data that would typically be broadcast to L1.

4. Data Retrieval: Other nodes retrieve transaction data from Mantle DA via the DTL service, where it is verified and confirmed.

In the current blockchain architecture, OP Rollup incurs high Calldata costs to submit all transaction data to Ethereum's data availability layer. As transaction volume increases, these costs can account for as much as 80-95% of total fees, severely limiting the cost efficiency of Rollups. However, Mantle Network, through its independently developed modular data availability layer, has successfully reduced operational costs. Additionally, the modular design makes it easier to integrate new technologies.

1.4.2  Decentralized Sequencers Eliminate Centralization Risks

Sequencers play a critical role in Layer 2 (L2) solutions by collecting and ordering transactions, computing states, and generating blocks, making them essential for the network’s security. In traditional Rollup solutions, the sequencer is typically a single centralized node, which is vulnerable to failures, manipulation, or censorship. Mantle replaces this centralized sequencer with a permissionless sequencer cluster, offering the following benefits:

● Increased network availability, eliminating the risk of a single point of failure and ensuring continuous network operation.

● Enhanced consensus reliability, preventing manipulation or censorship by the sequencer and ensuring fair and transparent transactions.

● Improved incentive compatibility, where compliance is driven by reward mechanisms, publicensuring the long-term sustainability of the network. In contrast, centralized sequencers face the public goods dilemma.

1.5 Competitive Landscape

The congestion on Ethereum has set the stage for one of the most significant narratives. Vitalik Buterin, in his article The Three Transitions, outlined three major technical transitions that Ethereum needs to undergo: transitioning to Layer 2 (L2) scaling, where everyone moves to Rollups; transitioning to wallet security, where everyone uses smart contract wallets; and transitioning to privacy, ensuring that private transactions are feasible. Vitalik believes that without the development of L2 solutions, Ethereum will fail due to high transaction costs.

Against this backdrop, the L2 space is currently experiencing rapid growth. According to data from L2Beat, there are already 110 L2 or L3 scaling solutions operating in the market. However, only a few have gained mainstream recognition and attracted significant TVL and users. As of October 24, 2024, the TVL of L2 scaling solutions has reached $37.62 billion, a threefold increase from a year ago, demonstrating strong growth momentum and user demand.

1.5.1  Comparison of Mantle and Mainstream L2 Solutions

In terms of TVL, the top three are Arbitrum, Base, and Optimism, which together account for over 73% of the market share. Mantle has quickly risen and, within just a year of its launch, has become the fourth-largest Layer 2.

From the perspective of FDV (Fully Diluted Valuation), Mantle ranks just behind Optimism and Arbitrum with a valuation of $3.58 billion. In terms of MC/FDV, Mantle leads with 54.1%, indicating that MNT is likely to face less selling pressure in the future.

In terms of revenue and profit, Base has surpassed Arbitrum since March this year to become the most profitable Layer 2, while Mantle remains steadily in the top five.

1.5.2  Comparison of Mantle with Exchange-Backed Blockchains

Mantle's early supporters include Bybit, the third-largest exchange, which gives it a unique advantage. In this section, we will also examine and compare other Layer 2 (L2) solutions backed by exchanges.

When discussing exchange-backed blockchains, it's well-known that Binance incubated the BNB and opBNB chains, Coinbase launched Base, and OKX supports X Layer. Additionally, on October 24, Kraken announced its plan to launch its own L2 network, Ink, which is expected to go live on the mainnet in early 2025.

Before introducing these L2 solutions, let’s take a look at the major exchanges behind them. According to CoinMarketCap rankings, Binance, Coinbase, and Bybit are the top three cryptocurrency exchanges, with OKX and Kraken ranking 4th and 6th, respectively. This means that five of the top six exchanges have already supported at least one blockchain. This is an important strategic move for these exchanges.

The entry of exchanges into the blockchain space is not just about expanding their service offerings; it’s also an exploration of shifting from “off-chain” to “on-chain” operations. This trend is expected to drive a larger migration of users and assets from centralized exchanges (CEX) to decentralized finance (DeFi) platforms, pushing the trading ecosystem toward decentralization. Blockchains and exchanges share a common trait: both require new assets to be issued and traded on their platforms to generate revenue. The rich experience in asset management and the strong industry resources that exchanges possess are key competitive advantages for these types of blockchains.

1.5.2.1 BNB Chain

BNB Chain (formerly Binance Chain) was created in 2019. At that time, the utility token BNB, which was launched in 2017, migrated from the Ethereum network to BNB Chain. BNB Chain was rebranded from BSC (Binance Smart Chain). Although it is a Layer 1 blockchain, we are providing a brief introduction here due to its strong backing by Binance.

Currently, BNB Chain has a TVL of $4.7 billion. Leveraging Binance’s exchange background and financial support, BNB Chain has successfully established DeFi as a strong sector, with PancakeSwap being the most well-known project.

Binance's financial and technical support is undoubtedly a major advantage for BNB Chain. However, its close ties to the exchange have raised concerns about its level of decentralization. For example, during a hacker attack in 2022, Binance asked all validators to pause transactions on BNB Chain to quickly control the situation. This centralized action highlighted the limited number of validators at the time and suggested that most nodes were directly or indirectly controlled by Binance.

The key challenge for blockchains incubated by exchanges like this one is how to gradually achieve on-chain governance independence while still leveraging resources from their parent exchange, in order to truly fulfill the decentralized Web3 vision.

Additionally, in Q2 2023, BNB Chain launched opBNB, an EVM-compatible Layer 2 scalability solution based on OP Stack. According to DeFiLlama data, opBNB currently has a TVL of $21.6 million and is still in its early stages of development.

1.5.2.2 Base

Base is an Ethereum Layer 2 blockchain incubated by Coinbase. Since Coinbase is subject to SEC regulations, Base itself faces challenges in issuing a token, which means it lacks the natural token-based economic incentives that other Layer 2 solutions might have.

Despite this, Base has achieved remarkable success within its first year of launch. Its TVL saw two significant surges in April and September of this year, now exceeding $2.4 billion. We've also seen innovations on Base, such as Friendtech.

The top five projects contributing to Base's TVL all come from the DeFi sector. Notably, Aerodrome Finance ranks first, contributing nearly $1.3 billion, which accounts for about 54% of Base's TVL. Aerodrome, an automated market maker (AMM)-based decentralized exchange (DEX), launched on Base on August 28, 2023.

1.5.2.3 Cronos zkEVM

Cronos is a blockchain launched in November 2021 by the cryptocurrency exchange Crypto.com (ranked 13th), serving as an Ethereum-compatible Layer 1 network. However, since its launch, the TVL has not seen significant growth. Later, the Cronos development team, Cronos Labs, partnered with Matter Labs to introduce a zk-based Layer 2 network, Cronos zkEVM, which went live on its mainnet this August.

Currently, Cronos zkEVM’s TVL is stable at around $17 million, which is still relatively small compared to the leading blockchains.

1.5.2.4 X Layer

X Layer is an L2 solution based on zk rollup, jointly launched by OKX and Polygon Labs in April this year. X Layer uses OKB as its native token, which can be used to pay gas fees. In future plans, X Layer will continue to optimize its technical architecture and improve scalability, such as decentralizing the sequencer. Currently, X Layer's TVL is $9.3 million.

In terms of TVL comparison, Base is relatively ahead, Mantle is in second place, while Cronos zkEVM and X Layer are still at a smaller scale.

1.6 Preliminary Value Assessment

By conducting a horizontal comparison across different Layer 2 networks, we can directly assess the network's ecosystem strength and valuation levels, allowing for a better evaluation of the development potential of Layer 2.

Before making comparisons, it's important to note that, unlike other L2 networks that use ETH as the gas token, Mantle uses the MNT token as its gas token. This distinction should be considered when comparing it with other L2 networks. We primarily calculated the following metrics:

It is evident that, compared to other Layer 2 networks in the OP Rollup space, Mantle's ecosystem is still in its early stages. However, more than 50% of Mantle's native token (MNT) is already in circulation, which suggests that future selling pressure will be lower compared to other blockchains. Additionally, Mantle has achieved impressive metrics in a short period, such as high levels of TVL and on-chain revenue. This gives us reason to believe that as the Mantle ecosystem continues to grow and thrive, its competitive position in the Layer 2 space will keep rising, reaching new heights.

2. Mantle Ecosystem

As Vitalik mentioned, the ecosystem of a blockchain is its key advantage. A diverse and thriving ecosystem not only attracts new users but also encourages existing users to engage more frequently and in varied ways. When considering Mantle's growth from this perspective, while market cycles have certainly had a positive impact, the more significant driver has been the continuous expansion of Mantle's ecosystem.

According to the latest data, over 240 dApps have been integrated into the Mantle ecosystem, including 89 DeFi apps, 96 infrastructure apps, and 20 GameFi apps. DeFi and infrastructure make up the majority, highlighting the importance of DeFi as a foundational element for blockchains and its flourishing presence on Mantle.

Next, we will analyze some projects within its ecosystem based on these main categories：

2.1 DEFI

DeFi is the foundation of a blockchain, and the completeness of its infrastructure significantly impacts the potential and ceiling of the entire ecosystem's development. Among Mantle's DeFi projects, 36 are DEXs, while the rest include lending, re-staking, and other services. Below, we will introduce some of these projects：

2.1.1 Agni Finance

Project Overview: Agni Finance, founded in 2023, is a native AMM-based DEX on the Mantle network. It currently ranks as the number one project on Mantle by TVL, with $121 million in assets. The platform has facilitated a total trading volume of $3.92 billion. Agni Finance supports six currencies and offers 20 trading pairs, with its most active pair being METH/WETH. According to CoinGecko, Agni's latest 24-hour trading volume is $4.36 million.

Agni Finance's TVL experienced a surge in July of this year, doubling in size, and has since stabilized at over $100 million, marking a twofold increase compared to Q2 levels.

X: @Agnidex

2.1.2 INIT Capital

Project Overview: INIT Capital, founded in 2023, is a platform for dApp and user interactions, offering both permissionless access to a unified liquidity pool and efficient yield management. As a DeFi liquidity infrastructure, INIT provides a variety of services, including lending and yield strategies. The platform is now live on Mantle and Blast. As of this writing, INIT Capital has a market size of $110 million, with over $24 million in total loans issued.

In late February 2024, INIT Capital announced the completion of a $3.1 million seed funding round, led by Electric Capital and Mirana Ventures.

X: @InitCapital_

2.1.3 Merchant Moe

Project Overview: Merchant Moe is a decentralized exchange (DEX) established in 2024, developed as a product under Trader Joe. It is specifically designed and built to serve the Mantle ecosystem and community. The platform went live on the mainnet in January 2024, alongside the official launch of the $MOE token. Currently, it offers trading services for 14 currencies and 22 trading pairs, with the most active pair being METH/USDT.

According to MIP-28, Merchant Moe will receive liquidity support from the Mantle Treasury. Additionally, it has secured seed funding from the Mantle EcoFund.

X: @MerchantMoe_xyz

2.2   Wrapped assets

To be precise, Wrapped Assets are a category within DeFi. However, given Mantle's significant achievements in this field and its recent ongoing efforts and focus, we will analyze this segment separately.

On October 23rd, Bybit launched cmETH and plans to introduce COOK, the governance token for mETH, which quickly gained widespread attention. Before diving into a detailed analysis of cmETH and COOK, we first need to understand what mETH is.

2.2.1 mETH

mETH is a permissionless, non-custodial ETH liquid staking protocol where users can stake ETH and receive mETH (1:1). Currently, mETH operates 15,025 validator nodes and has staked over 480,000 ETH.

As the native LSD (Liquid Staking Derivative) protocol launched by Mantle, mETH has experienced rapid growth since its debut on December 4, 2023. In less than a year, its  TVL has reached $1.22 billion, making it the fourth-largest Ethereum LSD product.

Looking back at the origins of mETH, by June 2023, Ethereum had successfully transitioned from Proof of Work (PoW) to Proof of Stake (PoS). At that time, Lido Finance had already secured its market leadership with a TVL of $13 billion, and competitors like Rocket Pool (rETH) were intensifying competition in the liquid staking space. For mETH, which was just beginning its first round of discussions on the Mantle governance forum, it was clear that it did not have a first-mover advantage.

However, after thorough community governance discussions and technical preparations, the ETH liquid staking protocol was officially launched for all users on December 8, 2023 (initially called Mantle LSP). Thanks to its strong performance, mETH quickly made a name for itself in the highly competitive LSD space as a "new contender."

According to DeFiLlama data, within one week of its launch, Mantle LSP’s TVL surpassed $100 million and continued to climb, peaking at nearly $2.2 billion in March of this year. Currently, the TVL remains stable at over $1.2 billion, solidifying its position as the fourth-largest Ethereum LSD product. Additionally, official data shows that mETH has over 8,000 wallet users on Ethereum and 26,000 wallet users on the Mantle network, demonstrating impressive user growth and activity.

Holders of mETH can access various DeFi platforms to participate in liquidity pools, yield farming, and other financial activities without needing to unstake their ETH. Below are some examples of dApps available to users:

1. For trading, Bybit offers mETH/USDT and mETH/ETH pairs, while NativeX provides mETH/WETH pairs along with other exchange options.

2. For lending, INIT Capital allows users to deposit or borrow using ETH positions, Timeswap uses ETH as collateral, and MYSO Finance offers zero-fee swaps and customizable zero-liquidation loans.

3. For liquidity, Merchant Moe provides various liquidity pools, and Butter.xyz allows users to add liquidity to any available token, including ETH and MNT.

This is the unique advantage of mETH**：backed by Mantle's rich and mature ecosystem, it offers more liquidity scenarios, creating greater earning potential and stronger demand for mETH**. This healthy cycle of positive development further drives the continuous growth and prosperity of mETH.

2.2.2 cmETH

At the end of May 2024, six months after the official launch of mETH, the MIP-30 governance proposal was approved, introducing cmETH as a new Liquid Restaking Token (LRT). Specifically, mETH serves as a liquid staking token, where users stake ETH to receive mETH. On the other hand, cmETH is a liquid restaking token, allowing users to restake their mETH and receive cmETH on a 1:1 basis.

Similar to mETH, cmETH will be highly composable within the Mantle ecosystem (including EigenLayer, Symbiotic, Karak, Zircuit, and others), enabling users to explore additional yield opportunities through Layer 2 and decentralized applications and protocols while maintaining the benefits of mETH. Compared to mETH, cmETH's core advantage lies in offering more yield opportunities beyond basic staking rewards. These include rewards from various restaking programs (with potential airdrops) and additional AVS restaking yields.

In short, cmETH is a higher risk-reward option compared to mETH, making it more suitable for users looking to pursue higher returns within an acceptable risk range. Additionally, the MIP-30 governance proposal also announced the upcoming release of $COOK as the governance token for mETH.

On a related note, Mantle will kick off its highly anticipated first season of the Methamorphosis event in July 2024. This 100-day event will highlight the ecosystem advantages of mETH and officially announce partnerships with 23 well-known projects, including EigenLayer, Symbiotic, Karak, Zircuit, Pendle, and others. Users holding mETH can interact with these projects and complete tasks to earn rewards. Power points earned during this event can be exchanged for COOK tokens in the future.

Although the first season has ended, on October 23, mETH announced that the second season of Methamorphosis is about to begin. Without a doubt, the Mantle ecosystem is set to experience another wave of explosive growth.

2.2.3 FBTC

Mantle's Wrapped Assets are not limited to ETH. Within its ecosystem, the jointly launched FBTC with partners like Antalpha represents another important form of liquid asset. While WBTC has been a relatively successful method of bringing BTC into the Ethereum ecosystem, it has occasionally faced trust issues. In such cases, FBTC presents a better alternative.

FBTC is a cross-chain Bitcoin asset, pegged 1:1 with BTC, and offers cross-chain bridging and trading capabilities on both the Ethereum and Mantle networks. This enhances Bitcoin’s accessibility and usability. By introducing FBTC, Mantle not only diversifies the range of on-chain liquid assets but also provides users with new cross-chain trading options, improving the overall user experience.

Together with products like mETH, FBTC forms part of Mantle’s multi-dimensional strategy in liquidity and cross-chain solutions, helping to build its DeFi yield ecosystem. Supported by the Mantle ecosystem, this multi-chain asset strategy positions it as a strong competitor in the Layer 2 and cross-chain liquidity space.

2.3 Game

Grant Zhang has been appointed as the Head of Gaming at Mantle. Zhang brings a wealth of experience from the gaming industry, having led publishing teams for titles such as League of Legends and Game of Thrones. The projects he has been involved in have collectively surpassed 500 million downloads.

Mantle's approach to the gaming sector stands out from most other ecosystems. This difference is primarily reflected in its team composition. While other ecosystems often rely on top investors to drive their gaming initiatives, Mantle’s gaming team consists largely of experts in game publishing and operations. As a result, Mantle is able to offer more substantial support to its gaming partners, including tokenization design, economic models, game publishing, fundraising, and user acquisition.

Despite having one of the largest treasuries in the Web3 space, Mantle remains highly selective about the games it supports. Unlike other ecosystems that might aim to onboard hundreds of games through a "wide net" approach, Mantle has chosen to deeply collaborate with only around 7-8 games. This focused strategy allows these selected projects to receive significantly more funding and support.

Below, we will introduce some of the core gaming projects in more detail：

2.3.1 Catizen

Catizen is a cat-themed game built as a mini-program on Telegram. Players can swipe to feed their cats and earn rewards. According to a tweet from Telegram CEO Pavel Durov, as of July 30, 2024, Catizen has more than 26 million players—an impressive feat considering it was launched just over four months ago on March 19, 2024.

In April 2024, Catizen formed a strategic partnership with Mantle. However, the collaboration between Mantle and Catizen, along with its publisher Pluto Studio, can actually be traced back to August 2023. Whether it’s in game design, tokenomics, user acquisition, or even partnerships with TON, Mantle has provided comprehensive support. The reason Catizen chose to work with Mantle is as mentioned above: Mantle’s unique team structure offers professional and practical support for gaming projects, which can significantly drive their success—something other ecosystems cannot match.

For Mantle, hyper-casual games like Catizen and Tap to Earn are just the beginning. These types of games are well-suited for attracting users and can bring large Telegram user bases into mini-games. In the future, Mantle plans to grow alongside the Telegram mini-game ecosystem and continue releasing more suitable game products at every stage of its evolution.

As of this writing, Catizen has over 600,000 users on the Mantle blockchain. CATI ranks first on Mantle’s Natively Minted Value list with a value of $76.63 million.

X: @CatizenAI

2.3.2 MetaCene

MetaCene is a massive multiplayer online role-playing game (MMORPG) that integrates Web3 elements. It combines NFTs, blockchain mechanics, and AI technology with classic game features such as PvP battles and land management. MetaCene was founded by the experienced game developer Qunzhao (Alan) Tan.

As a large-scale MMORPG, MetaCene has more complex requirements in terms of cost, rules, and economic model design. Mantle, with teams like Game7, Hyperplay, Yeeha, and Community Gaming, can provide comprehensive support in areas such as user acquisition, engagement, wallet infrastructure, access points, and security. This makes Mantle a valuable partner for MetaCene.

Notably, after an in-depth experience with MetaCene, the founder of the leading professional blockchain gaming guild "Top Guild" praised the game's well-thought-out depth and its international player base, further proving its playability.

As of this writing, MetaCene has over 510,000 users, with daily active users once exceeding 360,000.

X: @MetaCeneGame

2.3.4 Blade of God

Blade of God X is a highly challenging hardcore action RPG AAA title with a dark Nordic aesthetic. As the official sequel to the Blade of God series, it immerses players in a mythological adventure. Players embody tragic yet heroic figures and embark on an epic journey across the vast, mysterious Nordic lands.

Developed by Void Labs and published by PGSoul Games, Blade of God X has received investment from OKX Ventures. The game supports cross-platform play, including PC, Android,and iOS, and is deeply integrated with the Mantle ecosystem, creating an open and immersive gaming experience. In recent game testing, players have the opportunity to earn up to 120,000 MNT in rewards. Additionally, Blade of God X has secured investment from Web3Labs as part of its first accelerator program.

X: @BladeofgodX

2.4 RWA

Ondo Finance

Project Overview: Ondo Finance is a financial protocol focused on the Real World Asset (RWA) sector. Its primary business at this stage is tokenizing high-quality assets such as U.S. Treasury bonds and money market funds within a compliant framework, enabling blockchain users to invest and trade these assets. Over the past year, the RWA sector, particularly U.S. Treasuries, has seen its TVL grow sixfold, positioning it as a major driving force in the RWA industry. Ondo Finance's TVL has grown rapidly since April, currently ranking third in the RWA sector, giving it a notable first-mover advantage with promising future growth potential. Ondo Finance supports eight blockchains, with its TVL ranking third on Mantle, surpassing networks like Aptos, Arbitrum, and Sui.

X: @OndoFinance

2.5 Other Ecosystem-Related Matters

Mantle has consistently dedicated significant effort to ecosystem development and support, serving as a model for other blockchains. Below is some information related to ecosystem support and activities：

2.5.1 Ecofund

The Mantle EcoFund is a $200 million eco-fund provided by Mantle Treasury, aimed at promoting the adoption of developers and dApps on the Mantle network. It prioritizes investments in teams building high-quality and innovative projects within the Mantle ecosystem, with the potential to increase investment in promising projects when appropriate.

According to the official website, the EcoFund has already supported over 13 projects, with several, such as INIT Capital, Catizen, and Merchant Moe, growing into key players within the Mantle ecosystem.

2.5.2 Mantle Grants

To further enhance the vitality of its ecosystem, Mantle has launched two incentive programs:

1. Mantle Scouts Program: Launched in April 2024, this program empowers 16 industry leaders to allocate $1 million worth of MNT tokens to high-quality projects within the ecosystem, supporting innovative initiatives. The program offers mentorship, networking resources, and financial support to accelerate the success of projects within the Mantle ecosystem.

2. Public Grants: Mantle provides grants (up to $20,000 worth of MNT) to early-stage projects to foster a vibrant developer community.

2.5.3 Game 7

As gaming is a key focus for Mantle's ecosystem development，Mantle has partnered with Game7 to launch a game accelerator program. Leveraging Mantle Network's infrastructure, Game7 provides essential tools for game developers, such as an NFT marketplace, cross-chain bridges, and gaming DAOs. These tools aim to deliver a high-quality user experience and ecosystem connectivity to the games incubated and invested in by Game7. Together, they are committed to advancing the development of permissionless and interoperable gaming worlds.

2.5.4 Sozu Haus

In terms of developer engagement, Mantle has sponsored and hosted 26 hackathons worldwide, along with numerous technical workshops and online AMA sessions. Over 900 hackathon projects were submitted. Additionally, Mantle organized six exclusive Sozu Haus events (Mantle's mini accelerator and maker house program) while also hosting large global crypto events to attract top founders and developers.

2.5.5 Other Ecosystem Partners

Beyond its own extensive ecosystem, Mantle actively collaborates with other industry partners. These partnerships not only support the expansion of Mantle's ecosystem but also provide valuable resources in areas such as capital support, user traffic, development resources, market trust, industry endorsement, and developer education.

For example, Mirana Ventures has continuously provided funding and resource support to the Mantle ecosystem. Mirana Ventures was also listed among RootDada's Top 100 Investment Institutions of 2023. With a fund management scale reaching tens of millions of dollars, it has incubated and supported multiple projects. Some of its notable investments include TON,Morpho, Zircuit, and Story Protocol. Additionally, Mantle is the sole technical partner of Eigenlayer.

In the developer community space, Moledao is another key supporter of Mantle's ecosystem. Moledao is committed to connecting and supporting early-stage Web3 projects and developers. Through a series of Web3 public courses, hackathons, and other offline events, Moledao has helped Mantle engage with and attract numerous outstanding blockchain projects and developers. As a developer community, Moledao continuously provides technical innovation support and talent reserves for Mantle, helping it rapidly build and improve its blockchain ecosystem.

2.5.6 Ecological Incentives

Mantle's large treasury (nearly $3 billion, the second-largest globally) is its strongest asset. The interest generated from the treasury through PoS (Proof of Stake) can be directly distributed to users. For instance, restaking rewards from EigenLayer can be used as ecological incentives. This reward mechanism significantly boosts user engagement within the ecosystem. By interacting with or staking in the ecosystem, users not only contribute to its development but also receive a share of the treasury's earnings, making the entire ecosystem more dynamic and vibrant.

3. Highlights Summary

In just over a year, Mantle has demonstrated its strong competitiveness in the Layer 2 space through impressive growth data. For current users, with deeper ecosystem integration and the arrival of cmETH and COOK, Mantle's future growth momentum remains strong. In light of this foreseeable growth, we have the following key insights：

1. Bybit's Strong Endorsement: Thanks to the close relationship between Mantle and Bybit, outstanding projects within the Mantle ecosystem will have the opportunity to be listed on Bybit, gaining exposure to more investors through Bybit's recommendations. For dApp development teams, this represents an attractive resource and exposure channel.

2. Support from the World's Second Largest Treasury: With nearly $3 billion in Mantle’s Treasury, it serves as a powerful backing for projects built on the Mantle Network and is a key source of confidence for its ecosystem development. Mantle is creating a more rewarding financial and consumer-focused on-chain application hub, where interest generated from the treasury can provide additional subsidies to users.

3. Technical Architecture Advantages: Mantle’s modular design offers significant scalability and cost optimization benefits. This flexibility allows Mantle to innovate more openly.

4. Fourth Largest Ethereum LSD Product: Mantle’s top four TVL contributors come from the DeFi sector. Achieving liquidity integration, which is central to DeFi’s vision, is crucial. The Mantle ecosystem is focused on addressing liquidity fragmentation and has made significant investments in liquid staking. With its advanced underlying design and strong ecosystem support, mETH has quickly grown into the fourth-largest Ethereum LSD product.

5. Thriving Gaming Ecosystem: To date, Mantle’s gaming sector has launched seven flagship products, with projects like Catizen and MetaCene standing out in their respective niches. Mantle plans to gradually release all its gaming products over the next few quarters to further drive ecosystem growth.

6. Comprehensive Support for Developers and Founders: The Web3 industry needs more innovation and crypto use cases. Mantle has implemented various developer incentive programs, such as Sozu Haus’s Hacker House initiative, and has set aside a $200 million EcoFund to actively discover and support top developer talent. For developers who are talented, creative, and passionate, Mantle provides an ideal platform for growth.

Mantle, as a cost-effective and forward-looking Layer 2 project, has the potential to lead the development of on-chain transactions and applications, providing an ideal ecosystem for DeFi and decentralized applications. We should not only recognize Mantle's potential as a Layer 2 solution but also compare it within the broader blockchain space. In terms of performance, ecosystem, and TVL, Mantle has already surpassed most Layer 1 chains. Considering its relatively short growth history, strong treasury backing, and consistent track record of "doing the right thing," we have every reason to anticipate the surprises Mantle could bring to the Web3 world.

Could the next paradigm-shifting innovation happen on Mantle?