- Mantra’s collapse has shaken trust in the crypto market, reviving fears of instability and drawing comparisons to the LUNA crash.
- However, optimism is growing around XRP’s potential spot ETF approval, which could restore institutional confidence and support a market rebound.
The cryptocurrency market is facing a period of sharp division, with concerns surrounding the recent collapse of the Mantra project clashing with growing optimism surrounding XRP’s potential inclusion in a spot ETF. While the fall of Mantra has cast a shadow over the crypto space, XRP’s spot ETF prospects are providing a glimmer of hope for traders and investors alike.
The Mantra Collapse: A Setback for Trust in Crypto
The downfall of Mantra (OM) has deepened skepticism within the crypto market. According to analysts from Santiment, the timing and scale of the crash have sparked comparisons to the LUNA disaster in 2022, which sent shockwaves through the market. Though there is no conclusive evidence of fraud, the magnitude of OM’s crash has left behind a sense of lingering mistrust. The collapse has raised concerns about liquidity risks and potential market manipulation, especially as no immediate plans to rebuild confidence have been clearly laid out by the OM team.
The sudden crash has served as a stark reminder of the volatile nature of cryptocurrencies, and the damage done to Mantra’s reputation may prove difficult to repair. As trust in some projects falters, the broader market remains on edge, wondering where the next major setback might come from.
XRP’s ETF Hope: A Bright Spot for the Future
In stark contrast, analysts are finding reason for optimism in the growing prospects of XRP being included in a spot exchange-traded fund (ETF). Bloomberg’s ETF analyst Eric Balchunas has emphasized that the chances of this approval happening in 2025 are high, with Ripple’s projections showing a substantial future for tokenized assets. According to Ripple’s internal estimates, tokenized asset markets could soar from $0.6 trillion today to a staggering $18.9 trillion by 2033, positioning XRP as a major player in the future of finance.
This anticipated approval of a spot XRP ETF offers a positive signal for the broader market, as institutional interest in digital assets continues to grow. The introduction of such an ETF could provide a much-needed boost in credibility and investment for XRP, reaffirming its role as a cornerstone of the crypto ecosystem.
A 2x XRP ETF is launching tmrw in US, the first-ever XRP ETF on the market. Very odd (maybe a first) that a new asset’s first ETF is leveraged. Spot XRP still not approved, altho our odds are pretty high. Story via @isabelletanlee pic.twitter.com/Eg4Wq5Y1Qi
— Eric Balchunas (@EricBalchunas) April 7, 2025
Looking Ahead: Will Market Conditions Improve?
Despite the positive outlook surrounding XRP, many cryptocurrencies are still trading below recent highs. Santiment analysts point out that the market’s future direction largely depends on the decisions made by the Federal Reserve regarding interest rates. If the Fed implements rate cuts and the ongoing trade tensions are resolved, it could pave the way for both traditional and crypto markets to recover.
In conclusion, while the collapse of Mantra has shaken trust in the crypto space, XRP’s potential spot ETF approval provides a contrasting wave of optimism, suggesting that the market could eventually find its footing again. The road ahead may be uncertain, but signs of institutional confidence in XRP offer hope for the future.
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