MANTRA token sinks 18% to record low amid blockchain halt

The MANTRA token sinks, experiencing an 18.5% drop to an all-time low after the MANTRA Chain was preventatively halted due to an unspecified incident. The token's value fell from $0.005060 to $0.004126 on Thursday evening, later recovering slightly to $0.0044 but remaining down by approximately 10% over 24 hours.

This market reaction was accompanied by a nearly 600% surge in trading volume, reaching $24 million. MANTRA announced on Friday that it was actively investigating the incident and had paused the network as a precautionary measure.

MANTRA confirmed that the root cause and a timeline for resolution were not yet known, with all endpoints and transactions frozen. This halt has effectively prevented any asset movement on the MANTRA Chain, prompting affected exchanges to suspend deposits and withdrawals without a specified resumption timeline.

The incident has been categorized as a full outage, impacting public endpoints, validators, bridge migration operations, and MANTRA-managed Inter-Blockchain Communication relays. The team has stated that the network will not be restarted until its safety can be fully assured. The last recorded block was 17,449,398, produced shortly before MANTRA issued its initial incident notification.

MANTRA has not yet clarified whether the token's price fluctuation is directly connected to the incident or if any assets have been compromised. This recent decline follows a significant drop in April 2025, when MANTRA's former OM token lost over 90% of its value, amounting to more than $5 billion in market capitalization.

In June, Inveniam Capital Partners announced its intention to acquire MANTRA, building on an earlier $20 million investment made in 2025. This acquisition announcement came after a period of layoffs and restructuring in January, which the CEO had described as occurring during the project's most challenging year.