Crypto investor sentiment has experienced a notable downturn this week following a dramatic decline of over 90% in the value of Mantra’s OM token, which plummeted within hours on April 13. This event has sparked immediate comparisons to past major market disruptions, including the infamous Terra-Luna collapse. In addition, a report released by Coinbase aimed at institutional investors has raised alarms, 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 Unveils Liquidity Challenges in Crypto
The recent nosedive of Mantra’s OM token underscores a significant concern in the cryptocurrency sector regarding the unpredictable liquidity levels during weekends, which can amplify market volatility. On April 13, the OM token’s price dropped from approximately $6.30 to below $0.50, igniting allegations of market manipulation from frustrated investors, as reported by Cointelegraph. Blockchain analysts are still investigating the causes behind this sudden collapse, but Gracy Chen, CEO of the cryptocurrency exchange Bitget, has pointed out that this incident reveals critical issues not only within Mantra but across the entire industry. “The crash of the OM token has exposed several pressing problems that we face, such as wealth concentration and opaque governance, combined with sudden inflows and outflows on exchanges,” Chen stated during an appearance on Cointelegraph’s Chainreaction daily X show.
### Coinbase Reports Suggest Bear Market with Possible Recovery in Q3
A recent monthly review by Coinbase, a publicly traded cryptocurrency exchange based in the U.S., indicates that while the crypto market has contracted significantly, there are signs that it may be preparing for a rebound. According to Coinbase’s report dated April 15, the market capitalization of altcoins has decreased by 41% from its peak of $1.6 trillion in December 2024, down to $950 billion by mid-April. Data from BTC Tools reflects that this figure dropped to a low of $906.9 billion on April 9, and was recorded at $976.9 billion at the time of reporting. Furthermore, investment from venture capital into crypto projects has reportedly fallen by 50% to 60% since 2021-2022. David Duong, Coinbase’s global head of research, warned that several indicators suggest the onset of a new “crypto winter,” fueled by pervasive negative sentiment linked to global tariffs and potential further escalations.
### Manta Network Co-Founder Describes Targeted Zoom Phishing Attempt by Lazarus
Kenny Li, the co-founder of Manta Network, revealed that he was the target of a sophisticated phishing scheme via a Zoom call, where attackers employed live footage of known individuals to deceive him into downloading malware. The presentation appeared genuine, with the impersonated person’s camera activated, but the absence of audio and a dubious prompt to download a script raised alarms for Li, who shared his experience in an April 17 X post. “I could see their legitimate faces, and everything seemed authentic. However, I couldn’t hear them, and the message prompted an update for Zoom, requesting me to download a script file. I quickly exited the call,” he recounted. When Li sought to verify the impersonator’s identity through a Telegram call, the attacker refused and subsequently deleted all communications and blocked him. Li suspects the North Korean state-sponsored Lazarus Group orchestrated the attack. He managed to take screenshots of the interaction before the messages were erased, noting that the images used during the call appeared to be pulled from actual recordings of team members rather than being AI-generated.
### AI Tokens and Memecoins Dominate Crypto Discussions in Q1 2025
The cryptocurrency landscape continues to recycle established narratives, with few new trends emerging to supplant those dominating the first quarter of 2025. According to a quarterly research report from CoinGecko, artificial intelligence tokens and memecoins were the primary topics of interest, accounting for 62.8% of overall investor engagement. AI tokens alone captured 35.7% of global attention, surpassing the 27.1% share held by memecoins, which retained its position in second place. Among the top 20 crypto narratives for the quarter, six were associated with memecoins, while five pertained to AI. Bobby Ong, co-founder and COO of CoinGecko, remarked in an April 17 X post that new narratives have yet to take hold, indicating a collective fatigue with the repetition of previous trends.
### Crypto Lending Down 43% from Peak, DeFi Borrowing Experiences Remarkable Growth
The crypto lending market has seen a substantial decline from its previous peak of $64 billion, dropping to $36.5 billion by the end of Q4 2024. However, decentralized finance (DeFi) borrowing has rebounded impressively, showing a recovery of over 900% from its bear market lows. Crypto lending allows borrowers to leverage their cryptocurrency holdings as collateral to secure loans in either crypto or fiat, while lenders can earn interest on their assets. Research from Galaxy Digital published on April 14 reveals that the lending market is down over 43% from its all-time high, attributed to the collapse of several centralized finance (CeFi) lenders such as Genesis, Celsius Network, BlockFi, and Voyager, which went bankrupt within two years amid falling crypto valuations. This downfall contributed to an estimated 78% contraction in the lending market, with CeFi lending experiencing an 82% reduction in open borrowings.
### DeFi Market Update
Recent data from Cointelegraph Markets Pro and TradingView indicates that most of the top 100 cryptocurrencies by market capitalization concluded the week on a positive note. Among the standout performers, the decentralized exchange (DEX) Raydium’s token surged over 26%, making it the week’s top gainer, followed closely by the AB blockchain utility token, which rose by more than 19%.
Thank you for following our summary of the week’s most significant developments in decentralized finance (DeFi). Be sure to join us next Friday for more insights, stories, and education on this rapidly evolving sector.
