The crypto market is currently experiencing a split sentiment following the collapse of the Mantra project, which has raised concerns about trust.
Analysts at Santiment noted that this incident had reignited doubts just as confidence was recovering and compared it to the 2022 LUNA crash. While no definitive evidence of fraud has been found, the circumstances surrounding the Mantra collapse have fostered ongoing mistrust in the market. Conversely, the potential approval of an XRP exchange-traded fund (ETF) offers a glimmer of optimism amid the uncertainty.
Despite the OM team’s commitment to restoring confidence, analysts suggest that the damage to the project’s reputation may be challenging to overcome. This lingering uncertainty is tempered by the rising optimism surrounding XRP.
On the other hand, the growing interest in XRP’s potential spot ETF approval offers a glimmer of hope. Bloomberg ETF analyst Eric Balchunas recently noted that the odds of a spot XRP ETF being approved in 2025 are “pretty high.” Ripple’s internal projections further bolster this optimism, estimating that tokenized asset markets could grow from $0.6 trillion today to $18.9 trillion by 2033. This projection positions XRP as a key player in the evolving tokenized asset landscape.
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
However, analysts also point out that many assets remain below their recent highs. Santiment observes that much of the crypto market’s trajectory will depend on the Federal Reserve’s decisions regarding interest rates. If the Fed cuts rates and trade disputes are resolved more clearly, this could set the stage for a strong recovery in both traditional and crypto markets.
Additionally, Brian, a contributor at Santiment, analyzed how US interest rate hikes affect the cryptocurrency market, emphasizing traders’ sensitivity to FOMC meetings. He noted that the Federal Reserve’s rapid tightening in 2022—raising rates from 0.25% in March to 4.50% by December due to peak inflation of 9.1%—significantly impacted crypto prices, marking one of the fastest tightening cycles in history.
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