While Mantra’s downfall has deepened market skepticism, XRP’s likely inclusion in a spot ETF offers a contrasting wave of optimism for traders, Santiment’s analysts say.

The sentiment in the crypto market remains deeply polarized as the collapse of the Mantra (OM) project raises concerns about trust, while the growing prospects for an XRP (XRP) exchange-traded fund inject optimism into the space, analysts at Santiment note.

In a recent research report, the analysts argued that OM’s downfall has “introduced new waves of doubt just as confidence was beginning to return,” drawing comparisons to the LUNA crash, which devastated the market in 2022.

“While no hard evidence of fraud has surfaced, the timing, magnitude and aftermath of the OM crash have left a lingering sense of mistrust.”

Santiment

Although the OM team has pledged to rebuild trust, the damage to the project’s reputation may actually be challenging to overcome, the analysts suggest.

On the other side, the growing interest in XRP’s potential spot ETF approval offers a glimmer of hope. As Bloomberg ETF analyst Eric Balchunas earlier noted that the odds of a spot XRP ETF approval in 2025 are “pretty high,” Ripple’s internal projections show that tokenized asset markets could soar from $0.6 trillion today to $18.9 trillion by 2033, making XRP a key player in that future.

Nonetheless, the analysts point out that many assets are still trading at a loss compared to recent highs. Santiment notes that much of the crypto market’s direction depends on the Federal Reserve’s decisions regarding interest rates, suggesting that if rate cuts occur alongside clearer trade resolutions, it could set the stage for a strong recovery in both traditional and crypto market.