What could the highlighted performance of platform tokens like MNT mean for the broader DeFi sector, and how might it shift capital allocation between competing Layer‑1 and Layer‑2 tokens?

The surge in Mantle (MNT) – underscored by multiple $1 million‑plus whale moves and a 70‑point sentiment boost – signals that investors are now rewarding platform‑token economics that directly capture on‑chain activity (transaction fees, staking rewards, and governance incentives). As MNT proves that a Layer‑2 built on a high‑throughput, low‑cost roll‑up can deliver tangible yield to token holders, the broader DeFi narrative is shifting from “protocol‑only” tokens (e.g., Uniswap’s UNI) toward infrastructure tokens whose value scales with network usage. This reinforces the hypothesis that capital will increasingly flow to ecosystems where tokenomics align with real‑world DeFi volume, encouraging developers to launch or migrate dApps onto such Layer‑2s to tap both liquidity and token‑based incentives.

Consequently, we can expect capital re‑allocation from legacy Layer‑1s that lack strong fee‑capture mechanisms (e.g., Ethereum’s ETH, Solana’s SOL) toward Layer‑2s and hybrid L1/L2 projects that demonstrate clear fee‑backing and active whale participation. Traders should watch the MNT‑ETH and MNT‑ARB relative strength indices; a sustained breakout above the 50‑day EMA on high on‑chain activity would merit a long‑bias on MNT and other emerging platform tokens (e.g., zkSync’s ZKS, Polygon’s MATIC) while trimming exposure to pure L1 assets lacking fee‑distribution features. In practice, a tactical split of 60 % into high‑yielding L2/platform tokens and 40 % into diversified L1 exposure could capture upside from the re‑routing of DeFi capital while preserving downside protection.