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.

As the collapse of the Mantra (OM) project raises concerns about trust, the growing prospects for an XRP (XRP) exchange-traded fund inject optimism into the space.

The crypto market is still grappling with a wave of skepticism despite the recent rally, with the collapse of Mantra (OM) deepening traders' distrust, while the possibility of an XRP (XRP) exchange-traded fund is offering a contrasting spark of optimism, according to analysts at Santiment.

In a recent research report, the analysts stated that OM’s downfall has “introduced new waves of doubt just as confidence was beginning to return,” adding that the project's collapse is quickly 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."

While the OM team has vowed 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 sliver 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.

2x XRP ETF 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

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 markets.