MANTA Governance Token Falls Below $1B FDV, TVL Sub-$50M Amid Market Scrutiny

The value of governance tokens for Layer 2 (L2) solutions is facing significant scrutiny as market participants increasingly view them as overvalued. MANTA, an L2 token, has seen its fully diluted valuation (FDV) drop below $1 billion, with its total value locked (TVL) falling to sub-$50M (!!!). This decline reflects a broader trend where L2 governance tokens, initially valued in the billions based on incentivized protocol activity, are now perceived as lacking utility. There is no demand for these governance tokens, and utility tokens without utility are seen as memes. Market experts suggest a shift in focus from funding L2 solutions to developing applications, signaling a potential end to the current venture capital and key opinion leader funding meta for vanilla L2s.