Metal DAO up 17% in 24 hours, US Congress engagement becomes a key catalyst

MTL has increased by 17.18% in the past 24 hours, rebounding from $0.37 to $0.45. The main driver behind this surge is a significant policy-related news: the CEO of Metallicus, the core developer of the Metal ecosystem, had a discussion with Congressman Buddy Carter, a member of the U.S. Congress Blockchain Caucus, regarding digital assets, innovation, and U.S. competitiveness. This high-level engagement sends positive policy signals and validates Metal’s market value as a compliance-oriented ecosystem.

Price Performance and Market Response

The over 2100% surge in trading volume is noteworthy. This indicates that not only prices are rising but market sentiment and trading activity are heating up simultaneously. MTL also performed well on Binance Futures, with a 6.01% increase in the last 15 minutes, making it the biggest gainer at that moment.

Why Policy Favorability Matters

Meeting with U.S. lawmakers holds special significance

The meeting between Metallicus CEO and Congressman Buddy Carter took place at 4:15 PM ET on January 12. Buddy Carter is a key member of the U.S. House Financial Services Committee and leads the Blockchain Caucus, wielding real influence in crypto policy-making. This is not an ordinary business discussion but a direct dialogue between a crypto project and U.S. policymakers.

The importance of this engagement lies in:

• Metal gaining recognition at the policy level
• U.S. regulators showing an open attitude toward compliant crypto projects
• Digital assets and financial innovation becoming key topics in U.S. competitiveness

Metal’s compliance advantage becomes crucial

Metal L2 is positioned as a “compliance-oriented Layer 2 solution,” a stance that is highly valuable in the current policy environment. Compared to projects operating on the regulatory edge, Metal emphasizes compliance and trustworthiness from architecture to ecosystem applications.

Metal’s layered architecture reflects this:

• L0 layer provides core connectivity via the Metal blockchain, supporting financial institutions in creating customized sidechains
• L1 layer offers a seamless deployment framework for Ethereum applications
• L2 layer handles performance improvements and scalability

This design essentially paves the way for traditional financial institutions to enter the crypto ecosystem, which aligns with what U.S. policymakers want to see.

Ecosystem Integrity Supporting Long-term Value

Beyond policy benefits, the integrity of the Metal ecosystem itself also supports the value of MTL:

• Metal Dollar (XMD): a new generation stablecoin backed by multiple non-algorithmic reserves, addressing risks associated with traditional algorithmic stablecoins
• Metal Pay: provides fiat on-ramps and L2 ecosystem entry points, connecting traditional finance with crypto
• Metal X: integrates trading, lending, borrowing, yield farming, and other DeFi functions, creating a decentralized super-platform

Holders of MTL can gain governance rights and fee discounts within the Metal ecosystem. As the ecosystem’s applications become more comprehensive, the practical utility of MTL increases.

Market Sentiment and Technical Outlook

From a technical perspective, MTL is currently in overbought territory according to RSI (based on the latest news). This usually indicates that the short-term rally has been substantial and may face some correction. However, market sentiment suggests that this surge is supported by fundamentals rather than pure speculation.

The volume spike reflects increased market participation. When positive news is released with sufficient trading volume, it indicates that the movement is driven by broader market recognition rather than a few funds.

Future Focus

Policy engagement is just the beginning. The real turning points will depend on:

• Progress in Metal ecosystem applications, especially the maturity of Metal X’s DeFi features
• U.S. regulatory authorities’ subsequent stance and support measures for Metal
• Whether traditional financial institutions start deploying applications on Metal L2
• The actual influence and valuation of MTL as a governance token

Summary

The 17.18% increase reflects a market re-evaluation of the Metal project. Policy engagement has boosted investor confidence, and ecosystem integrity provides long-term support. However, it’s important to recognize that crypto markets remain highly volatile; short-term gains do not guarantee continued upward movement. The key is whether Metal can translate policy benefits into tangible ecosystem development and real-world applications. For MTL, this policy engagement is more of a new starting point than an endpoint.