As someone who’s been deep in the crypto trenches for years, I’ve seen my share of wild price swings and network booms. On my blog at https://phocrypto.com/, I love breaking down these trends to help fellow investors make sense of the chaos. Today, let’s talk about Monad—a promising EVM-compatible Layer 1 blockchain that’s making waves post-mainnet launch. Its token, MON, hit an all-time high of about $0.0488 just days ago, but now it’s trading around $0.0365, down roughly 25%. What’s baffling is that this drop is happening right as the network’s activity is skyrocketing. Transactions are up, stablecoins are flowing in, and the total value locked (TVL) is climbing fast. So, why the disconnect? Let’s unpack this step by step.
Monad’s Network Is Thriving Post-Mainnet Launch
Monad’s mainnet went live on November 24, 2025, and the growth since then has been impressive. Designed for high performance with up to 10,000 transactions per second (TPS) and sub-second block times, it’s attracting developers and users who want speed without sacrificing Ethereum compatibility.
Key metrics tell the story:
- Transactions Exploding: Data from analytics platforms like Nansen shows transactions jumping over 355% in the past week, hitting millions daily.
- Active Users and Fees: Active addresses have surged to hundreds of thousands, and collected fees in the last 24 hours alone topped $172,000—outpacing established networks like Aptos, Near Protocol, Stacks, and Algorand over similar periods.
- TVL Approaching New Heights: The total value locked in Monad’s ecosystem is now at $151.78 million, driven by top protocols such as Uniswap, Upshift, Morpho, and Gearbox. That’s a 20% increase in just the last day.
- DEX Volume on Fire: Decentralized exchange (DEX) trading hit $215 million in the past 24 hours, mostly via Uniswap. For comparison, Cardano’s DEX volume has been under $20 million over the last month.
- Stablecoin Supply Growing: Stablecoins on Monad have reached $221.73 million, surpassing networks like Cardano and Algorand. This signals strong liquidity and confidence from users parking assets there.
This momentum isn’t slowing down. With more dApps launching—Aave, Pendle, and Maple Finance could be next—Monad is positioning itself as a go-to for DeFi enthusiasts tired of high fees and slow confirmations on other chains.
But Why Is the MON Token Price Crashing?
Despite all this positive on-chain activity, MON’s price has taken a hit, dropping from its peak of $0.0488 on November 26 to around $0.0365 today. Market cap sits at about $394 million, with 24-hour trading volume at a hefty $530 million, but the sentiment has shifted. Here are the main culprits behind the decline:
- Profit-Taking After the Launch Hype: It’s a classic crypto tale. New tokens often surge on launch excitement, only to see early holders cash out. We’ve seen this with projects like World Liberty Financial (WLFI), Somnia (SOMI), and Pi Network (PI). Monad’s mainnet buzz drove the initial pump, but now some investors are locking in gains, adding selling pressure.
- Influential Voices Swaying the Market: Arthur Hayes, the outspoken founder of BitMEX, initially hyped Monad with a bold $10 price prediction. But he flipped the script recently, advising sells and even forecasting a drop to zero. In crypto, where sentiment rules, a word from a big name like Hayes can trigger waves of FUD (fear, uncertainty, doubt) and prompt exits.
- Declining Open Interest: Futures data from CoinGlass reveals open interest in MON dropping from a monthly high of $6.67 million to $4.29 million. Lower OI often signals waning trader enthusiasm, which can amplify price drops in volatile markets.
These factors create a perfect storm: strong fundamentals clashing with short-term market psychology.
Related: 10 Altcoins That Plummeted in November 2025: What Went Wrong and Lessons for Investors
Looking Ahead: Will Monad Recover?
Crypto is unpredictable, but Monad’s solid tech and growing ecosystem give it a fighting chance. If airdrop recipients (common in new launches) start dumping tokens, we might see more downside in the coming weeks. However, sustained network adoption could flip the script, drawing in more capital and stabilizing the price.
As an investor, I’d keep an eye on TVL milestones—like breaking $200 million—and any big protocol integrations. If Monad delivers on its performance promises, it could challenge bigger players like Solana or Ethereum Layer 2s.
What do you think? Is this a buying opportunity or a red flag? Drop your thoughts in the comments below, and subscribe to https://phocrypto.com/ for more crypto breakdowns.
*Disclaimer: The information provided in this article is for educational purposes only and does not constitute financial advice. Crypto investments carry high risk, and prices can fluctuate wildly. Always do your own research (DYOR) before investing. I may hold positions in mentioned assets, but all opinions are my own.
