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Monad Token Shows Divergence Between Usage and Price Action
The native token of the newly launched Layer-1 blockchain, Monad, experienced further declines on Thursday amid volatility that has persisted since its debut just three days ago. The token fell 15% in the last 24 hours to $0.03, down from $0.04 during late U.S. trading, according to CoinGecko data. Despite the recent drop, Monad remains up 47% since its November 25 launch, buoyed by a strong initial rise from an opening price near $0.02.
Early Profit-Taking Signals Emerge
Market indicators suggest early token holders may be booking profits. A bid-ask delta indicator at 10% order book depth turned negative after Monad stabilized around $0.047 on November 26, signaling that sellers are currently outweighing buyers in that specific price zone. Derivatives activity has further amplified the spot-driven decline.
Analysts note that steady open interest combined with a sharp fall in cumulative volume delta indicates new short positions are being opened, adding downward pressure to the token.
Long-Term Potential Remains Under Scrutiny
“Expectations are still constructive long term: investors are looking for real workloads, genuine developer traction, and ecosystem partners to validate Monad’s high-throughput thesis,” said Shivam Thakral, CEO of Indian crypto exchange BuyUCoin, speaking to Decrypt. “But after the recent drop, the market will demand evidence, not just benchmarks, before re-rating the asset.”
Network Spoofing Incident Contributes to Volatility
The sell-off follows a network spoofing event that surfaced shortly after Monad’s mainnet launch. Bad actors allegedly spoofed fake token transfers, creating confusion and shaking trust in the platform. Monad CTO and co-founder James Hunsaker confirmed the issue, cautioning users about transactions that falsely appeared to originate from his wallet.
On-Chain Metrics Show Strong Usage
The sharp price correction contrasts with strong network activity. According to Artemis data, Monad has attracted nearly 150,000 active users and recorded 4.7 million on-chain transactions. Stablecoin transfers on the blockchain surged to $711 million, supported by collaborations with Solana and deBridge to enhance cross-chain asset flows.
Price Divergence Highlights Market Trends
The disconnect between robust on-chain growth and subdued token performance reflects a broader trend in the current market. Risk-off sentiment continues to weigh across the crypto sector, creating volatility even for newly launched networks with strong adoption metrics.
