Monad price has suffered a harsh reversal in the past few days, moving from the all-time high of $0.0492 to the current $0.0370. It has dropped by 25% from its highest point this week, even as the network growth continues. Its transactions, stablecoin supply, and DeFi assets have surged, making it one of the best-performing layer-1 chains this week. So, why did the MON price crash?
Monad Price Has Dropped Despite Key Metrics Growth
Third-party data shows that Monad’s network is growing after its mainnet launch. One of these numbers is that transactions are accelerating.
According to Nansen, the number of transactions has soared by 637% in the last seven days to 14.7 million. Its active addresses soared to over 404,000, while its collected fees have rocketed to over $111k.
Its fees in the last seven days is higher than what popular networks like Aptos, Near Protocol, Stacks, and Algorand made.
Meanwhile, the total value locked (TVL) in Monad has moved closer to the $200 million metric. The top networks driving this growth are Uniswap, Upshift, Morpho, and Gearbox.
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Additionally, the DEX volume in Monad soared to over $215 million in the last 24 hours, driven mostly by Uniswap. In contrast, Cardano’s DEX network has handled less than $20 million in the last 30 days.
More data reveal that the stablecoin supply in Monad has continued growing this month. It jumped to over $221 million, higher than other popular networks like Cardano and Algorand.
Monad’s ecosystem growth will likely continue as more developers join the bandwagon. Some of the potential companies that may move to its platform are Aave, Pendle, and Maple Finance.
Why MON Token is Crashing
There are three main reasons why the Monad price is crashing despite its network growth. First, the drop is happening as some investors book profits after the initial post-launch surge.
It is common for a newly launched token that rises to plunge after a few days. Three perfect examples of this are World Liberty Financial (WLFI), Somnia (SOMI), and Pi Network (PI).
Second, the decline is happening after Arthur Hayes changed his mind and recommended selling it. After predicting that the Monad price would hit $10, Hayes predicted that it would plunge to zero eventually.
Third, there are concerns that Monad’s open interest has started to come down. Data compiled by CoinGlass shows that the open interest dropped to $4.29 million on Friday, down from this month’s high of $6.67 million.
Looking forward, chances are that the Monad price will continue falling in the coming weeks as many of the airdrop investors start selling their tokens.
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