The Monad price has suffered a sharp reversal since its recent launch, falling from an all-time high of $0.0492 to $0.0370. It has dropped by 25% from its peak this week, even as 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 has been growing since 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 skyrocketed to over 404,000, while its collected fees have soared to over $111k.
Its fees over the last seven days are higher than those of popular networks like Aptos, Near Protocol, Stacks, and Algorand.
Meanwhile, the total value locked (TVL) in Monad has moved closer to the $200 million milestone. 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 show that the stablecoin supply in Monad has continued to grow this month. It jumped to over $221 million, higher than other popular networks like Cardano and Algorand.
Monad’s ecosystem will likely continue to grow as more developers join the bandwagon. Some potential companies that may move to its platform include 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 due to some investors booking profits after the initial post-launch surge.
It is common for a newly launched token to rise and then 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 also predicted it would eventually plunge to zero.
Third, there are concerns that Monad’s open interest has begun to decline. 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 ahead, the Monad price is likely to continue falling in the coming weeks as many airdrop recipients and early investors start selling their tokens.
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