Key Highlights
- On-chain data shows Monad’s TVL stuck near $185M despite heavy VC backing.
- The post-launch fallout and airdrop controversy continue to pressure sentiment.
- The MON token sees volatility as investors reassess long-term fundamentals.
Monad (MON), a new Layer-1 blockchain that launched on November 24 with more than $500 million in backing, is struggling to gain traction, as on-chain data shows weak early activity.
Despite claims of 10,000 TPS, sub-second finality, and full EVM compatibility, the network’s TVL has stalled near $185 million, far below expectations for a project billed as a major rival to Solana, Aptos, Sui, and Ethereum L2s.
A widely shared post from Crypto With Khan, a popular crypto influencer, questioned whether Monad’s strategy prioritized influencer incentives over grassroots participation.
Khan pointed out that KURU, Monad’s main DEX, holds only $1.73 million in TVL, while major LST platforms remain below $20M. He also compared Monad’s $185 million in total TVL to projects on Solana and even Solana’s own lows during the FTX crash, levels still higher than Monad’s today.
The critique has sparked debate over whether airdrop-driven ecosystem growth is fading and whether Monad failed to mobilize its early community. Khan said it’s still early to judge, but “the numbers are not impressive.”
Post-launch behavior
Monad’s mainnet debuted with more than 100 apps, 18,000 deployed smart contracts, and over three million transactions within hours. MON began trading around $0.046 and briefly surged more than 50% on over $1.2 billion in volume. Still, almost 90% of the token’s supply remains locked, creating long-term sell-pressure concerns once unlocks begin.
The airdrop, initially intended to reward early adopters, became a flashpoint. Rapid sell-offs, failed transactions, and claims of uneven distribution sparked frustration across the community. Several large wallets immediately offloaded millions of MON, increasing volatility and souring sentiment in the project’s early days.
MON token outlook
The MON token currently trades near $0.029, up 13% on the week, with a market cap of $314 million and 24-hour volume above $218 million, according to CoinMarketCap.
Despite weekly gains, investors remain cautious due to Monad’s low float, $2.89 billion FDV, and uncertain on-chain demand. With roughly 9,000 holders, long-term momentum hinges on whether developers and users meaningfully adopt the network.
Monad’s early weeks show a project caught between heavy expectations and slower-than-expected ecosystem traction. As the chain moves into 2026, its ability to convert hype into real usage (and address community skepticism) will determine whether it becomes a lasting Layer-1 competitor or another short-lived VC-backed experiment.
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