In short
- The token fell 15% to $0.03, reversing gains made after its launch earlier this week.
- The order book imbalance and declining cumulative volume delta indicate that early sellers and new shorts are driving the downturn.
- The drop followed a network spoofing incident, even as the chain recorded 150,000 users, 4.7 million transactions and rising stablecoin flows.
The newly launched Layer-1 blockchain’s native token, Monad, suffered further losses on Thursday amid the volatility that has plagued the token since its debut about three days ago.
The crypto is down 15% to $0.03 in the past 24 hours, after falling from $0.04 late in the US trading session. It continues to rise 47% since its debut on November 25, mainly thanks to the solid increase from an opening price of around $0.02, according to CoinGecko data.
Some signs point to early token holders making gains with a 10% bid-ask delta indicator in the order book turning negative after Monad stabilized around $0.47 on November 26.
In other words, the order book imbalance shows that sellers currently outweigh buyers in that specific price zone. Derivatives traders have also amplified the spot-driven decline.
Steady open interest, coupled with a sharp decline in the cumulative volume delta, indicates that new short positions are being opened, adding to the downward pressure on the decline.
“Expectations are still constructive in the long term: investors are looking for real workload, real traction from developers and ecosystem partners to validate Monad’s high-throughput thesis,” Shivam Thakral, CEO of Indian crypto exchange BuyUCoin, told me. Declutter. “But after the recent decline, the market will demand evidence, not just benchmarks, before reassessing assets.”
The sell-off follows a network spoofing incident that occurred just days after the mainnet launch.
Bad actors began faking false token transfers on Monad, a tactic intended to create confusion and erode trust. Declutter earlier reported.
Monad CTO and co-founder James Hunsaker confirmed the issue on Tuesday and warned users about transactions that appeared to be mistakenly coming from his wallet.
The sharp price correction is in stark contrast to the network’s usage statistics, which have attracted nearly 150,000 active users and recorded 4.7 million on-chain transactions, according to Artemis facts.
Stablecoin transfers to the Layer 1 blockchain, meanwhile, have skyrocketed to $711 million after successful collaborations with Solana and deBridge to promote cross-chain asset flows.
The difference between robust on-chain growth and weak price action is a near-common theme in today’s market, with risk-off sentiment continuing to exert pressure across the broader crypto sector.
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