Quick Summary of Monad’s Mainnet Launch
- Monad launched its mainnet, introducing the MON token to the market and various blockchain networks.
- MON experienced a price surge of over 62% on its initial trading day, marking a strong debut.
- Trading activity for MON was notably concentrated on specific exchanges, including Coinbase, Bybit, and Upbit.
- Monad’s ecosystem is expanding, with over 100 applications integrated shortly after the mainnet launch.
- Liquidity pools for MON have grown to $115 million, with Uniswap leading the way in network activity.
- While MON shows promise, some traders are taking short positions, indicating potential price volatility ahead.
The Monad ecosystem is now live as the native MON token entered price discovery. On its first day, MON launched as a multichain asset, expanding its reach across different blockchain environments.
MON traded around $0.04, marking a 62% increase on its first trading day. The token saw $1.2 billion in trading volume within the first few hours, with a circulating supply of 10.8 billion MON. It’s worth noting that nearly 90% of the token supply is reserved for future unlocks, bringing the total supply to 100 billion tokens.
Early MON trading was concentrated on a unique set of exchanges, including Coinbase, Bybit, and Upbit. This mix of DEX and centralized exchanges offered different avenues for traders to acquire and trade the new asset.
📍Insight: A multichain launch strategy can broaden a token’s accessibility and liquidity but may also increase complexity in managing its presence across different networks.
Analyzing Monad’s Liquidity Building
MON’s most active markets show a unique trading profile, with over 62% of volumes against the Korean Won, and the rest in fiat pairs with the US dollar.
The Monad airdrop aimed to engage older DeFi and NFT communities, providing a new trading venue and potentially revitalizing the Web3 space.
Monad is an EVM-compatible L1 chain, joining a competitive landscape. The launch occurred amidst discussions about the sustainability of new networks, highlighting the challenges of maintaining long-term interest and activity.
MON’s Rise as a Solana Asset
For now, Monad is demonstrating early signs of activity. The mainnet has attracted over 100 applications within hours of its launch.
Monad also launched with $115 million in liquidity, with Uniswap as its leading network. The chain experienced inflows of over $123 million in stablecoins, solidifying the liquidity and utility of the network.
✅Tip: Keep a close eye on Total Value Locked (TVL) and active user metrics in the coming weeks. Declining participation is a key warning sign to watch for.
MON launched on Solana, offering decentralized trading options alongside centralized exchange listings. Currently, the MON/USDC pair has limited liquidity, and even the top whales have only cashed out less than $80,000.
Solana emerged as a leading platform for decentralized MON trading in the initial days after the token’s launch. However, some users faced challenges, with one trader reportedly spending most of their airdrop funds on transaction fees.
The Solana version of MON achieved approximately 60% of the trading volumes compared to the native MON pair on Uniswap. At this stage, most MON airdrop recipients are holding unrealized gains, which could lead to future selling pressure.
Whale Activity and Market Sentiment
However, MON is perceived as a risky asset, with many anticipating a price drop. Data from Hyperliquid indicates that only two out of eleven whales are holding long positions on MON, while the rest are taking up short positions.
⚡Insight: Tracking whale activity can provide clues about market direction, but it’s important to combine this information with other indicators. A concentration of short positions can amplify price volatility.
One high-profile whale with a long position is currently sitting on significant unrealized gains of $2.32 million. However, negative funding rates for MON long positions on Hyperliquid suggest a prevailing bearish sentiment. The potential for a post-airdrop crash is still a significant consideration at this early stage.
Frequently Asked Questions about Monad and MON Token
What is Monad, and what problem does it aim to solve?
Monad is a new EVM-compatible Layer-1 blockchain designed to offer high performance and scalability. It aims to address the limitations of existing blockchains by providing faster transaction speeds and increased efficiency for decentralized applications.
What is the MON token, and what is its utility within the Monad ecosystem?
MON is the native token of the Monad blockchain. It is used for transaction fees, staking, and governance within the Monad ecosystem. It incentivizes participation and secures the network.
Where can I trade MON tokens?
MON tokens are currently traded on a mix of centralized and decentralized exchanges, including Coinbase, Bybit, Upbit, and Uniswap. Availability may vary depending on your region.
What are the risks associated with trading MON tokens?
MON is a relatively new token, and its price is subject to volatility. Factors such as market sentiment, trading activity, and overall adoption of the Monad blockchain can impact its value. Additionally, airdrop recipients cashing out their tokens can create selling pressure.
Final Thoughts on Monad’s Launch
Monad’s mainnet launch and the introduction of the MON token represent an important step in the development of blockchain technology. The initial market response has been positive, but the long-term success of the network will depend on its ability to attract and retain users, developers, and liquidity.
As with any new cryptocurrency project, it’s crucial to approach MON with caution and conduct thorough research. Monitor trading activity, assess the network’s performance, and stay informed about developments within the Monad ecosystem to make informed decisions.
