Monad (MON), a new Layer-1 blockchain that debuted on November 24 with over $500 million in venture capital backing, is currently facing significant challenges in gaining user traction. On-chain metrics reveal that the project”s total value locked (TVL) has stagnated at approximately $185 million, falling short of expectations for a platform projected as a formidable competitor to notable networks like Solana, Aptos, Sui, and Ethereum Layer 2 solutions.
Despite boasting claims of achieving 10,000 transactions per second (TPS), sub-second finality, and full Ethereum Virtual Machine (EVM) compatibility, the initial enthusiasm surrounding Monad is quickly dissipating. A recent critique from popular crypto influencer Crypto With Khan highlighted that Monad”s primary decentralized exchange, KURU, has only managed to accrue a mere $1.73 million in TVL. Furthermore, leading liquid staking token (LST) platforms within the ecosystem are also struggling, with their metrics still falling below $20 million.
Khan”s observations draw a stark comparison, noting that Monad”s $185 million in total TVL is lower than Solana”s figures during its own lows amid the FTX crisis. The commentary has ignited a debate on whether Monad”s growth strategy, which appears heavily influenced by airdrop incentives, has failed to effectively engage the wider community of users. While Khan concludes that it is premature to make definitive judgments, he asserts that “the numbers are not impressive.”
Following its mainnet launch, Monad saw over 100 applications, 18,000 smart contracts deployed, and more than three million transactions within the first few hours. The MON token began trading at approximately $0.046 and briefly surged over 50%, with trading volume exceeding $1.2 billion. However, a significant concern looms as nearly 90% of the token supply remains locked, raising fears of potential selling pressure once these tokens are unlocked.
The airdrop intended for early adopters has become a contentious topic. Issues such as rapid sell-offs, failed transactions, and allegations of uneven distribution have led to widespread frustration among users. The aftermath saw several large wallets quickly offloading millions of MON, which contributed to increased volatility and a negative sentiment surrounding the project in its formative days.
Currently, the MON token trades around $0.029, reflecting a 13% increase over the week, with a market capitalization of $314 million and a 24-hour trading volume surpassing $218 million, as reported by CoinMarketCap. Despite this recent uptick, investor caution remains prevalent due to Monad”s low liquidity, a fully diluted valuation of $2.89 billion, and the ongoing uncertainty regarding on-chain demand.
With approximately 9,000 holders, the long-term success of Monad hinges on its ability to transition from initial hype to meaningful user adoption. As the ecosystem progresses into 2026, its capacity to convert initial excitement into real usage and address the skepticism within its community will be crucial in determining whether it solidifies its status as a lasting Layer-1 contender or fades as another transient venture backed by venture capital.
