Monad (MON), the governance token of a layer 1 (L1) network supported by the Ethereum Virtual Machine (EVM), is showing resilience amid a widespread bear market.
The token made its market debut on November 24 with a quote of $0.02417. As the hours passed, the price went up and currently MON is trading at $0.0474, up 85% since its launchas seen in the following graph:
Monad is a network that promises to solve the scalability problems present in platforms like Ethereum. According to its team, it is designed with a parallel execution approach, faster completion times, and a proprietary database that optimizes processing.
In addition, it allows the use of Solidity and EVM tools, which makes it easier for existing projects to migrate without friction, as explained in the Criptopedia, educational section of CriptoNoticias.
Its native token, MON, fulfills essential functions within the ecosystem: participation in governance, It allows staking to strengthen the security of the protocol and serves as a means of payment for usage fees.
It is also part of the economic design of the project, with a part of the supply destined for development teams under progressive token unlocking schemes to ensure sustainable evolution.
A moderate start
Despite this good price performance, MON started with a very moderate trading volume: in the first 100 minutes it barely moved 50 million dollars. Is a low figure for the premiere of an L1 token and that reinforces the idea of weaker demand than expected.
Added to this is that the public sale on the Coinbase Token Platform also did not take off. 7.5% of the circulating supply was offered at $0.025, and it still took a long time to run out.
The community also questions its distribution: the team retains 27% of the supply, investors 19.7%, and only a minor portion is left for the treasury and ecosystem development.
Arthur Hayes, co-founder and former CEO of BitMEX, opined about the release of MON in an ironic tone. “Just what this bull market needed: another useless layer 1 chain, with low circulating supply and a totally inflated valuation. But obviously I bought it anyway. It’s a bull market, damn it! MON at $10,” he said.
In his message, Arthur Hayes uses irony to mock the release of MON. The businessman points out that very little amount of tokens circulate at the beginning, something that usually generates rapid and volatile increasesand criticizes that the project was born with an exaggeratedly high total valuation.
He also describes it as a new network with no real purpose. However, Hayes says he still bought without much thought and He justifies this by saying that, in a bull market, almost any asset ends up going up. It is worth clarifying that his “prediction” of MON at $10 also seems to be ironic. At that price, the token would be more valuable than solana (SOL) which seems very unlikely to happen.