Monad (MON) halted its rise after a strong debut and is now consolidating, with trading activity increasingly concentrated among large holders. Supply withdrawals from exchanges and whales’ leveraged positions are compressing liquidity, shaping near‑term price dynamics. More than half of MON’s total supply remains locked until Q4 2029, anchoring the token’s circulating supply profile.
After the airdrop and market debut, MON recorded a 70% rise and traded between $0.02 and $0.035 at peak volatility, highlighting a rapid initial repricing followed by a narrower range. On‑chain indicators now point to declining retail selling pressure, while large actors move in the opposite direction: about $919,000 in MON was absorbed by large wallets, and a single withdrawal moved 73.36 million MON (roughly $3 million) from a centralized exchange into private custody.
Negative net spot flow indicates that more tokens are leaving exchanges than entering, reducing immediately available supply; spot netflow is the balance between deposits and withdrawals on centralized platforms. At the same time, leveraged futures positions are generating synthetic buy pressure, including a 3x position on 171.6 million MON (valued at $5.6 million) that was showing a floating gain close to $2 million at the time of analysis. This mix of withdrawals and leverage can support prices in the short term, but it increases the risk of amplified moves if sentiment shifts.
Tokenomics and fundamentals of Monad (MON)
Monad launched with a total supply of 100 billion MON, with 50.6% under significant lock‑ups and full release expected in Q4 2029. This economic design reduces visible circulating supply in the short to medium term and represents a key variable in the formation of price floors.
The network positions itself as a high‑performance layer 1 with EVM compatibility, targeting 10,000 TPS and 0.8 s block finalization. Within this design, the MON token functions as gas, security collateral, and governance vote, integrating utility across the protocol’s core operations.
Staking offers annualized yields in the 8–12% range, and liquid staking options—such as via Magma—enable MEV‑optimized rewards while maintaining some liquidity.
The pause in MON’s price reflects a recalibration phase where whales withdraw supply and deploy leverage that can sustain a recovery, albeit with heightened sensitivity to flow changes. For investors and compliance teams, the key variables to monitor are net exchange outflows, leverage levels, and the unlock schedule, with the total unlock expected in Q4 2029 standing out as the most relevant verifiable milestone.
