Another heavily VC-backed L1 enters the market and once again, the numbers donโt match the narrative.
Monad launched roughly three weeks ago with a familiar promise: A high-performance Layer 1, built to solve Ethereumโs scalability limits while remaining fully EVM-compatible. In theory, developers can deploy existing Ethereum contracts without changing a single line of code.
On paper, it sounds like the classic โEthereum, but betterโ thesis. VCs bought that story hard.
Monad raised at least $225M, launching at a nearly $3B FDV, instantly priced like a unicorn.
But hereโs the problem. Itโs the same problem we see every cycle.
Usage.
KURU, Monadโs flagship DEX: $1.78M TVLTotal Monad TVL: ~$174MDaily fees: under $5,000
Thatโs not product-market fit. Thatโs speculative capital searching for a narrative.
In the real world, valuations follow users, revenue, and demand. In crypto, valuations often precede them sometimes indefinitely.
To MONโs credit, price has held up better than expected:
~-8% since launch~-45% from ATH
But price stability doesnโt change fundamentals. If on-chain activity doesnโt scale meaningfully, Monadโs current valuation is hard to justify. Long term, itโs likely worth a fraction of where itโs priced today.
The only real question isnโt if the market reprices it
itโs when.
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