Monad is a kind of crypto initiatives everybody has heard about by now. It’s a Layer 2 (L2), an Ethereum Digital Machine (EVM) chain and one other so-called Ethereum (ETH) killer. The mission expanded rapidly all through 2025, and a few consider Monad has actual potential, whereas others anticipate it to comply with the standard L2 sample of early hype, speedy progress, and a sluggish decline.

Matas Čepulis, Founder and CEO of LuvKaizen, advised Cryptonews that Monad reminds him of initiatives like Sei (SEI), Sui (SUI), and Avalanche (AVAX). Every of them raised critical cash at launch, however the outcomes weren’t spectacular in the long run:

$250 million raised or one thing, nevertheless it all ends in some unspecified time in the future with minimal TVL and no income. This occurred equally already to SEI, SUI, AVAX, all of them raised $100 million to $300 million, ended with F1 sponsorship and lifeless traction.

‘Why Would I Want One other Layer 2?’

Token efficiency doesn’t work of their favour both. In accordance with CoinPaprika, most L2 tokens are down round 90% from their all-time highs (ATH) and even decrease. Within the crypto neighborhood, this drop is often known as loss of life. A couple of initiatives stand out, equivalent to Mantle (MNT) and Zora (ZORA).

In comparison with others, they’re down 67% and 64% from ATH. It’s value noting that each are pretty new. Mantle is supported by Bybit, which retains including varied passive-income choices. Zora is extra speculative, however the mission created numerous hype at launch and nonetheless attracts consideration on occasion.

The larger downside is easy: there are too many L2s. When Ethereum and its ecosystem had been creating, L2s had been genuinely wanted. However the growth in DeFi and Web3 created an atmosphere the place chains appeared quicker than anybody might observe, and most of them weren’t providing something new. It’s related to what’s occurring with AI proper now.

Monad could run into the identical wall. Čepulis provides:

I don’t see a lot innovation there and the whole lot they are saying they’ve. Ethereum or Solana have already been solved. Why would I would like one other Layer 2?

Will the Monad Launch Change Something?

Monad ended up in an uncommon place. The mission grew to become extraordinarily widespread and extensively mentioned. Some customers see an enormous future for it, particularly round its NFTs and buying and selling playing cards, which generated loads of consideration though the NFT sector has struggled for years.

Monad additionally has backing from main gamers. Coinbase grew to become the unique platform for the Monad ICO, and U.S. customers are allowed to take part, which is uncommon due to regulatory limitations. This alone provides the mission extra liquidity and visibility than most new chains obtain at launch.

Proper now, the neighborhood appears extra within the Monad token than within the expertise behind it. This isn’t shocking. Throughout market corrections merchants search for new alternatives, and with Monad gaining consideration, it naturally matches sure speculative methods.

One real looking state of affairs is a fast sell-off shortly after the Monad crypto launch. There might be a short spike adopted by early buyers securing earnings. This behaviour has been widespread in 2025. The basic maintain technique stopped working in lots of circumstances, and merchants entered aggressively and exited rapidly, like what occurred with the current Uniswap (UNI) rally.

The problem is that retail merchants don’t see what occurs behind the scenes. They often discover progress after it has already taken place.

The Large Nuance

Regardless of the profitable Monad ICO, there are considerations across the MON token. One in all them is that a big portion of the provision goes to the staff and buyers. Čepulis feedback:

I see some flaws and ache factors within the tokenomics the place it’s allotted greater than 50% of the provision for the staff, insiders, and so on.

This allocation might also imply that buyers, particularly these within the insider class, seize many of the upside. Čepulis additionally famous that many individuals who had been farming Monad for months could find yourself receiving little or no:

Yappers and KOLs possibly bought their half, however I really feel actually sorry for small accounts who had been pushing each day and bought actually nothing out of it.

On X, there are many accounts actively selling Monad, which raises questions on how the provision will flow into as soon as buying and selling begins. It’s nonetheless unclear what is going to occur to customers who obtain tokens via the ICO slightly than farming.

Monad enters the market with robust visibility, Coinbase backing, and a neighborhood that’s presently extra targeted on the MON token than on the underlying expertise. However with greater than half of the provision allotted to the staff and buyers, the token could face heavy promoting shortly after the Monad crypto launch. Merchants within the present market typically prioritise fast profit-taking over long-term utility, which will increase this threat.

The end result could resemble the Pump.Enjoyable sample, with an preliminary drop adopted by restoration if the mission continues to construct, or the extra typical L2 path of early hype and gradual cooldown if Monad doesn’t supply significant innovation past Ethereum or Solana.

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