In other words, the orderbook imbalance shows sellers are currently outweighing buyers in that specific price zone. Derivatives traders have also amplified the spot-driven decline.
Steady open interest, coupled with a steep decline in the cumulative volume delta, suggests that new short positions are being opened, adding downward pressure to the drop.
"Expectations are still constructive long term: investors are looking for real workloads, genuine developer traction, and ecosystem partners to validate Monad’s high-throughput thesis," Shivam Thakral, CEO of Indian crypto exchange BuyUCoin, told Decrypt. "But after the recent drop, the market will demand evidence, not just benchmarks, before re-rating the asset."
The sell-off follows a network spoofing incident that emerged just days after its mainnet launch.
Bad actors began spoofing fake token transfers on Monad, a tactic designed to create confusion and erode trust, Decrypt previously reported.
Monad CTO and co-founder James Hunsaker confirmed the issue on Tuesday, warning users about transactions that falsely appeared to come from his wallet.
The sharp price correction stands in stark contrast to the network's usage metrics, which have attracted nearly 150,000 active users and recorded 4.7 million on-chain transactions, according to Artemis data.
Stablecoin transfers to the Layer 1 blockchain, meanwhile, have skyrocketed to $711 million following successful collaborations with Solana and deBridge to advance cross-chain asset flows.
The divergence between robust on-chain growth and weak price action is an all but common theme in the current market, with risk-off sentiment continuing to apply pressure across the broader crypto sector.
decrypt.co
