Token Monad is experiencing a strong plummet amidst profit-taking and false transactions.

Source: PortaldoBitcoin Original Title: Token Monad is experiencing a sharp decline amid profit-taking and fake transactions Original Link: The native token of the newly launched layer one blockchain, Monad, experienced further losses on Thursday, amid the volatility that has accompanied it since its debut about three days ago.

The cryptocurrency dropped 15% yesterday, to $0.03, and this Friday (28) continues to lose another 8%, to $0.03690. Nevertheless, the asset has accumulated a 28% increase since its debut on November 25, mainly due to the strong appreciation from an opening price of around $0.02.

Some indications point to profits being realized by the early holders of the token, with the buy-sell delta indicator (bid-ask delta) at 10% of the order book depth turning negative after the stabilization of Monad around $0.47 on November 26.

In other words, the order book shows that sellers are currently outnumbering buyers in this specific price range due to imbalance. Derivatives traders have also amplified the drop driven by the spot price.

The constant open interest, combined with a sharp decline in the accumulated volume delta, suggests that new short positions are being opened, increasing downward pressure.

“Expectations remain constructive in the long term: investors are looking for real workloads, genuine traction from developers and ecosystem partners to validate Monad's high-performance thesis,” said Shivam Thakral, CEO of the Indian cryptocurrency exchange BuyUCoin. “But, after the recent decline, the market will demand evidence, not just benchmarks, before re-evaluating the asset.”

The settlement occurs after a spoofing incident on the network that arose a few days after the launch of the mainnet.

Malicious actors have started to spoof token transfers on Monad, a tactic designed to create confusion and erode trust.

The CTO and co-founder of Monad, James Hunsaker, confirmed the issue on Tuesday, warning users about transactions that appeared to falsely come from their wallets.

The sharp price correction contrasts strongly with the network usage metrics, which attracted nearly 150,000 active users and recorded 4.7 million on-chain transactions.

Meanwhile, stablecoin transfers to the Layer 1 blockchain surged to $711 million following successful collaborations with Solana and deBridge to boost asset flow between blockchains.

The divergence between strong on-chain growth and weak price movement is a fairly common theme in the current market, with risk aversion sentiment continuing to pressure the crypto sector as a whole.