Monad (MON) Tests Key Support Level Amid Network Upgrades and DeFi Growth

Monad (MON) is testing a long-term support level around $0.01722 after weeks of decline, with analysts noting increased buying pressure and potential for a rebound according to MEXC reports. Network upgrades such as the MONAD-NINE proposal aim to improve efficiency and scalability, while DeFi liquidity has surged with projects like Kintsu's SuperMON product adding $100 million in TVL. Category Labs has announced token buybacks in 2026 to stabilize the supply and address volatility concerns linked to the high FDV and low float model as reported by AInvest.

Monad, a high-performance, Ethereum-compatible Layer-1 blockchain, has drawn attention for its full EVM compatibility and innovative consensus mechanisms like MonadBFT and RaptorCast according to CoinCodex. The platform processes up to 10,000 transactions per second with 400ms block times, making it appealing for high-frequency trading and mass-market applications as detailed by CoinCodex.

The project's institutional visibility and technological advancements have positioned it as a compelling investment, especially with its mainnet launch in November 2025 and a token sale that exceeded $187 million. Analysts suggest the potential for significant price appreciation as network activity and adoption continue to grow according to MEXC.

Why Is Monad Attracting Investor Attention?

Monad has attracted attention due to its technical performance and strategic partnerships. Full EVM compatibility enables developers to deploy Ethereum-based applications with ease, reducing migration barriers for projects seeking higher throughput and lower fees as noted by CoinCodex.

The recent network upgrade, MONAD-NINE, is expected to improve scalability and reduce latency, making the platform more competitive in the Layer-1 space according to MEXC. This upgrade, combined with DeFi growth driven by protocols like Kintsu and Folks Finance, has led to increased TVL and liquidity inflows as reported by MEXC.

The token's high FDV and low float structure, however, pose volatility risks, particularly for retail investors as highlighted by AInvest. Category Labs' token buybacks aim to stabilize the supply and build market confidence in the long term according to AInvest.

What Are the Key Risks and Opportunities?

The high FDV and low float model expose Monad to significant price swings, particularly during market corrections as noted by AInvest. Retail investors may face sharp price declines if buying pressure weakens, as seen in other high-FDV assets according to AInvest.

Despite these risks, opportunities remain substantial. Strategic partnerships with entities like Chainlink and Gearbox are expected to enhance DeFi security and smart contract capabilities as reported by AInvest. These integrations will likely attract more developers and users to the platform according to AInvest.

Folks Finance's expansion on Monad has introduced cross-chain lending and borrowing, including support for assets like MONUSDT, AUSDs, wBTC, and wETH as detailed by Messari. These developments are expected to further drive adoption and TVL on the platform according to Messari.

In summary, Monad's technological advancements, strategic partnerships, and DeFi growth are key drivers of investor interest. However, the token's volatility and high FDV present notable risks that should be closely monitored.