Token Monad is experiencing a sharp decline amid profit-taking and false transactions.

Source: PortaldoBitcoin Original Title: Token Monad continues to fall sharply amid profit-taking and fake transactions Original Link: The native token of the recently launched first-layer blockchain, Monad, suffered new losses on Thursday, amid the volatility that has accompanied it since its debut, about three days ago.

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

Some signs point to profit-taking by the early holders of the token, with the buy-sell 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 due to imbalance are currently outpacing buyers in this specific price range. Derivatives traders have also amplified the decline 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 the downward pressure.

“Expectations are still 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 downturn, the market will demand evidence, not just benchmarks, before reassessing the asset.”

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

Malicious actors have begun 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.