Monad was once expected to become a new generation Layer 1 capable of creating a market effect similar to Sui, thanks to its high performance EVM architecture and the large amount of capital invested into the project. However, after the Public Sale and TGE phase, the level of discussion around the project in the market has somewhat cooled down.
Although this is a fairly familiar development for many new blockchain projects. In the early stage, market attention is usually driven strongly by technological narratives, large funding rounds, and expectations of an ecosystem that could compete with previously successful networks.
This raises an important question for many investors: is the Monad ecosystem gradually losing momentum, or is it simply entering an accumulation phase before the next stage of growth?
Key Takeaways
- Monad’s on-chain activity has declined significantly after the TGE, reflected by a sharp drop in transactions, active wallets, and DEX trading volume, suggesting that community attention has cooled.
- Despite this, the ecosystem’s TVL remains relatively stable, indicating that capital has not left the system and long-term market confidence has not completely disappeared.
- The dApp ecosystem is gradually taking shape with projects such as Neverland (lending), PerplTrade (perpetual DEX), Trendle (AttentionFi), and Nad.fun (memecoin launchpad).
- Monad continues expanding its ecosystem through hackathons, developer support programs, data infrastructure upgrades, and BTC liquidity integration to attract builders and new users.
Overview of Onchain Metrics on Monad
First, we can examine the daily transaction count on Monad. The number reached its peak on November 25, 2025 with more than 4.7 million transactions, which also coincided with Monad’s TGE. This demonstrates the extremely strong attention the project received from the community at that time.
However, Monad was not able to maintain that level of attention afterward, and the number of daily transactions declined sharply. Currently, the network fluctuates around approximately 1.5 million transactions per day.
When looking at the number of daily active wallets on Monad, the data is even more concerning. At the time of TGE, daily active addresses peaked at more than 150,000 wallets. At present, that number has dropped to around 12,000 active wallets per day. This represents a very significant decline, and Monad will likely need to introduce new strategies or incentive programs to attract users into the ecosystem if it wants to avoid gradually losing activity like many other blockchain networks.
The situation is not much better when examining the number of tokens created and traded daily on the Monad ecosystem. Currently, the number of newly created tokens per day fluctuates around slightly more than 100 tokens, far below the peak of more than 10,000 tokens created on November 25, 2025 when the memecoin wave briefly surged on Monad.
The number of daily token transactions on Monad also shows a similar trend, with around 800,000 transactions compared to the peak of more than 4 million transactions.
Looking at the overall on-chain metrics of the entire Monad ecosystem, TVL appears to be the most positive indicator at the moment. TVL has maintained relatively strong growth since the TGE, reaching a peak of 280 million USD on January 7, 2026 before slightly declining to around 272 million USD.
This suggests that capital flowing into the Monad ecosystem has largely remained intact and has not been withdrawn in significant amounts. Meanwhile, daily DEX trading volume currently fluctuates around 36.6 million USD, which is significantly lower than the peak of 300 million USD during the early days after the TGE. Daily protocol revenue has not even reached 3,000 USD.
Overall, Monad appears to be gradually losing community attention, which is clearly reflected in the sharp decline in transaction counts and daily active wallet addresses across the ecosystem.
However, this is also understandable because it reflects the general condition of most projects after TGE, combined with the broader market downtrend which has made the environment more subdued. Still, there is a positive signal from the TVL metric which indicates that capital within the ecosystem is still being maintained. This could become the foundation for Monad to revive its ecosystem in the coming period.
Updates on dApps in the Monad Ecosystem
The Monad ecosystem now contains a growing number of components across different sectors including DeFi, GameFi, and AI. Monad is also implementing incentive programs allocated to various projects in order to attract more users into its ecosystem.
Below are several notable dApps within the Monad ecosystem.
Neverland – The Leading Lending Protocol on Monad
One of the first projects to mention is Neverland. Neverland is a native lending protocol built on the Monad blockchain, designed to provide lending and borrowing infrastructure for crypto assets within the Monad DeFi ecosystem.
The protocol is designed to take advantage of Monad’s high performance and fast transaction processing speed, allowing it to deliver a lending and borrowing experience that is fast, low cost, and suitable for large scale DeFi applications.
In terms of operational mechanics, Neverland allows users to deposit assets into liquidity pools to earn interest or use those assets as collateral to borrow other assets within the ecosystem. This model is similar to familiar lending protocols such as Aave or Compound, where interest rates are dynamically adjusted based on supply and demand for each asset within the pool.
Currently, the project accounts for nearly half of the total TVL in the Monad ecosystem, with approximately 116.61 million USD in TVL while cumulative revenue has reached about 1.22 million USD. These figures suggest that Neverland is gradually attracting liquidity and becoming one of the most important DeFi protocols within the Monad ecosystem.
PerplTrade – A Native CLOB Perpetual DEX on Monad
PerplTrade is a perpetual DEX built entirely on-chain on the Monad blockchain. The distinctive feature of PerplTrade lies in its use of the Central Limit Order Book (CLOB) model, where the entire process of order placement, matching, settlement, and liquidation occurs directly on the blockchain rather than relying on off-chain processing systems.
Unlike many DEX platforms that use traditional AMM mechanisms, PerplTrade operates using an order book model similar to centralized exchanges. All actions such as placing orders, canceling orders, matching trades, and settlement are processed directly on-chain.
This design helps ensure transparency, reduce risks associated with centralized components, and preserve the decentralized nature of DeFi. At the same time, operating fully on-chain gives PerplTrade strong composability, allowing other protocols within the Monad ecosystem to integrate directly into Perpl’s trading infrastructure.
From an ecosystem development perspective, PerplTrade has also received significant interest from investors. The project has raised around 9.25 million USD from several crypto investment funds, demonstrating market expectations for on-chain CLOB models on high performance blockchains like Monad.
However, similar to many order book based perpetual DEX platforms in their early stages, PerplTrade still needs more time to improve liquidity and user experience. Its long-term competitiveness will depend on attracting market makers, expanding liquidity, and optimizing the trading experience to compete with major perpetual DEX platforms currently in the market.
Trendle – An AttentionFi Platform Turning Attention Into a Tradable Asset
Trendle is a prediction market platform focused on transforming online attention into a new type of financial asset, commonly referred to as AttentionFi.
Instead of predicting the outcome of events such as win or loss, users can trade based on levels of hype, sentiment, and engagement surrounding topics that attract community interest such as crypto narratives, sports teams, influential figures, or major global events.
The platform collects real time data from social networks such as X, Reddit, and YouTube to construct an Attention Index, which reflects the level of community attention and can be traded similarly to a financial asset.
Users can open Long positions when attention increases significantly or Short positions when trends begin cooling down. This effectively turns memes, internet trends, and social narratives into transparent trading markets.
Trendle is currently running a beta version on Monad and integrates Azuro Protocol to provide prediction market infrastructure and pooled liquidity.
Additionally, the project has launched an incentive program with a total reward pool of up to 1 million MONAD tokens, distributed weekly to top performing traders in order to attract users and expand liquidity on the platform.
Nad.fun – A Fair Launch Memecoin Launchpad on Monad
Nad.fun is a native launchpad on Monad designed to simplify the process of creating and discovering memecoins.
Users can create tokens easily with a fee of around 10 MON, after which the token becomes immediately tradable on-chain.
All tokens launched on Nad.fun follow a Fair Launch model, meaning there is no presale and no allocation for the development team.
The platform uses a bonding curve mechanism to distribute tokens. When approximately 80 percent of the token supply is sold during the bonding curve phase, the remaining 20 percent along with the MON collected will automatically be transferred to a DEX to create liquidity before broader market trading begins.
Nad.fun charges a fixed 1 percent trading fee on every buy and sell order, along with a graduation fee when the token is listed on a DEX. At the same time, a portion of LP fees is shared with participating community members.
Recent Key Developments in the Monad Ecosystem
Hackathon Programs
For an ecosystem that is still in an early stage like Monad, organizing hackathons to attract developers and new projects is extremely important. Recently, Monad has launched several initiatives aimed at encouraging building activity within the ecosystem.
One notable event is the Moltiverse Hackathon which took place from February 2 to February 18, 2026 with a total prize pool of 200,000 USD sponsored by Monad Foundation and Agora.
The program focused on encouraging the development of AI Agent projects on Monad through the Nad.fun platform.
In addition, Monad Blitz is a series of one day mini hackathons held in multiple countries following the TGE. These events allow developers to quickly experiment with ideas, build prototypes, and connect with other builders in the ecosystem.
Monad Foundation Acquires the Ponder Team to Upgrade Data Infrastructure
On February 17, 2026, Monad Foundation announced the acquisition of the team behind Ponder, an open source framework designed for blockchain data indexing.
Over the past years, Ponder has become an important data infrastructure tool for many applications within the EVM ecosystem.
As high performance blockchains like Monad emerge, traditional EVM data infrastructure has begun to show limitations. Data retrieval and processing can become bottlenecks that prevent dApps from building smooth user experiences.
After joining Monad Foundation, the Ponder team will focus on developing data infrastructure, developer tools, and open protocol standards to help applications fully utilize the performance of the Monad network.
Chainlink Enables Bridging of cbBTC to Monad
On March 2, 2026, Chainlink announced support for bridging cbBTC, a wrapped Bitcoin issued by Coinbase, from the Base network to Monad through CCIP infrastructure.
This allows users to bring Bitcoin liquidity into the Monad DeFi ecosystem and use it for various financial activities such as lending, borrowing, liquidity provision, or building BTC based derivative products.
Attracting Bitcoin liquidity is considered an important step for expanding Monad’s DeFi ecosystem and building a foundation for on-chain financial products.
Builder Support and AI Ecosystem Initiatives
Monad is also accelerating builder support programs in order to attract more projects building on the network.
One of the notable initiatives is the Monad AI Blueprint program, which is designed to support projects that combine blockchain technology with artificial intelligence.
Through this program, development teams can receive multiple forms of support from Monad including technical infrastructure, development tools, and direct mentorship from the project team.
In addition, promising projects may also gain opportunities to connect with investment funds and ecosystem partners.
Payment Infrastructure and Stablecoins
Another notable move by Monad is the expansion of payment and stablecoin infrastructure within the ecosystem.
Previously, Monad Foundation acquired Portal, a provider of on-chain payment and stablecoin infrastructure.
The goal of this acquisition is to build payment infrastructure directly on Monad, allowing DeFi and fintech applications to integrate stablecoins more easily.
Stablecoins play a critical role within DeFi ecosystems because they are widely used for trading, lending, payments, and asset management.
If stablecoin infrastructure and fiat liquidity continue expanding, Monad may attract more non crypto native users while also enabling stronger development of on-chain financial applications in the future.
Conclusion
Overall, after the TGE phase the Monad ecosystem is facing a noticeable decline in user activity, reflected by the sharp drop in transactions, active wallets, and DEX trading volume.
However, capital within the ecosystem remains relatively stable as shown by the TVL metric, suggesting that market confidence in Monad’s long term potential has not completely disappeared.
From an ecosystem perspective, however, Monad has not yet produced applications that are sufficiently differentiated to attract large numbers of users to migrate to its network.
Some projects within the ecosystem such as iPriori have previously faced FUD, which has affected Monad’s credibility. The experience of Aptos also serves as a reminder, where many dApps on Aptos failed to produce truly high quality products.
If Monad wants to regain community attention, it may need to invest more aggressively in incentive programs, developer support, and the development of standout applications that can motivate users to participate more deeply in the ecosystem.
Disclaimer: This content does not constitute investment, tax, legal, financial, or accounting advice. MEXC provides this information for educational purposes only. Always do your own research, understand the risks, and invest responsibly.