Monad has lost roughly 75% of assets bridged into its network to outflows within roughly ten days of its token generation event, according to WormholeScan data cited in Blockworks' 0xResearch newsletter on Wednesday. The metric raises the question of whether the chain can convert early attention into durable liquidity.

MON, the network's native token, has retraced 28% from its post-TGE peak. The token still trades 16% above its initial coin offering price as of the newsletter's publication.

What did the broader market do?

Markets partly recovered Monday's selloff. Bitcoin gained 2.52%, the S&P 500 added 0.22%, and the Nasdaq closed up 0.05%, held back by Microsoft, which fell more than 2% after reports the company lowered AI software sales quotas on softer demand.

Gold gave back 0.12% as risk appetite returned. The catalyst was a surprise 32,000-job decline in U.S. private-sector employment for November, which lifted the implied odds of a Federal Reserve rate cut at next week's meeting to 85% from 80% a week earlier.

Crypto ETF flows told a divided story. Bitcoin ETFs recorded $14.9 million in net outflows after five straight days of inflows. Ethereum ETFs absorbed $140.2 million, snapping a two-day decline. Both pale against the $4.4 billion in net outflows recorded across November.

The AI sector led crypto subsectors with a 7.46% gain, driven by TAO, which climbed 7.6% ahead of next week's halving. L1s followed at 6.45%, lifted by ETH and BNB, which together comprise 63% of the index and added 6.6% and 5.2% respectively. Gaming lagged at -1.65% and is now down 77% year-to-date. The meme index added 1.24%, weighed down by PUMP and PENGU, which fell 2.54% and 1.80% respectively.

How concentrated is Monad's DeFi liquidity?

Monad's DeFi total value locked sits at $277.5 million, the newsletter reported, with one stablecoin dominating the figure:

• Agora's AUSD anchors $144 million, deployed across Morpho, Uniswap and Euler.
• Upshift holds $73 million and routes AUSD across the same venues.
• Morpho offers 4.5% APY on AUSD and 5.98% on USDC.

The newsletter characterized emissions as an acceptable way to jump-start early liquidity but singled out the post-incentive period as the decisive test for whether Monad can attract DeFi applications that generate sustainable, organic yield once rewards taper.

Which native apps are gaining traction?

Nad.fun, Monad's memecoin launchpad, leads the chain by accounts and transactions since day one. Only two tokens issued on the platform have crossed a $1 million market capitalization. Chog, billed as the chain's first community token, trades at $4.5 million, down more than 65% from its high.

Among infrastructure protocols, FastLane has captured the bulk of liquid-staking deposits. Pinot Finance is positioning as an alternative decentralized exchange to Uniswap. Lumiterra, an MMORPG, ranked third by accounts and second by transactions on the day cited.

Where does Monad stand versus rival L1s?

Monad generated $100,000 in fees over the trailing seven days, a figure the newsletter said placed the chain ahead of Avalanche and TON. Daily transactions hover near 2.2 million. Daily active addresses stand around 117,000 — figures the analyst called respectable for a chain just out of the gate.

What is the forward signal?

With three-quarters of bridged liquidity already repatriated, the next several weeks will test whether Monad retains economic activity as MON emissions taper. The newsletter identified ecosystem conversion — the migration of speculative capital into sticky, yield-generating applications — as the key variable to track through year-end.