Monad Could Crash 99% Says Arthur Hayes, Despite Recent Rally

The Monad blockchain recently experienced a 30% price rally, attracting investor interest. However, Arthur Hayes, a veteran crypto investor, warns that this Layer-1 blockchain might lose up to 99% of its value once the initial excitement fades. He compares it to other high fully diluted valuation (FDV), low-circulating supply coins, which often see brief price spikes followed by declines when insiders unlock tokens.

Monad raised $225 million in a Paradigm-led round and launched its mainnet on November 24 with an accompanying MON token airdrop.
Arthur Hayes anticipates survival for only a few Layer-1 chains like Bitcoin, Ethereum, Solana, and Zcash in future market cycles.
Market sentiment around the MON token remains pessimistic. Analyst Altcoin Sherpa advises holders to have an exit strategy, comparing MON to projects like XPL and WLFI, which saw further price drops.

Arthur Hayes on the Crypto Market

Despite concerns about Monad, Hayes maintains a positive outlook on the broader crypto market. He predicts a new cycle driven by monetary expansion due to anticipated US government liquidity injections amid economic challenges.

Hayes believes global credit expansion, rather than Bitcoin’s halving schedule, triggers bull markets.