Key notes
- Arthur Hayes added that once insiders start unlocking tokens, the price of Monad could see a sharp decline.
- Market sentiment around MON remains weak despite its recent rally, with analysts advising holders an exit plan.
- Hayes maintains a bullish outlook on the broader crypto market, saying the upcoming global liquidity expansion will drive a bullish rally.
Monad’s 30% price rise over the past week has caught the attention of investors. However, veteran crypto investor Arthur Hayes has warned that the recently launched layer 1 blockchain could turn into a failed experiment once the hype dies down. Following the rejection at $0.048, the altcoin currently finds support at $0.035.
Arthur Hayes warns Monad could 99% crash
Crypto veteran Arthur Hayes has sounded the alarm on Monad, warning that the recently launched layer 1 blockchain could lose up to 99% of its value. Speaking in an interview with Altcoin Daily, the former BitMEX CEO argued that the project looks like “another high FDV, low float VC coin.” Thus, he warned that its token structure presents significant risks for retail investors.
He added that networks that have a significant gap between fully diluted valuation (FDV) and circulating supply typically experience short-lived price hikes. Once insiders start unlocking the tokens, it could lead to a sharp decline, he added. “It’s going to be another down chain,” he said, adding that early pumps do not guarantee true adoption or long-term relevance.
Arthur Hayes added that only a few layer 1 chains are likely to survive future market cycles. He listed Bitcoin, Ethereum, Solana and Zcash as protocols he expects to adopt.
Monad, which raised $225 million last year in a funding round led by Paradigm, officially launched its mainnet on November 24. At the same time, the platform also released the MON token via an accompanying airdrop.
Aside from Hayes, the general market sentiment around the MON token does not seem very optimistic. Popular crypto analyst Altcoin Sherpa also shares a similar view. He suggested that MON holders should have an exit plan in place. Comparing MON to other projects like XPL and WLFI, the analyst added that the price can drop much more from now on. Growing negative sentiment could halt Monad’s recent price rally.
To everyone under water $MY Incumbents: I suggest you develop some sort of exit plan in case things don’t go as planned. After seeing what happened to launches like $XPL And $WLFIThe price may be much lower than you think. pic.twitter.com/K9sui33dwC
– Altcoin Sherpa (@AltcoinSherpa) November 28, 2025
Hayes remains bullish on the crypto market
Apart from this, Arthur Hayes presented an overall bullish outlook for the crypto market, saying that the next phase of the cycle will be driven by further monetary expansion. According to Hayes, the US government is preparing for a new round of liquidity injections amid slowing economic growth and political pressures.
“I think we are at the end of the beginning of this cycle, and massive amounts of crazy money printing in a bull market are ahead of us,” he said.
Hayes further objected to the idea that Bitcoin’s market cycles are dictated by its four-year halving schedule. He argued that previous bull markets were not triggered by halving events, but by a synchronized expansion of global credit, particularly from the United States and China.
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Bhushan is passionate about FinTech and has a good nose for understanding financial markets. His interest in economics and finance draws his attention to the new emerging markets of Blockchain technology and cryptocurrencies. He is continually learning and remains motivated by sharing his acquired knowledge. In his free time, he reads thriller novels and sometimes explores his culinary skills.
