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Markets continued to recoup losses from Monday’s sell-off, with the BTC, S&P 500, and Nasdaq indices rising 2.52%, 0.22%, and 0.05%, respectively, yesterday. Even safe haven gold gave up some gains and fell -0.12% on the day as risk appetite improved.
The rise came after a surprise decrease In private sector employment. Private sector employers lost 32,000 jobs in November, compared to job growth expectations. This was paid probability From next week’s interest rate cut to 85%, up from 80% a week ago. Microsoft put pressure on the Nasdaq index, and it fell by more than -2% after reports that the company had done so. reduced AI software sales shares due to lower than expected demand.
Across cryptocurrency sectors, most indices finished in the green with the exception of the gaming sector, which fell by -1.65%. Gaming has been one of the weakest performers this year and is down -77% year to date. Memes, the most inverted sector during market rallies, also declined with a modest gain of 1.24%. The index was affected by the decline in the PUMP and PENGU indices, which fell by -2.54% and -1.80%, respectively, during the day.
On the upside, the Artificial Intelligence sector led the market with gains of 7.46%. The TAO continues to push the index higher and rose 7.6% before halving next week. L1s followed with a 6.45% move, supported by ETH and BNB, which make up 63% of the index and were up 6.6% and 5.2%, respectively.
The flows tell a more cautious story. After five days of inflows, BTC ETF inflows turned negative again with modest outflows of $14.9 million. However, ETH ETFs saw a strong rebound with inflows of $140.2 million after two days of declines earlier in the week. However, the inflows are yet to show real conviction when compared to the -$4.4 billion in net outflows seen during November.
Market Update: Monad
Now that we’ve been around a week and a half since Monad TGE, it’s a good moment to take a step back and evaluate how the series has actually performed post-launch. After a strong initial rally, MON calmed down and fell -28% during the week, leaving it 16% above its initial coin offering (ICO) price. On the ecosystem side, DeFi TVL continues to rise and is now in place $277.5 million.
A large portion of TVL is concentrated in the Australian dollar. around $144 million There is $277.5 million inside the Agora stablecoin, which is farmed via various protocols to earn ecosystem incentives. Upshift has $73 million and deploys AUSD via DeFi protocols like Morpho, Uniswap, and Euler. Morpho currently offers 4.5% APY on AUD and 5.98% on USDC, with most of the return coming from MON incentives Instead of demand for organic borrowing. Incentives are an acceptable way to kick-start early liquidity, but the real test will be whether Monad is able to attract DeFi applications that generate a sustainable organic return once the incentive firehose wanes.
Looking at the native apps, Nad.fun has been the leader in both accounts and transactions since day one. It is the launchpad for Monad’s original memecoin, but its staying power is not guaranteed. only Two icons It was launched there exceeding the market value of $1 million. Even Chog, the series’ first community icon, is present under It is more than 65% off its highs and stands at $4.5 million today. Not exactly the early momentum you want for a vibrant meme ecosystem.
Other local projects are earn Traction. FastLane became Monad’s primary LST. Pinot Finance is emerging as a DEX alternative to Uniswap. Lumiterra, an MMORPG, has quietly put up strong usage numbers and Rank The third is with accounts, and the second is with yesterday’s transactions.
At the chain level, activity looks promising for the network at this early time. Monad has generated $100,000 in fees over the past seven days, putting it ahead of chains like Avalanche and Toon. Daily transactions and Active addresses They hovered around 2.2 million and 117,000 respectively. These are respectable metrics for a series just out of the gate.
But one data point stands out. WormholeScan shows that 75% of assets bridged to Monad have already flowed back to other chains. This is an early sign that users may be planting and rotating rather than staying put.
For the Monad, the next stage is about conversion. Can the chain turn early speculative flows into sticky liquidity and real economic activity? The charts above are ones I’ll be watching closely to see if this ecosystem can turn early hype into lasting traction.
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