BitMart Research, the research arm of BitMart Exchange, has released an in-depth report on Monad, a next-generation Layer 1 blockchain redefining Ethereum scalability through parallel execution. Backed by leading investors like Paradigm and Coinbase Ventures, Monad will debut its MON token on Coinbase’s newly launched public sale platform, with a $2.5 billion implied valuation and expectations of a volatile but closely watched market entry.
Unlike many high-speed chains that sacrifice decentralization or EVM compatibility, Monad introduces a novel architecture that achieves up to 10,000 TPS, sub-1 second finality, and gas fees under one cent—without compromising Ethereum compatibility. Its custom consensus mechanism (MonadBFT), parallel execution engine, and high-throughput network stack position it as a powerful foundation for high-frequency trading, gaming, and real-time AI applications. With strong ecosystem traction from early builders like Kuru Exchange, aPriori, and Kite AI, Monad is poised to challenge both modular rollups and monolithic Layer 1s as a performant, developer-friendly, and institutionally credible Web3 infrastructure.
1. Project Overview
Coinbase has recently launched its new public token sale feature, and the first project selected is Monad. Starting on November 17, 7.5 billion MON tokens—7.5% of the total supply—will be sold to the public at $0.025 per token, valuing the project at $2.5 billion. In Binance’s pre-market, MON trades around $0.051, implying a fully diluted valuation of about $5.1 billion.
Monad has earned such a high valuation mainly because of its technical innovation and strong investor backing. In blockchain development, performance and compatibility have long been difficult to achieve at the same time. Ethereum created the foundation for smart contracts but suffers from low throughput and high fees, while many high-performance chains sacrifice decentralization and ecosystem compatibility.
Monad takes a different approach by building a parallelized architecture from scratch. With technologies like MonadBFT, an asynchronous execution engine, and RaptorCast, Monad shows that high performance can coexist with full EVM compatibility. Developers can easily migrate Ethereum applications, and users can enjoy near-instant on-chain interactions in a familiar environment.
These innovations have attracted top-tier investors. In 2024, Monad raised $225 million in a Paradigm-led round, with participation from Coinbase Ventures, Wintermute, Amber, GSR, and others. Delivering 10,000 TPS, one-second finality, and gas fees under one cent, Monad breaks Ethereum’s performance ceiling and provides a strong foundation for high-frequency trading, blockchain gaming, and real-time applications. With this balance of speed and compatibility, Monad is positioned as a promising next-generation Web3 infrastructure.
2. System Architecture
Monad is designed around three core goals: easier development, faster transactions, and a more secure and decentralized network.
EVM Compatibility:
Monad is fully compatible with EVM bytecode, meaning developers do not need to learn new languages like Move or Rust. Ethereum smart contracts, tools, and DApps can be migrated directly. In addition, Monad improves EVM execution efficiency by optimizing instruction scheduling and state access. Unlike Ethereum’s linear execution model, Monad uses instruction-level parallel scheduling, allowing batches of transactions to run in parallel across multi-core CPUs, significantly increasing throughput.
High Performance:
Performance is Monad’s key strength. With its custom MonadBFT consensus mechanism, the RaptorCast networking protocol, asynchronous parallel execution, and JIT compiler optimizations, Monad achieves up to 10,000 TPS. Blocks are produced in 0.5 seconds and reach finality within 1 second. This level of speed and stability supports high-frequency trading, blockchain gaming, AI-driven real-time interactions, and other demanding applications, while keeping average gas fees below one cent.
Decentralization:
Unlike many high-performance chains that rely on high-end hardware or centralized sequencers, Monad enables fair participation through a globally distributed validator network. Any node with standard hardware can join the validator set, helping prevent computational centralization and governance monopolies.
3. Tokenomics
MON is the native token of the Monad network, used for gas payments and staking. The total supply is 100 billion MON. At mainnet launch, 10.8% (10.8 billion) will be unlocked and circulating, coming from the public sale (7.5%) and airdrop (3.3%).
38.5% is allocated to ecosystem growth and managed by the Monad Foundation.
The remaining 50.6% goes to the team, investors, and Category Labs, all locked for at least one year and vesting over four years:
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Team: 27%
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Investors: 19.7%
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Category Labs: 3.95%
The Foundation plans to delegate 15–25 billion MON to validators for network security and ecosystem incentives.
MON has a dynamic supply model: about 25 MON are issued per block as staking rewards (around 2% annual inflation), while part of the base transaction fees is burned to offset inflation. All locked tokens will fully vest by Q4 2029.
4. Market Performance and Ecosystem Projects
Kuru Exchange
Kuru is an on-chain order-book DEX on Monad that also integrates AMM and aggregates major liquidity sources. It offers both a Pro trading mode and a Lite swap mode, making it suitable for both advanced and beginner users. It is one of the highest-volume DEXs in the ecosystem and raised $11.6 million in a 2025 Series A led by Paradigm and Electric Capital.
aPriori
aPriori is Monad’s native MEV infrastructure and liquid staking protocol. Users stake MON to mint aprMON and earn both staking rewards and MEV revenue. It is optimized for Monad’s parallel execution environment and uses a probabilistic MEVA model. By 2025, it had raised over $30 million, making it one of the ecosystem’s largest DeFi projects.
Castora
Castora is a decentralized P2P prediction market on Monad, similar to Polymarket. Users pay an entry fee to participate; the prediction closest to the final snapshot price wins the entire pool. It currently offers an ETH price prediction market with a 10 USDC entry per round.
Kintsu
Kintsu is a liquid staking protocol built on both Aleph Zero and Monad, created by a former Pangolin strategy lead. It raised $4 million in 2025 and will launch sMONAD LST during Monad’s first week of mainnet. Its Aleph Zero product, sTZERO, is already live on testnet.
Modus
Modus is a prime brokerage protocol on Monad designed for high-value DeFi users. It combines lending, delta-neutral vaults, and auction-based liquidations, redirecting profits—normally captured by liquidators and arbitrageurs—back to LPs and protocol participants to improve capital efficiency.
5. Coinbase Launch Analysis
Market expectations place Monad’s pre-listing valuation near $5B, while the public sale implies about $2.5B, so MON will likely open around $0.025–$0.05. But all initial circulating tokens come from the public sale and airdrop, both fully unlocked at TGE. This creates heavy early sell pressure, and the opening price may be very volatile.
Risks are clear. If MON opens at $0.05, early sell pressure could exceed $540M, and with the market still weak, it’s uncertain whether buyers can absorb it. Coinbase’s strict compliance rules also mean that non-US users may face KYC or regional restrictions.
If MON lists at a $5B FDV, the public sale could see up to ~2× upside, but recent new tokens have performed poorly, so there is real short-term downside risk.
6. Conclusion
Monad’s strength is combining high performance with full EVM compatibility, making it attractive for trading, gaming, and real-time apps. But in today’s L1/L2 competition, technology alone is not enough; ecosystem growth matters more.The ecosystem is still early and lacks a dominant flagship project, but teams like Kuru, aPriori, Castora, Kintsu, and Modus are building the first layer of DeFi and trading infrastructure. There is still large long-term potential, especially in DEXs, gaming, and high-frequency trading apps.
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