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I have a rainbow monti myself. It is growing very fast. From my experience it likes low light and low flow. I had it in high light and high flow and it did not grow at all, also faded. I moved it to the bottom of the tank in low light, low flow. It took off and grows very fast. Superb colors, definitely a rainbow coloration of polyps. The rim is a light blue. I will post pics tomorrow.
Long story short, my experience:
Low Light. Low Flow.
From the look of the close up shots it looks more like they're bleaching off. That's no blue rim bud, what's your light setup?