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APT token release sparks speculation and price volatility. Assessing…

3min Read

The APT token lost its value over the last couple of days. However, the Aptos Foundation continued with the unlock despite the loss in value. Where will this leave the APT token?

Aptos token release sparks market speculation and price volatility

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  • 4.54 million APT tokens worth $22.81 million are set to be unlocked in less than 24 hours.
  • A negative funding rate has dominated APT as its price continues to decline.

Aptos has experienced a stable price trend over the past few days, except for a notable recent drop in value. Despite this recent price drop, another token batch is scheduled for release within the next 24 hours. What percentage of APT is expected to be released, and could this release influence the price trend further?


– How much are 1,10,100 APTs worth today


Community and Foundation to receive unlocked Aptos

According to data from Token Unlocks, Aptos was scheduled to unlock some of its tokens in less than 24 hours. The Token Unlocks website indicated that approximately 4.54 million tokens, valued at approximately $22.81 million, were set to be released. These tokens represented nearly 2% of the total circulating supply. As of this writing, roughly 82% of the tokens remained locked.

The unlocked tokens were intended to be distributed between the Foundation and the community. Specifically, the Foundation was poised to receive around 1.33 million APT, equivalent to approximately $6.669 million in value. On the other hand, the community was set to receive 3.21 million APT, valued at approximately $16.11 million.

Analyzing the current Aptos supply and market capitalization

As per CoinMarketCap data, the press time circulating supply of Aptos exceeded 230 million tokens, with a total supply exceeding 1 billion. Furthermore, at the time of writing, the market capitalization stood at over $1.1 billion, although it had declined by more than 4% due to the recent price drop.

In contrast, the trading volume surged by over 20%, with approximately $80 million in trading volume recorded as of this writing. It remained uncertain whether this spike in trading volume was directly related to the impending token unlock event.

Price trend not so APT

Although Aptos managed to maintain a relatively stable price trend in the past, it recently experienced a significant decline over the past two days. On 10 September, it incurred a 5.6% loss, closing trading at approximately $5.1 per token.

As of this writing, the decline persisted, with Aptos trading at around $5.0 per token, reflecting a loss of over 2% in value. These consecutive declines pushed Aptos into the oversold zone on its Relative Strength Index (RSI).

Aptos price trend

Source: TradingView

Furthermore, the impact of the token unlock still had to be determined with regard to the parties set to receive the unlocked tokens. However, if a sell-off were to occur, it could further negatively impact the price trend of APT.


– Realistic or not, here’s APT market cap in BTC’s terms


Additionally, an examination of APT’s funding rate on Coinglass revealed consistent negativity over the past few weeks. As of the current writing, the funding rate stood at -0.02%. This negative value suggested that traders were predominantly speculating on a price decline.

Given the consecutive declines that APT had recently experienced and the impending token unlock event, short traders may continue to dominate the funding rate, indicating a prevailing sentiment of bearishness in the market.

 

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Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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