Connect with us
Active Currencies 14530
Market Cap $2,715,670,408,296.37
Bitcoin Share 49.75%
24h Market Cap Change $-0.48

How Bitcoin crashed Aptos’ [APT] token unlock party

3min Read

Holders of the APT token may need to rest their hope on BTC’s recovery. If not, then…

Aptos news around its token unlock and Bitcoin's price plunge

Share this article

  • APT tokens, valued at $351 million, were released into circulation.
  • Bitcoin’s plunge triggered a double-digit decrease for the token.

Layer-1 blockchain Aptos [APT] unlocked 6.24% of its total supply on the 12th of April. But the market crash, led by Bitcoin [BTC], put a stop to the optimism around the event.

Unlocking tokens, and moving them into circulation, have effects on price. In some cases, the event causes high volatility, and the increase in supply causes the value of the token involved to decline.

At the time the APT tokens were released, they were worth over $351 million. Before the unlock, the Aptos community was hyped about it, with some predictions noting that the price might rally afterward.

No event is big enough than the king

But then, Bitcoin dropped to $65,000, and altcoins, including APT, were not spared from the onslaught. At press time, the price of the Aptos native token was $10.13.

This value meant that the cryptocurrency had lost 12.57%  of its value in the last 24 hours. Beyond the price, Bitcoin’s correction affected some other metrics on Aptos’ network.

One of the most affected was the volume. In the early hours of the 12th of April, APT’s volume was less than 200 million. Fast-forward to the time of writing, the volume had increased to 543.09 million.

An increase in volume indicates rising interest in a cryptocurrency. But it is not all the time the surge in volume means a spike in buying pressure.

For APT, it seemed like the other way around, with evidence shown by the price.

Aptos showing bearish signs after a massive price decrease

Source: Santiment

However, it seems that the token might not be done with the downturn yet. If the volume falls later, while APT’s downtrend continues, the decline might become weak. Hence, a rebound could be next.

In this instance, APT might attempt to revisit $12. But if Aptos’ volume continues to decrease while the price falls, a further plunge could be an option.

Should this be the case, the price of the token might drop below $10.

Watch out! Something is brewing

Meanwhile, social volume around the project dropped. Before Bitcoin came into the picture, APT’s social volume was expected to increase considering the scheduled unlock.

However, the decline here was proof that the price collapse of the broader market overshadowed it. If not, search for Aptos might have jumped.

Likewise, social dominance also fell, indicating that discussions around the project were nowhere near previous highs. For the price, the drop in Social Dominance could be great.

Aptos social dominance and volume decreased

Source: Santiment

This is because a surge in the metric would have implied that hype around it. At this point, it could be difficult for the price to rally harder.


Is your portfolio green? Check out the APT Profit Calculator


But buying when there is little to no attention might make participants who take action early to the game. For the time being, APT might continue moving sideways.

However, if Bitcoin retests $70,000, the token might climb higher, and a 50% increase could be possible.

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.