Aptos price bullish momentum has collapsed in the past two days. The coin was trading at $7.56, where it has been since Wednesday. This performance means that APT has surged by more than 650% since it went public. Its market cap has surged to more than $900 million, making it a top 100 cryptocurrency.
Aptos has made headlines this week. On Tuesday, we reported that Ankr Protocol will become its RPC provider as it seeks to compete with the likes of Ethereum and Solana. OKX and Binance said that they will launch its perpetual futures.
At the same time, Aptos went public this week as some investors remained concerned about its tokenomics. As part of its whitepaper, tokens that private investors hold will be subject to a 12-month lockup period. And unlike other blockchains, the entire circulating supply will be released in the next ten years.
For starters, Aptos is a new blockchain project that is seeking to compete with the likes of Solana, Cardano, and Ethereum. The developers raised cash at a $1.2 billion valuation from the likes of a16z and FTX. This made it one of the biggest launches this year.
Aptos aims to be a better chain than its peers by having strong speeds. In its testnet, the developers found that it could handle over 130k transactions per second. This is remarkable since Ethereum handles less than 50. However, some users have found that its transaction speeds are actually significantly slower than what the developers claimed.
Still, from a fundamental side, it is unclear whether the market needs another faster blockchain. For one, platforms like Kadena can handle over 450k transactions per second. It has struggled to gain traction.
Also, we have projects like Solana and Avalanche that can handle over 2,000 tps. In contrast, a company like Visa handles less than 5,000 tps and works fine. Therefore, with competition in the industry rising, it is unclear whether and why developers will move to this new chain.
At this point, it is relatively difficult to conduct a good APT price prediction since there is not enough data. However, historically, cryptocurrencies that have so much hype in their early days tend to disappoint.
This includes popular coins like Sweat Economy, GMT, and ApeCoin. Therefore, I suspect that the coin will plunge to about $5 in the coming days on profit-taking. A move above the resistance at $9 will invalidate the bearish view.
This post was last modified on %s = human-readable time difference 05:38