Advertisement
APT Price Rallies as Aptos Unleashes 10% of Token Supply
- Layer 1 blockchain Aptos has released 8.89% of its total token supply.
- The market responded positively, with the price of APT jumping 12% in just a few days.
- While the overall crypto market has had a shaky few days, Aptos’ recent surge showcases its unique strengths and growing ecosystem.
- Aptos has secured several high-profile partnerships including Google Cloud and Microsoft.
The crypto market has been a little rocky as of late – but don’t tell Aptos (APT). The price of APT has soared just hours after the Layer 1 blockchain unlocked nearly 10% of its native token supply. December 11th saw Aptos distribute 24.84M APT – equivalent to 8.89% of its total supply – to its burgeoning community. Within 48 hours, the price of APT peaked at 16% higher, with the token now hovering at approximately USD $8.70 (AUD $13.30). Typically, one would expect a mass token allocation to have the opposite effect, especially given the iffy market conditions this past week. So what’s behind APT’s performance?
What’s the Deal With APT’s Scheduled Release?
The Aptos development team has been steadily unlocking its total supply of tokens every month, with the next ~24.8M APT set to be unleashed on January 12th. The distributions are allocated four ways:
- Community (51%)
- Core contributors (19%)
- Foundation (16.5%)
- Investors (13.5%)
The purpose of such a schedule is to avoid dumping an entire token’s supply at once, which can ruin demand and cause the price of the cryptocurrency to crater.
Even so, a mass increase in supply typically correlates with a short-term drop in price as demand catches up. Therefore, given the structured release of the tokens, it hardly came as a surprise to investors and may have had little to do with the skyrocketing valuation of APT.
Aptos Getting Busy In DeFi
Aptos is a relatively new crypto project. It’s intended as a Layer-1 blockchain built by ex-employees of Meta (Facebook) that’s set to host a wide range of DeFi applications. NFTs, gaming, artificial intelligence and social media will be the key drivers of the ecosystem, but the blockchain’s potential is much broader, given its excellent scalability.
So far, Aptos have already secured several high-profile partnerships to hone in on their goals. Heading their list of collaborations includes Microsoft, Amazon, Google, Mastercard, SushiSwap and Coinbase. Growing anticipation of the blockchain’s potential in the DeFi space is likely a major reason behind its short-term explosion.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
