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Aptos Price Struggles to Stay Above $8 But APT Market Cap Up 127% in Three Months

Last Updated May 14, 2024 11:01 AM
Nikola Lazic
Last Updated May 14, 2024 11:01 AM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Aptos market cap rose 127%, revenue up 37%.
  • APT price gains are relatively modest, despite strong fundamental growth.
  • Aptos’ inflation rate decreased slightly but high release pressures remain.

According to a Messari report , Aptos saw significant growth in key metrics during the year’s first quarter. Rising Bitcoin prices and a general increase in market capital inflow fueled this surge.

Despite these favorable conditions, Aptos’ native token, APT, recorded only modest price gains compared to other leading cryptocurrencies. Its price rose by 143% since the start of the year to its yearly high of nearly $20 in March. However, after it did, it decreased by nearly 60%, whipping out all the gains previously made. 

Aptos Fundamentals 

Aptos‘ market cap rose by 127% quarter-on-quarter to $6.6 billion, surpassing other projects of similar size and improving APT’s market cap rank from 33 to 22. Its revenue, which includes all protocol-collected fees, grew by 37% to $475,000. 

Aptos
APT Circulating Market Cap | Credit: Messari

However, when measured in APT, revenue fell by 10%. It’s important to note that all revenue generated is burned, but this action has yet to mitigate inflation significantly. APT’s initial annual inflation rate was 7%, scheduled to decrease by 1.5% each year until it stabilizes at 3.5%. As of mid-October, the inflation rate slightly decreased to just under 6.9%, with further inflationary pressures from releasing nearly 31% of the Genesis supply by the end of the first quarter.

The network saw substantial activity increases, with average daily transactions and active addresses growing by 66% and 97%, respectively. The average transaction fee fell by 45% to 0.0006 APT ($0.007) despite this. Daily new addresses also rose by 91% to 44,000, and the weighted average one-month retention rate improved by 82% to 14%.

Aptos (APT) Price Analysis 

APT started its previous uptrend in October last year when it established a low of $4.70. It rose to $10 by the end of December and struggled to keep up the momentum, falling to $8 in January. 

APTUSD
APTUSD Coinbase | Credit: Nikola Lazic/Tradingview

This is the point from which its last and strongest momentum uptrend began, leading to a revisiting of its all-time high of nearly $20. APT moved to the upside in a five-wave manner, hinting at a potentially larger bull cycle. However, in the following downturn, an even stronger momentum decline occurred.

In comparison, APT needed 80 days to climb from $8 to $20, while it fell from $20 to $8 by 18 days – from March 26 to April 13. After a bounce from the 0.786 Fibonacci retracement level, the price is again back retesting it. 

APT could have ended its corrective phase, meaning it would find support at $8 on a double bottom and start a new uptrend. There aren’t any signs of this yet, so we would need to receive a confirmation. 

Only the daily RSI hints at a potential price bottom with the 0.786 Fibonacci level interaction. However, as the downtrend remains untacked, a lower low of $6.50 could be seen if the $8 doesn’t hold. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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