Aptos (APT) Price Rallies for Six Straight Days as Bitcoin and Most Altcoins Make a Comeback

Aptos (APT), a relatively new layer-1 blockchain, has shown strong user metrics as interest in its network has increased.

Aptos (APT) price has risen for six consecutive days, showing resilience as Bitcoin and most altcoins have continued making a comeback.

Encouraging Aptos User Metrics

Aptos, a layer-1 blockchain that launched in October 2022, has attracted attention with its user metrics. According to Footprint Analytics, the number of Aptos addresses has surged, rising from 74,000 at the beginning of the year to over 186,000.

Moreover, users have been actively transacting on the Aptos network, with one of the highest achievements being over 117 million transactions in a single day in May.

Aptos’ decentralized finance (DeFi) ecosystem is also outperforming that of major cryptocurrencies like Cardano. Data from DeFi Llama shows that Aptos’ total value locked (TVL) has soared to a record high of 53.4 million APT, up from the YTD low of 11.5 million APT.

Furthermore, the volume of stablecoins in the ecosystem has risen to over $120 million, compared to the YTD low of $49 million. Stablecoins indicate more liquidity in a blockchain and act as a proxy for economic activity.

High Staking Yield, but Dilution is a Risk

Aptos has attracted investors due to its higher staking yield compared to most cryptocurrencies. While Ether’s staking yield is 3.4%, Solana’s is 6.5%, and Cardano’s is 2.87%, Aptos offers a 7% yield.

Most of the Aptos in circulation have been staked, with 79% participation, which is a positive catalyst. However, the risk, which likely explains why the APT price has dropped by 63% from the YTD high, is dilution.

According to TokenUnlocks, a platform that tracks cryptocurrency token unlocks, 367 million Aptos tokens are currently unlocked, and 632.50 million are locked. Millions of tokens are unlocked on the 17th of each month, and this process will continue until February 2029.

These token unlocks are typically bearish for a cryptocurrency because they increase the circulating supply. For instance, some of these tokens will be allocated to staking pools, diluting existing holders.

In comparison, a cryptocurrency like Mantra (OM) yields 21% and has all tokens in circulation. Similarly, a large portion of Avalanche’s tokens have been unlocked, making its 8% yield safer.

Aptos token’s trading volume has been declining after peaking in March. Meanwhile, the token price remains below the support at $7.70 (the lowest point in May) and the 100-day moving average, which could indicate that the current recovery is part of a dead cat bounce.

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