In a significant cryptocurrency market development, Aptos (APT) has made a substantial move by releasing $294 million worth of its tokens into circulation. This event has resulted in the token’s value being traded at around $11.90. An examination of the situation prior to the token release reveals a crucial perspective on its impact.
Aptos Token Surge Floods the Market
Initial reports confirm that around 25 million previously locked APT tokens, including those owned by initial backers, have been made available in the market. This release often leads to a price decrease as market supply overwhelms the existing demand. This pattern held true for Aptos, as the token’s price dropped by 30% in the four days leading up to the release.
As the market adjusts to this influx of Aptos tokens, stakeholders are already shifting their attention to the next release date, scheduled for May 12, 2024, which will free up about 11.3 million APT tokens.
Distribution and Market Impact
The recent distribution saw key project contributors receive $141 million in APT tokens, investors were allotted $100 million, community members gained $38 million, and $16 million was reserved for ecosystem development. Market analysis indicates that such token releases generally cause price declines due to the sudden increase in token availability. With this release, APT tokens represent a significant 6% of the total circulating supply but nearly double the typical daily trading volume.
Future Price Trajectories for Aptos
Looking ahead, the immediate pressure of token release is off Aptos until the next unlock date. However, Bitcoin‘s market movements are essential to monitor, as they could heavily influence APT’s value. Any uptrend in Bitcoin is likely to have a positive knock-on effect on APT.
Points to take into account
- Next major Aptos unlock event is set for May 12, 2024.
- Aptos’s (APT) price is sensitive to Bitcoin’s market swings.
- Key support level for APT should it decline is at $11.
The market will closely watch how Aptos handles this current release, with its next challenge over a year away, and whether it can sustain or improve its market position in conjunction with Bitcoin’s performance.