Aptos (APT) Rises 500% as Bitcoin Stabilises Around $23,000 – What’s Behind This Rally?

    1
    2099

    By Marcus Sotiriou, Market Analyst at the publicly listed digital asset broker GlobalBlock (TSXV:BLOK).

    Bitcoin traded above the recent high of approx. $23,300 last night and reached a high of approximately $23,800. However, it deviated the previous high and fell back below, which is a bearish signal. On the lower time frame we are within a small range though between $22,300 and $23,300, so price could trade down to the lows of $22,300 in the short term.

    The Aptos token (APT), a layer 1 blockchain that has large projects such as PancakeSwap built on it, has been a top performer in recent weeks. It has rallied over 500%, from around $3 to $19.50 in just a month. APT is a relatively new token that has strong VC backing, a scalable platform and a large developer base. The Aptos team have done a great job of engaging their community, which has contributed to the spike in price. For example, Aptos hosted their first AptosMoveMonday of 2023 on Jan 9th, where founders answered a number of questions. They announced upcoming community engagement events, such as the AptosWorldTour, various conferences and developer meet-ups.

    In addition, data from TopazMarket shows that Aptos NFTs have increased in both floor price and trading volume. Aptos Monkey has established itself as a stand out project on Aptos.

    This price rise has led APT to reach a fully diluted valuation (FDV) of $19 billion. This is almost double the FDV of Polygon (MATIC) and 5x the market capitalisation of Cosmos (ATOM). This suggests that despite the impressive technology and community engagement, the APT token could be overvalued currently.

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