Aptos (APT) Price Drops 8% After $62M Worth of Tokens are Unlocked

 

Aptos APT price

Having spoiled its investors earlier this year, the price of the crypto Aptos (APT) is currently declining due to the latest events in its ecosystem.

During Monday's morning trading session in Asia, the native token of the highly-anticipated Aptos network has experienced a greater decline compared to the overall market, indicating that a token unlock may be the reason.

Beincrypto reports that, approximately 0.45% of Aptos' total supply, equivalent to 4.5 million APT tokens valued at around $62.5 million, were unlocked on Feb. 12. Another 4.5 million tokens are set to be released into the market during the next scheduled unlock on March 12.

Aptos holders were optimistic about a price increase similar to the previous token release, but after unlocking it was the other way around.

Token Unlocks reports that 85% of the APT token supply is still locked up and will be gradually released every month over the next decade.

At present, only 14.8% of the total supply of Aptos is unlocked, with 167.7 million tokens circulating and a market cap of around $1.95 billion.

Projects commonly execute token unlocks to gradually release locked shares into the cryptocurrency market in order to align incentives for stakeholders. However, this process can cause short-term volatility and lead to price drops.

Aptos has received criticism from the crypto community for its tokenomics, which are heavily dominated by venture capital. The blockchain, which rivals Ethereum, was developed by former Facebook employees who worked on the now-defunct Diem project.

Despite a 278% surge in its token price since the beginning of January, momentum appears to be fading for Aptos as its price has declined since reaching its all-time high on Jan. 26.

APT Price


On that day, APT experienced a drop of approximately 8% from an intraday high of slightly over $14 to just below $13 a few hours ago. As of writing, APT is being traded at $13.08.

In addition, APT has decreased by roughly 30% over the past two weeks, as it retreats from its peak prices in late January.

After reaching $19.92 last month, APT has since decreased by 34%, with the token unlocks accelerating those losses. [pc]



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