In the crypto universe, a profound event is about to ripple through Aptos, a distinguished Layer 1 protocol developed by former Facebook staff. Data from TokenUnlocks reveals that a staggering 20 million Aptos (APT) tokens are poised to be unlocked this November, a move that could shake up the crypto market.
The forthcoming APT unlock, valued at $103 million based on the current $5.15 token market rate, represents a significant 8.5% of Aptos’ circulating supply of 235.02 million. Token locks embody a restraint mechanism designed to discourage hefty ‘whale’ investors and project members from mass selling, an act that could sink the market value in a heartbeat.
According to the research company, The Tie, this leap in APT’s November’s liquidity will leave a substantial footprint. As per its recent newsletter, “The 20 million APT release, worth $106 million, amounts to 112% of the standard daily trading volume for the previous 30 days. These monthly unlocks will align with monthly staking reward unlocks, further fuelling the liquidity. Since last year, 4.62 million APT have been released every month for community and foundation goals.”
Historically, The Tie posits that token unlocks that boost liquidity tend to put pressure on prices, thus stirring interesting market dynamics.
Meanwhile, the most recent data from the perpetual futures market coupled to APT reveals that crypto traders’ sentiment towards the cryptocurrency is dipping. Open-interest-weighted funding rates have sunk to their lowest since February, suggesting a growing inclination towards bearishness in the market.
The term “open interest” highlights the active contracts tally and it climbed to an imposing 5.33 million APT, hitting the highest mark since mid-August. Coupling this surge in open interest with descending funding rates suggests that the market sentiment is skewing bearish.
This cautionary note for Aptos tokens is a climactic moment that could resound throughout the market, leaving crypto enthusiasts and traders in suspense about what’s to come. As always though, it’s important to remember that the world of blockchain technology and cryptocurrency operates in a territory marked by volatility and unpredictability, where the winds of change can shift the landscape on a dime.
Source: Coindesk
