- Breaking down the reason behind Aptos’ sudden rise to fame.
- Demand for APT is slowing in market conditions.
Every once in a while, a crypto project enters the list of top blockchain networks and quickly climbs the ranks. Aptos is the most notable project to achieve this, but why has it quickly become so popular?
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Aptos’ market cap was just over $2.5 billion at the time of writing. For perspective, the market cap at the start of 2023 was less than $500 million, so it has grown slightly over $2 billion over the past five weeks.
This growth has earned it a spot in the top 30 blockchain networks by market capitalization. An unusually large influx of funds in such a short period of time, especially for a lesser-known project.
There is no official word on why Aptos’ native APT cryptocurrency is facing so much demand. However, there are claims that Koreans call the native currency “apartment”.
The narrative behind this is that Koreans have been buying and holding the APT hoping that someday it will be high enough to support a condo market.
For those of you wondering why $APT it’s $17. Aptos is a meme currency in Korea.
The #1 asset class in Korea is real estate — more specifically, Apartments.
The retailer calls Aptos an “apartment” claiming that people can one day afford to buy a real apartment if they have $APT.
— Alex Shin (@AlexShin) February 4, 2023
A panoramic view
Earlier reports indicated that there was strong buying pressure from South Korea. As expected, Aptos hails from Korea and has a strong community in the country. The network has just completed its first hackathon held in Seoul, the capital of South Korea.
.@Aptos_NetworkThe Seoul Hackathon has come to a conclusion.
It was a pleasure to meet so many friends who flew in from all over the world, as well as the Korea-based teams building projects at Aptos!
See everyone at the next hackathon.
Hint: sooner than you think
— Ferum (@ferumxyz) February 5, 2023
Additionally, Aptos has seen an uptick in development activity since early January. However, development activity slowed significantly in the final days of the hackathon.
Likewise, it has seen strong volume growth in the last four weeks, which then peaked in the last week of January.
Can Aptos keep up with this demand? Well, so far we’ve seen a drop in the network’s social volume. This coincides with lower intensity, so visibility has faded.
Weighted sentiment also declined in the first five days of February, confirming that there is now a bearish bias.
Sentiment reflects market capitalization performance. The token’s purchase cap at press time has been reduced by over $500 million in the past six days, so there has been some selling pressure.
This means that the wave of demand, as seen in January, has come to an end and profit-taking has occurred, as evidenced by the drop in market capitalization.
The outflow rate also suggests that many APT holders are choosing to HODL rather than sell. This is why the selling pressure seen in recent days has not manifested as a massive decline.
APT’s current performance appears to be in line with the overall cryptocurrency market performance, even at the $15 press time price.
A little research reveals that there is not much difference that sets Aptos apart from other PoS networks. The key defining feature is that it is South Korean and gets a lot of support from its home market.