Aptos (APT) has released 25 million tokens, impacting market dynamics. Historically, token releases lead to price drops due to the increase in supply. The next token unlock for Aptos is scheduled for May 12, 2024.
Today, there was a major development in the cryptocurrency world. Altcoin Aptos (APT) unlocked tokens worth $294 million. After this news, the token price is now trading at $11.90. Let’s see what the situation was before the token unlock.
Aptos (APT) Token Unlock Event: Impact and Outlook
According to TokenUnlocks data, approximately 25 million locked APT tokens, including those held by early investors, were unlocked today. These tokens have now entered the market. Research suggests that prices typically decrease during such events as the surge in supply surpasses investor demand for the asset. Indeed, the APT price had already declined by 30% over the past four days before the development.
With the Layer-1 Blockchain Aptos (APT) unlocking $294 million worth of tokens, attention now turns to the next unlock event. Scheduled for May 12, 2024, the following unlock for Aptos will involve approximately 11.3 million APT tokens. Investors are closely monitoring these developments to gauge their impact on the market.
Aptos (APT) Token Allocation and Market Impact
Of the APT tokens released into the market, approximately $141 million worth went to core participants, $100 million to investors, and $38 million to community members. Additionally, $16 million worth of tokens was allocated for the ecosystem development foundation.
Research conducted by crypto analysis firm The Tie indicates that price declines are historically common in events where the increase in supply surpasses investor demand for the asset. CoinGecko data reveals that the APT tokens to be released represent only 6% of the current circulating supply, yet nearly double the daily trading volume on exchanges.
APT was trading at $11.90 at the time of writing, with investors closely monitoring market trends following the token unlock event.
Aptos (APT) Outlook and Price Analysis
Following the recent major event, Aptos (APT) can expect a period of relative stability until May 12. However, the movement of Bitcoin’s price will be crucial to monitor during this time.
The price movement of Bitcoin will significantly impact APT’s price. If Bitcoin initiates a new rally, it will likely have a positive effect on APT’s price.
In the event of a rally, APT’s price will initially aim to surpass the $14 level. Subsequently, it is anticipated that APT’s price will attempt to break through the $15 and $16 levels.
In the event of a decline, the critical support level for APT is at $11. Investors should closely monitor these price levels and market dynamics for potential trading opportunities.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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