Could Aptos crypto be among the coins poised to deliver impressive upside in the market’s next bullish phase?
APT price has been getting recognition for its performance and growth in key metrics.
The markets have recently shown signs of demand resurgence after a bearish period, and Aptos crypto could be ripe for a recovery rally. For reference, the cryptocurrency has been trading closer to its historic low than its ATH.
APT price hovered just above $3 at press time, which was equivalent to a 73% discount from its highest level in the last 12 months. It was even more discounted from its ATH.
APT price was up about 27% from its lowest point so far this month, which was indicative of demand resurgence.
However, the still severely discounted prices highlight more potential upside. There were additional reasons underscoring the cryptocurrency, especially pertaining to the Aptos network performance.
Aptos Crypto Could Benefit From Growing Stablecoin Liquidity
Liquidity flows are a healthy yardstick for assessing the potential for organic demand. Interestingly, the Aptos network just ranked second after Ethereum in the list of networks with the highest stablecoin inflows.
The Aptos network had almost $700 million worth of stablecoin liquidity inflows in the last 24 hours. Higher liquidity flows into the network could indicate more demand for the network’s native services.
The Aptos crypto, APT, could also benefit from this rising network activity since it is used to pay for fees, for staking, and governance.
A few other metrics also revealed more details about Aptos network activity and growth. Aptos stablecoin supply maintained an overall positive trajectory in the last 12 months.
It had just over $285 million worth of stablecoins on 13 November 2024. It had about $1.40 billion in stablecoin liquidity in the last 24 hours.
But it was not all positive performance for the Aptos crypto network. It still demonstrated slowing growth in other areas.
For example, Aptos TVL has been declining since May, and DEX volumes have plummeted in the last few weeks.
For context, the highest TVL figure observed in May was roughly $1.27 billion. That figure has since cooled to $607 million.
DEX volume also dropped from about $1.4 billion in the second week of October to $652 million between 3and 9 November.
Lower TVL figures highlight weaker demand for the cryptocurrency, while ascending TVL align with higher confidence and therefore more demand. Meanwhile, declining DEX volumes confirmed lower activity, hence weaker organic demand.
Is APT Being Subdued by its Aggressive Vesting Schedule?
There was another major factor behind the subdued APT price despite the network’s robust activity. The cryptocurrency has one of the most aggressive vesting schedules in the crypto market.
New coins have been making their way into the market every month. The cryptocurrency’s supply grew from about 502 million APT to 720 million APT in the last 12 months.
Roughly 11 million new coins were added each month. This vesting schedule has been diluting the cryptocurrency and undermining incoming demand.
Despite the aggressive vesting schedule, Aptos crypto was still considered a low-cap coin because its circulating supply was less than $1 billion. This combined with improving network activity may boost its appeal among investors