According to data from “Token Unlocks,” in November the Aptos project will release 20 million APTs, or about 112% of the total daily trading volume, which could be frowned upon by investors and trigger a downturn for crypto.
However, for now the focus is on 3 distinct cryptocurrencies, as there could be major liquidity releases as early as September.
We are talking about SOL, APE and OP. Are these altcoins in danger?
Let’s see all the details together.
- The plan for the release of 20 million APT by layer-1 Aptos:*
The layer-1 Aptos blockchain protocol will release a whopping 20 million APT to the market on 12 November 2023, according to a crypto vesting plan tracked by the “Token Unlocks” source.
The figure will obviously contribute to increased selling pressure for the cryptocurrency, which will face strong speculative positions from traders.
In a nutshell, the unlock is equivalent to $103.8 million, if we consider the current market price of APT at $5.19, representing more than 8.5% of Aptos’ circulating supply.
Very often crypto projects set up these kinds of plans to prevent trading partners and early investors from liquidating their positions all at once, causing the value in the coin market to plummet.
For Aptos there has already been another token release 2 days ago, with $24.85 million in crypto poured into the hands of investors. In this case, though, there was no negative influence on APT’s price, and on that day, the crypto saw an increase of 0.50%.
In any case, according to research firm The Tie, the November release will free up a large amount of liquidity that could impact its prices in a strongly negative way.
In total, 20 million APT corresponds to 112% of the average volume traded on exchanges over the past 30 days.
The situation for the crypto of Aptos founders, former Facebook engineers, risks the collapse of its value considering the fact that another 6.15 million APT will also be released in December according to a monthly distribution plan.
Derivatives traders in the digital currency market seem to be predominantly bearish on APT.
We can easily see this from the “funding rates” metric of perpetual swaps, which by adding up all open positions on the Binance, Bybit, Okx, Bitget, BingX, and Huobi exchanges, shows a clear prevalence of short positions.
Indeed, it is the short sellers who are paying the longs to keep their trades open with the funding rate peaking yesterday at a negative 0.0396% per 8 hours.